Quote:
Originally Posted by justjim
Exactly, the way insurance companies work. When they had to payout millions for hurracines several years ago, they raised rates, deductibles, and some pulled out of Florida entirely. These "acts of God" can cost millions in profits for an insurance company. Flood insurance has to be provided by the Federal Government.
You have to wonder just how much fraud there really was with sinkhole insurance. Remember how much power the insurance lobby has in this country.
OP, is correct about the Politicans-----but do they have the "will" to do anything about sinkhole coverage in Florida. It needs careful attention.
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When my home insurance company dropped sink hole coverage and opted for Catastrophic Ground Collapse I was furious to say the least. So I decided I would play the game and get my home inspected. Of course they still refused to reinstate sink hole coverage but I still had to try. What it did do is give me a chance to speak with an inspector that was in the middle of this problem and had been in business for a number of years. Besides the fraud the way the sink hole laws in Florida were written all I had to do is call my insurance company and complain that I have cracks in my home. Under the law that meant they had to determine if you were having a sink hole problem. The cost of the geological testing was not inexpensive and they had to pay the cost. All they needed is one sink hole in the neighborhood and guess how many other calls they were getting. So there were multiple faces to the problem so I don't blame them for what they did to correct it. However the fix went a little farther to their end. The fact is I'm still covered if the sink hole is Catastrophic. I also found an insurance broker who could get me Sink Hole Coverage. His comments was He would not recommend it. And here is why. Most sink hole policies you can get now have a deductible of 10% of the value of the house. If your house is worth $250K that is $25K out of your pocket. His statement was if it cost that much to fix the problem you probably would be covered under the Catastrophic Ground Collapse. I don't doubt the Insurance Lobby put lots of pressure on the legislators and I'm sure there was a degree of greed in the out come.