On October 2, 2019, Florida Specialty Insurance Company ("FSIC") was ordered liquidated by the Second Judicial Circuit Court in Leon County, Florida. The Florida Department of Financial Services ("Department") is the court appointed Receiver of FSIC. A copy of the liquidation order for FSIC is available on the Department's website, www.myfloridacfo.com/division/receiver.
With the entry of the liquidation order, the Florida Insurance Guaranty Association (“FIGA”) was activated to respond to and oversee the liquidation proceedings of FSIC.
If you are currently a Florida Specialty Insurance Company Policyholder, make note of the following:
- FSIC's insurance policies are cancelled effective 12:01 a.m. on November 1, 2019, unless otherwise terminated prior to that date.
- Your current agent was made aware of the liquidation on October 3, 2019 and they were instructed by the Florida Department of Financial Services to work hard to find replacement coverage for you in the private market.
- If your agent cannot find replacement coverage for you in the private market, Citizens Property Insurance Company ("Citizens") will provide you with a guaranteed offer of coverage, but you must bind the coverage using the process Citizens has put into place and with your current agent. There will be no lapse in coverage if you utilize this method. To learn more about Citizens gurantee offer of coverage visit www.citizensfla.com/floridaspecialty or call Citizens at (888) 685-1555.
- The deadline for filing claims in the FSIC receivership proceeding is 11:59:59 p.m. on October 2, 2020.
- The Florida Insurance Guaranty Association ("FIGA") is designed to offer protections for policyholders insured by an insolvent insurer who is/was authorized and admitted by the Florida Department of Financial Services prior to insolvency. FIGA will help pay outstanding claims for FSIC policies as well as issue unearned premium refunds to policyholders who have pre-paid portions of their insurance premiums.
- The processing and payment of pending covered claims will be made by FIGA (subject to the lesser of policy limits or FIGA's maximum cap). The maximum amount FIGA will cover is $300,000, with special limits applying to (1) damages to structure and contents on homeowners' claims and (2) condominium and homeowners' association claims. For damages to structure and contents on homeowners' claims, the FIGA cap is an additional $200,000. For condominium and homeowners' association claims the cap will be $100,000 multiplied by the number of units in the association. No claim will be paid more than this cap. All claims are subject to a $100 statutory deductible over and above any deductible identified in the FSIC policy. FIGA will not pay any claims occurring after the cancellation of your policy.
- FIGA will pay covered unearned premium claims after the Florida Department of Financial Services completes its processing of the policy records and sends the unearned premium records to FIGA. A $100 statutory deductible will be taken from the amount owed to you. If you elect to obtain coverage from Citizens using the process they have put forth, any unearned premium owed to you will instead be sent directly to Citizens by FIGA and applied to the new policy with Citizens.
- If you have further questions regarding the insolvency of Florida Specialty Insurance Company, please refer to the numbers posted below and reach out to the appropriate department for assistance:
- FSIC Customer Service: 1-866-554-5896
- FSIC Claims Service: 1-941-210-5670
- Florida Department of Financial Services: 1-800-882-3054 OR 1-850-413-3081
- Citizens Property Insurance Corporation: 1-888-685-1555
- Current clients of Evolve Insurance: 1-941-244-2760
This is never good news for a Florida resident to hear right in the middle of Hurricane Season. Fortunately our agency is prepared and can offer you a quote to replace your current coverage issued by Florida Specialty Insurance Company. Our agency has relationships with multiple admitted and authorized insurance carriers who are financially stable and ready to provide you with the peace of mind you need and deserve. To stay covered and protected, start by visiting us online at evolveins.com or call our office at 941-244-2760 and ask to speak with an agent today.
David Kronk, Principal Agent, Evolve Insurance Agency