NU Online News Service, Nov. 9, 2:11 p.m. EST
A new report from the Florida Office of Insurance Regulation (OIR) appears to confirm what insurers in the state have been saying about the problem that sinkhole claims have become.
The findings from 211 insurers that responded to the OIR's recent data call indicate there is an increase in sinkhole claims, and the reported sinkholes are coming from places in Florida where they have not previously been an issue.
The OIR said it asked for sinkhole claim information from 2006 to 2010 and got data from a total of 24,671 claims–8,959 open claims and 15,712 closed claims.
The total cost of the claims was about $1.4 billion and increased from $209 million in 2006 to $406 million in 2009, the report says.
Of the claims, 66 percent came from what is known as the "sinkhole belt" consisting of Hernando, Pasco and Hillsborough counties. But claims reported from Miami-Dade and Broward counties have increased 4.2 percent thus far in 2010. Plus, total loss and expenses are up to about $3 million from less than $250,000 in 2006.
Sinkholes are one of a handful of factors driving down underwriting income for Florida's property insurers, according to reports from the industry and the OIR.
In late September the OIR approved an average statewide homeowners insurance rate increase for the state-run Citizens Property Insurance Corp. of 10.3 percent, partially due to increased costs associated with sinkhole claims.
The industry chose to give up on measures by lawmakers to address the sinkhole claims issue in order to give this year's omnibus property insurance bill a better chance of passing. The bill was supported by legislators but vetoed by Gov. Charlie Crist.
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