Sinkhole Insurance Rates to Increase-Estimate As High As 254 Percent

July 16, 2012

Tropical storm Debby created hundreds of sinkholes across the Big Bend area. Now an insurance company wants to increase rates for these issues.

Citizens Property Insurance Corp., a group backed by the state, says it needs to increase sinkhole rates by 254 percent next year.

Citizens met with the insurer's governing board today as they looked to finalize rate requests for 2013. Citizens says it needs to increase homeowner's policies by a little more than 15 percent but will only ask for a 7.5 increase because there's a 10 percent cap. The board will vote next week on what rate increase they will request from the office of insurance regulation.

The board is moving toward shedding thousands of policies because of the increase. Governor Scott says the company's rates are pretty low and wants to downsize Citizens Property Insurance Corp.

Many homeowners are saying they need to leave the state because the rates for insurance in Florida are too high.

Florida saw severe sinkholes in Live Oak earlier this month, and more are continuing to appear in Suwannee County.

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