One of the toughest places in the Sunshine State to buy homeowners' insurance is South Florida where three hurricanes made landfall in the past two years while two other storms sideswiped the coast. The same goes true for Southwest Florida that was likewise rocked by two hurricanes in the 2004 and 2005 hurricane seasons. But with all the rhetoric in the recently concluded legislative session it largely went unnoticed that the area where homeowners find it most difficult to find private insurance is roughly 50 miles north of Tampa in Pasco and Hernando counties. Here, residents have been spared the damage from Hurricanes Wilma, Charley, and Frances. But while having avoided the damage from hurricanes, the two counties have encountered their own storm, namely a hurricane of sinkhole claims.

A Bane for Insurers

In a way, sinkhole claims present an even greater problem for insurers than other claims including hurricanes where the cause of the damage is readily apparent. Sinkholes are geological depressions caused when water erodes underground caverns and the land above shifts or collapses damaging homes and other buildings. The reason Pasco and Hernando counties have the highest number of claims is that the geological conditions are most favorable for the development of a sinkhole. The land surface and the supporting sand and clay layers are thin, leaving the limestone base close to the surface. Due to the composition of the soil, if the water table drops or water erodes the limestone layer, a depression can quickly form resulting in the total destruction of a home within days. Geologists have a good idea where sinkholes are likely to form, but it's much more difficult to accurately predict where sinkholes will occur.