IMPORTANT NOTICE REGARDING SINKHOLE INSURANCE TO ALL
PROPERTY OWNERS IN PASCO AND HERNANDO COUNTIES
PROBLEM:

There are adverse changes coming for all homeowners and commercial property owners that have property in Pasco or Hernando Counties which will have drastic ramifications in the years to come. As of SEPTEMBER 7, 2007 all policies written or renewed by CITIZENS PROPERTY INSURANCE CORPORATION as well as other insurers for both Pasco and Hernando Counties will NOT automatically include COMPREHENSIVE SINKHOLE COVERAGE.  This means you will have to “OPT IN” or purchase COMPREHENSIVE SINKHOLE COVERAGE by special endorsement to fully protect your properties.

If policyholders do OPT IN, there will be an additional premium charged for this coverage which will likely render it economically unfeasible for many Pasco and Hernando residents.  All other counties in the State of Florida will automatically include COMPREHENSIVE SINKHOLE COVERAGE unless policyholders specifically request policies that exclude it, i.e., “OPT OUT” of sinkhole coverage.

Even more problematic, while the standard policies offered to Pasco and Hernando residents will automatically exclude COMPREHENSIVE SINKHOLE COVERAGE, these polices will include “CATASTROPHIC GROUND COVER COLLAPSE COVERAGE.”  The reality is that for a sinkhole loss to meet this statutory definition of CATASTROPHIC GROUND COVER COLLAPSE COVERAGE, the dwelling must literally, suddenly and completely be destroyed to such an extent that it is immediately condemned by appropriate governmental authorities.  Bases upon our more than fifteen (15) years of experience in the industry, less than one (1) in a thousand (1000) legitimate sinkhole losses would meet this new standard.

In an effort to provide more competitive insurance quotes, we fear that insurance agents may not advise homeowners of their option to purchase COMPREHENSIVE SINKHOLE COVERAGE.  Alternatively, agents may erroneously advise homeowners that they are protected by the CATASTROPHIC GROUND COVER COLLAPSE COVERAGE which is included in standard polices.  We are not sure how the State of Florida and local officials are allowing this to happen in the two most sinkhole prevalent counties in the State.

 SOLUTION:

We highly encourage any and all policyholders in Pasco and Hernando counties to continue to procure COMPREHENSIVE SINKHOLE COVERAGE.  However, we recognize that the insurance industry will most likely make this coverage cost prohibitive.  In these times of rising insurance rates, property taxes and interest rates, many residents will be forced, due to economic considerations, to go without COMPREHENSIVE SINKHOLE COVERAGE.

STEP 1:  Examine both the interior and exterior of your home CAREFULLY for any signs, no matter how negligible, of settlement damage.  For more specific descriptions of the type of damage you are looking for please check out the following link, http://www.sinkholeinfo.com/signs.htm.  Remember, the damage need NOT be severe. 

STEP 2:  If you have ANY good faith basis to do so call your insurance agent.

If you did nothing then your policy renewed after SEPTEMBER, 2007 you no longer have coverage and no recourse if anything happens in the future unless your chose to add additional sink hole coverage.

Feel free to contact us at 888-934-9669 to discuss these new changes in the law as we will be happy to go over them with you.