Sinkhole Bill Saves Residents Money

The Tampa Tribune

Published: August 10, 2007

Regarding, 'Sinkhole Deal Could Put Pasco, Hernando Residents in Bigger Hole' (Opinion, Aug. 8). I wholeheartedly disagree with the editorialist's statement that the governor and the Legislature have made the sinkhole insurance situation worse for residents of Pasco and Hernando counties. Quite the opposite is true. The intention and the result of changes to Citizens Property Insurance Company's sinkhole policy are to provide immediate relief to the vast majority of residents who do not have any worries about sinkhole damage.

The ability of Citizens to launch opt-in sinkhole coverage in these two counties will be to give residents an immediate decrease in insurance premiums (40% or more should be expected). If a homeowner chooses to reinstate full sinkhole coverage, the premium will only return to the level that it is now. Because the Legislature froze rates earlier this year the homeowner will not pay any more than he or she pays now.

People must remember that the sinkhole problem in these two counties is one of claims, not actual sinkholes. Certain local sinkhole attorneys and public adjusters have made a good living playing off of peoples' fears of sinkholes. Cracks in walls or sidewalks led to countless claims and huge settlements with Citizens. Those settlements led to the huge increases in premiums that have burdened residents of Pasco & Hernando. The sinkhole option gives individuals the power to decide for themselves if they want to pay high and often unnecessary premiums or lower, more affordable premiums.

Whether one chooses to take the optional full sinkhole coverage or not, catastrophic groundcover collapse will still be a requirement so all insured residents will be covered should the unthinkable happen.

I believe that the only way residents of Pasco and Hernando counties were going to see any meaningful insurance relief was by creating the sinkhole option. Residents are intelligent people who can decide for themselves regarding their budget and what level of coverage they may want.

State Sen. Mike Fasano