Florida Sinking in Politics? Sinkhole Coverage May Not Be Required

By: Mike Vasilinda Email
By: Mike Vasilinda Email

If your house falls into a sinkhole, it is considered catastrophic ground cover collapse under insurance legislation steaming through the state Senate, and it would be covered. But insurance companies would not have to offer coverage from cracks that develop because of shifting ground. State Senator Mike Fasano spent most of Wednesday morning trying to convince the Senate to require coverage of both cracks and collapse.

“You will have people who want to buy a home in this state, that will not be able to get sinkhole coverage,” Fasano said. “Therefore, they will not be able to get sinkhole coverage.”

Sinkhole losses have sky rocketed in recent years. Sponsor Garrett Richter says many of the claims are fraudulent.

“Policyholders are receiving checks, large checks for small cracks,” Richter said. “They’re taking these checks, they’re not repairing the property. They’re taking these checks, they’re paying their mortgage off, they’re buying a boat.”

Fasano lost the fight, for now.

Right now, the House still wants to require sinkhole coverage, so let the negotiations begin.

Richter believes insurance companies will offer the sink hole coverage, even if it is not required. We asked what would happen if he was wrong.

“If I’m wrong? Then there is an insurer of last resort, as designed,” Richter said.

If the Senate wins out and only catastrophic collapse ends up being required, thousands of homeowners could be forced into state run Citizens, or non-regulated out-of-state companies as early as June.

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  • by Steve Location: Marietta, Ga. on Apr 28, 2011 at 12:20 PM
    Florida Native! Working out-of state. Low life politicians! What do these things have in common? Not one thing!
  • by Steve Location: Marietta, Georgia on Apr 28, 2011 at 12:08 PM
    What kind of a punk, is this Garrett Richter? What do loser politicians do, other than to create a whirlwind of controversy, over sinkholes, global warming, and trade deficits...Nothing. They are just losers, and trust me on this...I am a 1st. amendment, type, and really really, a 4th. amendment type, but this guy should just sit down, and close his pie hole. He's a Loser. Thanx. Steve
  • by Franklin Thompson Location: Tallahassee on Apr 28, 2011 at 09:17 AM
    Just a heads up: Catastrophic Ground Cover Collapse includes sinkholes if such collapse creates a condition where the property is uninhabitable and condemned. Sinkhole Coverage, which is bought separately, does not require that the property be condemned and uninhabitable. This is not new. It's been like this since 2007.
  • by me Location: tally on Apr 28, 2011 at 07:22 AM
    All houses, driveways and slabs(especially garages) crack whether you are on a sinkhole or not. The insurance adjusters know this, the concrete contractors and general contractors know this. The concrete contractors do their best to "make it crack" in seams. If they have to pay for the cracks...premiums will skyrocket. Insurance companies will be actively pursuing the GC in liability suits. Yeah, you can repour the driveway, but it will crack again.
  • by Thom on Apr 28, 2011 at 06:27 AM
    SOoooo, because some (but not most) of the claims are fraudulent, we are going to allow insurance companies to charge the same premium and offer less coverage. The fleecing of the working, middle class continues. But, that is not surprising.
  • by Wilhem Location: Tallahassee on Apr 28, 2011 at 06:25 AM
    You Republicans are idiots. Tax cuts for the rich, more taxes for the poor, unemployed state workers, repealing of safety policies, even deregulating our water treatment policies. The death of America by the rich.
    • reply
      by Get Real on Apr 28, 2011 at 08:06 AM in reply to Wilhem
      Elimination of taxes and mandates reduced healthcare coverage by 70%($130 for my policy). Call Cover Florida and get a quote........idiot. Which is less than Europe's single payer. Nice to see the government "profiting" off peoples healthcare.
    • reply
      by Franklin Thompson on Apr 28, 2011 at 09:12 AM in reply to Wilhem
      Tax cuts for the rich. Can't you libs come up with anything else? If there are tax cuts, everyone who pays taxes gets them.
      • reply
        by Anonymous on Apr 28, 2011 at 12:25 PM in reply to Franklin Thompson
        It is a broken record.
  • by Anonymous on Apr 28, 2011 at 06:23 AM
    This is more like Florida [stinking] in politics.
  • by Larry Location: Tallahassee on Apr 28, 2011 at 06:09 AM
    And what exactly will be the insurance of last resort Mr. Scott when you abolish the current insurance of last resort?
  • by TMP Location: Tallahassee on Apr 28, 2011 at 05:37 AM
    My mortgage holder has specifically stated that catastrophic ground collapse coverage is NOT sufficient and that I MUST have sinkhole coverage to keep my mortgage. They even made me prove I had the right coverage.
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