We rely on our insurance providers to be there when we need them most, but sometimes that isn’t the case. Several insurers have declared insolvency in the past six months. Many Florida homeowners and others have been left wondering what happens next, and whether they will be insured if anything should happen to their homes. Thousands will have to seek out new property insurance, which may come at rates that are out of their financial reach.
Florida Insurance Guaranty Association
On June 15, the Second Judicial Circuit Court in Leon County entered an order of liquidation for Southern Fidelity. The order activated the Florida Insurance Guaranty Association (FIGA).
Nearly 80,000 policyholders have now begun to ponder what to do. Individuals who have long been policyholders and live on fixed incomes feel the devastating financial pinch and emotional impact, especially at the onset of hurricane season. If anything should happen to their homes while they are uninsured, it could cause financial disaster.
Established in 1970, the nonprofit corporation handles all claims of insolvent property and casualty insurance companies. Under the order, the Florida Department of Financial Services will process policy records. Then, FIGA will return unearned premium claims approximately two months after the liquidation date.
Individuals and businesses
Bankruptcy can affect both companies and individuals, often simultaneously. Regardless of its origin, the financial and emotional impact of a bankruptcy sometimes casts a long shadow. Attorneys who can assess and understand whether to consider bankruptcy as a legal option can benefit you in the short-term and in years to come can offer guidance.