TALLAHASSEE, Fla. (AP) — Citing sinkhole losses and higher operating expenses, State Farm Florida asked state regulators Tuesday for a 28 percent premium increase on its homeowners' policies.
Sinkhole claims, which are approaching $2 billion over the past five years in Florida, have exploded at a great cost to the insurance industry.
Questioned by state actuary Bob Lee, State Farm executives testified that it lost $327 million in the last five years, most of it in the last two, on sinkhole claims alone. The company is dropping its sinkhole coverage in standard policies, but offering it to homeowners separately at a premium rate.
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