When something tragic happens like a hurricane or natural disaster, we expect our insurance company to rise to the occasion and provide the funds necessary to replace our lost possessions, like our home, car, and important valuables. In other words, in times of need we want our insurance company to be there for us.
Unfortunately, like all businesses, insurance companies sometimes fail. If your insurance company goes out of business, it can be a scary and uncertain situation especially if you need to file a claim. Fortunately, the state of Florida has a program in place to help protect you.
Who Will Pay My Claim if My Insurance goes Insolvent?
Most states, including Florida, have a “guarantee fund” that is used to pay funds on claims for insurance companies after they have become insolvent. The Florida Insurance Guaranty Association (FIGA) is a non-profit and state-run organization that seeks to ease the burden of policy holders by handling their claims after their insurance company has liquidated. The mission of FIGA is to provide prompt payment of covered claims, and payment of the full value of covered claims up to the limits set by law.
What Should I do to Protect Myself?
As with any claim, if your property has been damaged or destroyed, you should document it as thoroughly and accurately as possible. Take photos and write down dates, times, information about meetings with insurance agents and inspectors, and any other information related to the damage of your home that may be useful down the line.
You should also be aware that once your insurance company has declared bankruptcy, you will be dropped from the plan usually within 30 days. That means that you will need to seek coverage with another company.
Making a claim after your insurance company has gone insolvent can be difficult. It’s important to have someone on your side who knows insurance law and can help assure you receive fair and timely compensation for your claim.
Reach Out to an Experienced Insurance Attorney in Florida Today
At Johnson & Williams, P.A., we have years of experience helping clients handle claims with insurance companies. Call us today at (407) 245-1268, or contact us online for a consultation. Our lawyers serving Greater Orlando, Winter Haven and Kissimmee, Florida are ready to help you now.