sinkholes florida

Citizens to reinstate sinkhole coverage for some Florida homes

Tuesday, April 2, 2013

The largest home insurance carrier doing business in the state, Florida Citizens Property Insurance Corp., is looking reinstate sinkhole coverage for homeowners.  Most sinkhole coverages were dropped due to state legislation over the past couple of years.  Did your sinkhole coverage get dropped this past year?

Citizens board of directors has approved the changes that would let there be coverage for a variety of risks.  Some of these acceptable risks would include coverage sinkholes for new house contraction.  If you have either a mobile home or are building a new house, you might be-able to obtain sinkhole coverage.   Do you know if your policy currently covers sinkholes?  

A few years back, the legislature in Florida approved a new law called SB 408.  This was a bill that aimed to reduce exposure for the largest insurer in the state, Citizens, but left many homeowners uneasy, as they didn't have full coverage, i.e. sinkholes.  Citizens is the last resort for most homeowners in the state, but they are a necessity, with many of the private insurance companies only wanting to insure quality risks.  

These new changes will still have to be approved by FLOIR.  It will be interesting to see what they have to say on the subject of sinkholes.  What are your thoughts? Are they a major problem in Florida?

by Morgan Moran

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State Farm To Increase Rates in Florida

Jacksonville Florida Homeowners Insurance News

The large homeowners insurance company, State Farm of Florida,  has just requested a 28 percent increase on homeowners insurance rates due to many sinkhole claims in the Sunshine State. This request comes as many Florida lawmakers are trying to fix the sinkhole issue occuring in the state.  There will be a legislative session which convenes March 8, 2011 to try and come up with a solution for the rising costs of homeowners insurance in Florida. 

Forida State Farm spokesperson Chris Neal recently said that the push for the rate request is the rise in the insurer’s non-catastrophe losses, which have increased by over 90 percent over the last few years. By far, he said, the majority of that increase is due to the rise in sinkhole losses. In 2007, the carrier paid out just $47 million in sinkhole claims, a figure that has increased steadily with the carrier paying out over $119 million in the first three quarters of 2010.

Read more today at:  http://www.insurancejournal.com/news/southeast/2011/02/01/182926.htm

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