An Update on Insurance Guaranty Associations Senate Bill CS/HB 529 by Lauren S. Fallick

Governor DeSantis has approved Senate Bill CS/HB 529, which made certain changes to coverage under Florida Insurance Guaranty Association (FIGA), and this law is now in effect. But what is FIGA and what changes did this bill make?

FIGA is part of a non-profit, state-based, statutorily created system that pays certain outstanding claims of insolvent insurance companies, which aims to protect policyholders and claimants. Essentially, this new legislation, which went into effect on July 1, 2020, has amended Section 631.57, Fla. Sta., to increase the amount of coverage for property insurance claims by a condominium, cooperative or homeowners’ association under the FIGA from $100,000 to $200,000 multiplied by the number of units. Specifically, where a claim is made and the condominium or homeowners’ property insurer is insolvent, the amount of coverage that FIGA must provide for policies covering insured condominium associations or homeowners’ associations increases from a maximum of $100,000 multiplied by the number of the condominium units or other residential units to $200,000 multiplied by the number of such units. Thus, the law doubles possible claim payout that an insured could expect to receive upon experiencing a covered loss as well as the insolvency of that insured’s insurer. The law also changes the amount of emergency assessments that FIGA is authorized to levy against an insurer from a maximum of two percent of that insurer’s net written premiums in Florida for the types of insurance accounts maintained by FIGA for payment of claims, to a maximum of four percent of the same premiums. Click here to review Senate Bill CS/HB 529 in its entirety.

Lauren S. Fallick is a Partner with Haber Law. Her practice concentrates in the areas of construction law and litigation, complex commercial and business litigation, insurance coverage disputes, and real estate litigation.

Lauren represents and counsels business and property owners, community associations, real estate developers, and commercial landlords and tenants in disputes relating to the design, development, and construction of commercial, residential, and mixed-use real estate development projects, construction and repair projects, including contract disputes, construction/design defect litigation, insurance coverage disputes, payment and delay disputes, mechanic’s liens, and alternative dispute resolution

Additionally, Lauren  represents business and property owners, individuals, community associations, commercial landlords and tenants, entrepreneurs, and business entities in complex business litigation and other commercial and real estate-related disputes, including partnership, shareholder, and limited liability membership disputes, joint venture disputes, corporate entity dissolution and receiverships, technology disputes, contract disputes, business torts, insurance coverage disputes, fraud, professional liability, and claims for injunctive relief.