If you’re a Florida resident, you may have heard of the state guaranty fund for title insurance companies. This fund is set up to protect policyholders in the event of a title insurance agent, underwriter, or agency insolvency or bankruptcy. Here’s what you need to know.

The Florida state guaranty fund for title insurance companies, also known as the Florida Title Insurance Guaranty Association (FTIGA), was created in 1987 by the Florida Legislature after passage of R.S. 626.11. FTIGA is a nonprofit corporation that exists solely to protect the interests of policyholders who are affected by an insolvency or bankruptcy of a title insurance agent, underwriter, or agency.

FTIGA is funded by assessments on title insurers and premiums paid by policyholders. The state guaranty fund is not funded by taxpayers, so it is not a form of insurance protection by the government. Rather, it is an additional protection provided by title insurers to give a second layer of financial security to policyholders.

FTIGA provides protection to policyholders up to a maximum of $500,000 per title insurance policy. If a policyholder experiences a loss due to the insolvency or bankruptcy of a title insurer, FTIGA will pay the policyholder up to the maximum amount of $500,000. The policyholder must still file a claim with the title insurer and then with FTIGA to receive the payment.

However, the FTIGA is not a substitute for title insurance. It should not be viewed as an extra layer of insurance protection. It is only triggered when the title insurer is unable to meet its obligations to policyholders due to insolvency or bankruptcy.

In summary, the state guaranty fund for title insurance companies in Florida is a nonprofit organization that exists to protect the interests of policyholders in the event of an insolvency or bankruptcy of a title insurer. FTIGA is funded by assessments from title insurers and premiums paid by policyholders and it provides protection up to a maximum of $500,000 per title insurance policy. It is important to note that the FTIGA is not a substitute for title insurance and should not be viewed as an extra layer of insurance protection.