Florida Senate Sinkhole Report Addresses Potential Coverage Solutions
Jan 3, 2011
The Florida Senate published its Interim Project Report (“Report”) on sinkholes today, January 3, 2011, in which it outlined extensive recommendations designed to aid decision makers in their consideration of various public policy choices related to sinkholes.
The Report provides a review of Florida laws and academic studies related to sinkholes, an analysis of sinkhole claims and costs, a review of single-peril residual market facilities and a summary of problem areas relating to sinkholes.
According to the Report, there are two basic directions Florida’s Legislature could take in addressing sinkhole coverage:
- Consider the sinkhole peril to be fundamentally an uninsurable risk and establish a sinkhole repair program that, by its creation, would eliminate major cost drivers and help restore the solvency of the private market and Citizens; or
- Leave sinkhole coverage in the private insurance market, but make substantial changes directed at removing the current cost drivers.
To view the complete Report, click here.
Should you have any questions or comments, please contact Colodny Fass.