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Bogus Sinkhole Claims Are Newest Insurance Crisis

By: Associated Press
By: Associated Press

Tallahassee, FL - Sinkhole claims are the newest challenge for Florida insurers, regulators and lawmakers.

The Senate Banking and Insurance Committee was told Tuesday that
runaway payments on sinkhole claims cost policyholders across the
state an average of $120 last year. Sinkhole claims have tripled in
the last three years alone with two-thirds coming from a tri-county
region in west-central Florida. There were 7,245 such claims in
2009.

Since the last major hurricane hit Florida in 2005, sinkhole
claims have skyrocketed, totaling nearly $2 billion in the last
four years. Most of the claims have come from Hernando,
Hillsborough and Pasco counties.

The Legislature is being asked to eliminate loopholes in the
current law.

(Copyright 2011 by The Associated Press. All Rights Reserved.)


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