Glossary · Insurance

FIGA (Florida Insurance Guaranty Association)

The safety net when a Florida property insurer fails, with caps every policyholder should know.

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Quick definition
FIGA — the Florida Insurance Guaranty Association — is the statutory safety net that steps in to pay covered claims of insolvent Florida property & casualty insurers, funded by assessments on the industry that carriers may pass through on policies. Protection is real but capped by statute (per-claim limits, with special treatment for certain claim types), so a claim against a failed insurer can recover less than the policy promised — one reason an insurer's financial strength is part of shopping, not just its price.

What triggers FIGA

When a Florida property insurer is ordered liquidated, FIGA assumes its covered claims — the homeowner doesn't chase a bankruptcy estate. The association handled waves of such claims during the market's distressed years; the recent stabilization (new carriers entering, rate filings falling) is the other side of that history.

The caps

Statute caps FIGA's payment per covered claim, with distinct treatment for certain categories (like unearned premium). A large loss can exceed the cap — the gap doesn't disappear; it becomes a claim against the insolvent estate with uncertain recovery. Knowing your carrier's financial ratings and the cap structure is prudent, particularly at high dwelling values.

The assessments on your policy

FIGA funds itself through assessments on member insurers, which carriers may recoup via policy surcharges — the 'FIGA assessment' line seen on Florida policies in recent years. Assessment levels change as insolvency costs are paid down; they are set in public orders, not by your carrier.

Common questions.

What happens to my claim if my Florida insurer goes under?
FIGA assumes covered claims of the liquidated insurer, paying up to the statutory caps. Amounts above the caps become claims against the insolvent estate.
Does FIGA cover Citizens policies?
Citizens is the state-backed insurer with its own statutory framework and is not a FIGA member in the ordinary sense — its obligations are handled under its own structure, including its own assessment mechanisms.
Why is there a FIGA line on my premium?
Carriers may pass through the assessments that fund the association's insolvency costs. The line reflects industry-wide events, not your individual risk.

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