The District Court of Appeal of Florida recently ruled that the Florida Insurance Guaranty Association (FIGA) does not have to pay attorney's fees in a settlement involving Hurricane Irma damages. This decision affects insured homeowners who rely on FIGA when their insurance companies become insolvent. The ruling clarifies FIGA's responsibilities regarding attorney's fees in similar cases.
The case, Florida Insurance Guaranty Association v. David Hintz and Judith L. Hintz, was filed under docket number 4D2025-0204 on June 17, 2026. The insureds, David and Judith Hintz, argued that their insurer should cover damages caused by Hurricane Irma in 2017. After their insurer denied the claim, the Hintzes sought a declaratory judgment and attorney's fees, leading to a settlement agreement.
The dispute began when the Hintzes filed a lawsuit against their insurer for damages to their roof. The insurer claimed the damage was due to lack of maintenance and wear and tear, thus denying coverage. The Hintzes amended their complaint to include a breach of contract claim and requested attorney's fees under Florida Statutes sections 627.428 and 626.9373. Before going to trial, the parties reached a settlement agreement, which included a total payment of $30,000. This amount was divided into two checks, one for $19,492.10 payable to the Hintzes and other parties, and another for $10,507.90 specifically for their attorney.
However, after the insurer became insolvent, FIGA took over as the guarantor. While FIGA paid the first check, it refused to pay the second check for attorney's fees. The Hintzes then moved to enforce the settlement agreement, but FIGA argued that it was not liable for the attorney's fees, claiming that these fees were not part of the “covered claim” it was obligated to pay.
The court ruled in favor of the Hintzes initially, ordering FIGA to pay the $10,507.90. However, FIGA appealed this decision. The court analyzed the case and referred to a previous ruling in Petty v. Florida Insurance Guaranty Ass’n, which stated that attorney's fees do not count as a covered claim under FIGA's obligations.
The court found that FIGA's responsibilities were limited to claims that arise from the insurance policy and are covered by it. In its opinion, the court stated, “the attorney’s fees aspect of the settlement is not part of a ‘covered claim.’” The judges involved in this ruling were May, Gross, and Klingen-smith.
This ruling has significant implications for homeowners who depend on FIGA when their insurers go bankrupt. It clarifies that FIGA is not responsible for paying attorney's fees that arise from settlement agreements, which could affect future claims and settlements. Homeowners may need to reconsider how they approach settlements with their insurers, especially regarding attorney's fees.
Additionally, this decision reinforces the precedent set by previous cases, indicating that FIGA's obligations are limited and do not extend to attorney's fees. The ruling suggests that insured parties should be cautious when negotiating settlements and ensure that all aspects of their claims are clearly defined.
Looking ahead, the Hintzes may have the option to appeal this ruling, but details about any potential appeal were not available in the court filing. The outcome of this case may influence similar cases involving FIGA and attorney's fees in the future, as it sets a clear standard for what FIGA is responsible for in terms of settlement agreements.