What Is FIGA and When Does It Handle Your Claim

When FIGA steps in

You open a letter saying your insurance company has been placed in liquidation. You may have an open claim, or damage you have not reported yet. The question is who pays now.

For many policies, the answer is the Florida Insurance Guaranty Association. Its own FAQ describes it as a nonprofit created by the Florida Legislature that pays valid claims and returns unused premium when a property and casualty insurer fails. Under s. 631.57(1)(b), FIGA is treated as the insurer to the extent of its obligation, with the rights, duties and defenses the failed insurer had.

FIGA’s duty starts with a court order, not with news reports. Florida law defines an insolvent insurer as a member insurer against which a court has entered an order of liquidation with a finding of insolvency, and that order has become final (s. 631.54(8)). An insurer in trouble, or under supervision, is not the same thing.

What FIGA covers, and what it does not

A “covered claim” is an unpaid claim that falls within the coverage and limits of the policy, under a policy issued by an insurer that becomes insolvent, where you were a Florida resident at the time of the loss or the property is permanently located in Florida (s. 631.54(4)).

FIGA’s payments have ceilings in s. 631.57(1)(a):

• A per-claim cap set in the statute for most covered claims.
• An added amount for homeowners claims, for the part of the claim that is damage to the structure and contents.
• A separate formula for condo and homeowners’ associations that insure residential units, tied to the number of units.
• Never more than the policy owed. FIGA is not obligated beyond what the failed insurer owed under the policy, and it does not pay penalties or interest.

Some insurance falls outside FIGA altogether. Section 631.52 excludes, among others, surplus lines insurance and insurance that government provides or stands behind. FIGA’s FAQ adds that surplus lines insurers are not FIGA members. Sinkhole claims are limited too: FIGA may pay for testing it deems appropriate and actual repairs, but not attorney’s or public adjuster’s fees on a sinkhole loss (s. 631.54(4)(c)).

On deductibles, your policy deductible still applies, since FIGA stands in for the policy. FIGA’s FAQ says claims against insurers liquidated before July 1, 2021 also carry a small FIGA deductible, which the Legislature removed for insurers liquidated on or after that date.

FIGA at a glance

The 30-day window and your next policy

Your old policy does not keep running. Under s. 631.57(1)(a)1., FIGA is obligated on covered claims that existed before the insolvency or that arise within 30 days after the insolvency is determined. If the policy expires sooner, or you replace or cancel it within those 30 days, the earlier date controls. FIGA’s board may extend these time limits by up to 60 more days when needed to arrange a bulk transfer of policies (s. 631.57(6)).

In plain terms, you need new coverage fast. A loss after that window, and any extension, generally is not a FIGA claim. If you are shopping because your insurer failed, the guide to Citizens Property Insurance claims explains how Florida’s state-created insurer works and who is eligible.

Deadlines after an insolvency

Each liquidation has a claim filing deadline, often called the bar date. The DFS Division of Rehabilitation and Liquidation, which acts as the receiver for Florida insurers, says the bar date is set by the court under s. 631.181 and is the last day claims can be filed, and that claims received after it will not be processed.

After you report a claim to FIGA, FIGA’s FAQ says you will get a Proof of Claim form from the receiver, which you must complete and return by the filing deadline. A second clock runs under s. 631.68: a covered claim that is not settled, and on which no suit is filed, within 1 year after the receiver’s claim filing deadline is barred against FIGA and the insured.

The usual notice rules still matter. FIGA has the defenses the insurer had, so report damage promptly and keep the deadlines in Florida claim deadlines in mind. Whether a deadline was met on a specific claim is a legal question for a Florida attorney.

How to check whether your insurer is in liquidation

• FIGA’s insolvency list names liquidated insurers. Each company page shows the insolvency date and the claim deadline.
• The DFS receiver’s companies page lists insurers placed into receivership by the court.
• The OIR company search shows whether an insurer holds a Florida certificate of authority. FIGA’s FAQ says that is how you confirm a company is a FIGA member.

FIGA’s FAQ also states that FIGA has not had a new insurer insolvency since February 2023. That can change, so check the lists if you get a notice.

Working a FIGA claim

FIGA’s FAQ gives the same advice any careful insurer would: make temporary repairs to prevent further damage, keep receipts and photos, save damaged items until an adjuster inspects them, and prepare an inventory. The guide to temporary vs. permanent repairs covers that step. If you disagree with the settlement, FIGA says to try to resolve it with the adjuster or FIGA first; mediation or arbitration may be available.

FIGA says payment generally takes weeks or months, because it has to get claim records from the receiver. For a large homeowners or association loss, a licensed public adjuster can help document the damage and present the claim. If you want a second look at whether you have covered damage, start with a free review on the claim submission page or read about homeowners claims.