Ponte Vedra Beach, Florida homeowners insurance customers, along with most Floridians, are trying to get  insurance reimbursements for the massive sinkhole problems.  Many state lawmakers are considering measures to punish fake claims and try to ensure that home insurance policy proceeds are used to repair properties that really need the work. 

Many local and state authorities are increasingly concerned that a huge portion of the house owners pursuing sinkhole claims are using the insurance payments to pay off mortgages, rather than make fix their homes. In addition, local authorities say, some homeowners are getting their home appraised at a lower value due to the unrepaired damage, damaging all of the neighborhood prices and tax bases.

Florida sinkhole claims are on the rise and have truly increased dramatically since the early 2000’s. Most worry that this will  lead to huge rate increases for homeowners broadly and could weaken some of the smaller insurance companies that we need in the state. 

Statistics show that the average closed sinkhole claim in Florida exceeds $135,000, according to a November report by insurance regulators in Florida. Data compiled by regulators and county tax authorities indicate less than half the $1.3 billion paid out by insurance companies over the past four years has been used to plug sinkholes or shore up foundations.  The Florida sinkhole problems continue.  Please give us your feedback on this situation.

Ponte Vedra Beach, Florida –

The commissioner, Mr. McCarty, of Florida recently recommended that the state starts a survey process that has all of the Florida homeowners insurance carriers in the state figure out what is going on with the sinkhole claim issue.  Sinkhole claims in Florida are on the rise and make up the largest non-catastrophic cost drives for the state.  Many of the carriers in Florida will not cover you for sinkholes if you aren’t in the coverage area.  Make sure you ask your homeowners insurance broker to see If this coverage is available for house. 

We know that the issue of these sinkhole claims are a major issue and are becoming more frequent.  Carriers are shelling out thousands of dollars to cover homes that are being hit with the sinkhole damage.  So many in fact, that a variety of carriers are being hit pretty hard these days and now do not offer this much needed line of coverage. 

The Florida Department of Insurance is letting the general public of Florida know that they do not have sufficient data to know if this is a huge problem or not, but are going to continue to get to the bottom of this issue.  We know that in the past few years that more sinkhole claims have been paid out than hurricane claims.  Many are wondering how that could be possible. 

In the event of a sinkhole claim, be sure to follow up with your carrier in an appropriate manner.  Many insurance carriers in Florida follow a variety of methods to check on sinkhole claims to determine the final damages that are to be paid.  You might see them send a scientist to study the severity of the damage before your claim is paid.  Make sure you are getting the full value of your claim when a sinkhole is the issue.  Learn more about sinkhole coverage in our Florida homeowners insurance glossary of terms.  Here you can review a variety of important aspects to you homeowners insurance policy.