Florida Insurance Guaranty Fund

FREQUENTLY ASKED QUESTIONS

Liquidation is similar to bankruptcy. When a company is liquidated, the Liquidator (also referred to as the Receiver), collects the assets of the company and verifies the liabilities such as claim payments and bills. The Liquidator then develops a plan to distribute the company’s assets according to law and submits the plan to the Court for approval.

Yes. You will need to obtain coverage with another insurance company. However, we do not recommend any particular company. You may contact any licensed insurance agent to get the names of other insurers. For homeowner’s insurance information in the State of Florida, you may contact the Florida Market Assistance Plan at 800-524-9023.

The processing and payment of pending covered claims will be made by FIGA (subject to the lesser of policy limits or FIGA’s maximum cap, see # 5 below). You may contact the Florida Insurance Guaranty Association (FIGA) at:

PO Box 10366, Jacksonville, Florida 32247-0366

(800) 988-1450 Toll Free, (904) 398-1450, (904) 398-1975 FAX

A covered claim is defined in the FIGA statute (F.S.361.54) as “… “Covered claim” means an unpaid claim, including one of unearned premiums, which arises out of, and is within the coverage, and not in excess of, the applicable limits of an insurance policy…”.

If your insurance company has been declared insolvent, all covered claims will be paid by FIGA. The maximum amount FIGA will cover is $300,000 with special limits applying to (1) damages to structure and contents on homeowners’ claims and (2) on condominium and homeowners’ association claims. For damages to structure and contents on homeowners’ claims the FIGA cap is an additional $200,000. For condominium and homeowners’ association claims the cap will be $100,000 multiplied by the number of units in the association. No claim will be paid in excess of this cap. All claims are subject to a $100 deductible over and above any deductible identified in your policy. You may file a claim against the assets of the insurance company estate for the $100 deductible and for amounts over the cap. The Receiver will send proof of claim forms and instructions for filing a claim. All claims paid by FIGA are subject to a $100 statutory deductible and your specified policy deductible. Claims not covered by FIGA may be claims against the remaining assets (estate) of the insurance company and will be considered after all covered claims have been processed.

You should contact FIGA immediately at 800-988-1450. They will determine if you are entitled to receive legal defense just as the insurance company would have done if it were still in business.

You will receive a form from the Receiver called a “Proof of Claim” form. In order for your claim to be considered by the Receiver you must complete the form and return it to the Receiver by the filing deadline. The first $100 of your claim is included in the liabilities of the estate and will be paid with any assets that remain after all covered claims have been paid.

FIGA will pay unearned premium claims after the Receiver completes its processing of the policy records and sends the unearned premium record to FIGA.

If a dwelling is damaged due to a disaster and the insured must move due to the uninhabitable condition of the dwelling, or if a civil authority prevents access to the dwelling, the Additional Living Expense (ALE) provision of your homeowner’s policy may pay reasonable additional expenses. Your policy controls this.

If your policy includes Comprehensive coverage (a.k.a. “Other than Collision”) at the time of a disaster, then wind and flood damages are covered. For example, auto glass broken by windblown objects, vehicles overturned by the force of the wind, or auto glass that pops out due to a sudden drop in atmospheric pressure, are all covered losses. Windshield glass claims are subject to the statutory deductible but not to your comprehensive deductible.

a. As soon as possible, report damage to your agent or FIGA, even if the cause of the damage is unknown;

b. Make temporary repairs to prevent further damage, and remember to keep receipts for any supplies necessary for those repairs;

c. Save damaged items until the adjuster inspects them; additionally, take pictures and/or video, if possible, of all damages and damaged items;

d. Make your property easily identifiable by displaying the house address and insurance company;

e. Seek long term shelter if the property is uninhabitable and has sustained major damage. Reasonable expenses are generally reimbursed. The limits of your policy may determine your “Loss of Use” coverage.

f. Be patient, after disasters, especially larger ones, the company’s immediate response time may take longer than usual. There is no insurance law mandating a company inspect the property within a specified number of days, or the company front the insured money, or supplies;

g. Prepare an inventory with receipts or other evidence of value and ownership, as necessary, to assist in the claim settlement process;

h. On smaller losses start getting repair estimates, if possible;

i. If you disagree with the settlement offer, you may wish to elect mediation or arbitration; however, first try to negotiate with the adjuster or company.

Your policy controls what is covered. Generally, voluntary evacuation expenses will not be covered by your insurance policy, and only under certain conditions will mandatory evacuation expenses be covered.

Most policies will pay for food spoilage when the interruption of power is caused by direct damage to the insured premises, not if the power goes out in the general area.

Replacement cost coverage is triggered when you actually replace the item. The company will initially pay the depreciated value (ACV) and will pay the difference between depreciated value and the replacement cost upon evidence that the items have been replaced. This applies to the structure and contents. Some companies will release replacement cost payment for the dwelling when you produce a signed repair contract from a licensed contractor. In the case of a dwelling’s total loss, the structure portion of the claim is usually paid in full. The legislature changed this in 2005 and hold back no longer applies if your policy was effective on or after 10/1/05. Structures other than the main dwelling are usually covered on an actual cash value (ACV) basis.

In most insurance policies, the removal of a tree and its debris is generally limited to $500 per tree and a maximum payout of $1,000 for the entire property. Furthermore, it only applies if a covered structure (i.e., house, fence, utility building) is damaged, or if it blocks driveway access or a ramp that provides disability access.

Homeowner’s insurance hurricane deductibles are determined by the insured’s Dwelling Value as stated in Coverage A. For most homes, deductibles can range from a minimum of $250 to a maximum of 10 % of the home’s value. Individual policies have different deductibles, different coverages and specific amounts. You must read your policy to determine more specific answers