Friday, june 19, 2009
Change In Florida Law Could Allow Private Insurers To Withdraw Sinkhole Coverage On Policy Renewals
By: Brett Henson
Florida legislators are contemplating changes to the policy requirements for homeowner's insurance carriers that provide sinkhole coverage. Under the current law, authorized insurers in Florida are required to provide coverage for catastrophic ground cover collapse, and an additional premium for sinkhole losses on attached structures and personal property Fl. Stat. ยง 627.706(1). Florida homeowners have the option of purchasing policies from private insurers or the state-run Citizens Property Insurance Corporation. The proposed changes would allow private insurers to automatically drop sinkhole coverage upon renewal of the policy, unless the homeowner requests otherwise. This practice is already in place for homeowners insured by Citizens. Proponents of the bill include Senators Mike Fasano and John Legg, from New Port Richey, FL. According to Fasano and Legg, the prevalence of sinkhole damage to properties in Hernando and Pasco counties has contributed to the exodus of private insurers, such as State Farm. The Senators argue that allowing private insurers to exclude sinkhole coverage in policy renewals would encourage private insurers to continue to write policies in the state. Critics of the bill argue that it will leave consumers exposed to property loss resulting from sinkholes, and that such coverage should be necessary rather than optional.
The attorneys at Yesner & Boss, P.L., are prepared to handle claims relating to sinkholes. Insurance proceeds resulting from sinkhole damage can provide leverage in negotiating with banks for the payoff of a mortgage. Further, if you have received an initial payout under the policy for sinkhole damage, you may be entitled to accrued interest from the date of loss if the claim was processed for less than the readjusted amount. If you are facing foreclosure, or have sinkhole damage at your property, contact our office for a free consultation.