FPCA Homeowners Division Members: Please Indicate Support for Pasco and Hernando County-Based Statewide Sinkhole Language Proposal
Apr 21, 2011
As discussed on the FPCA Homeowner’s Division call today, April 21, 2011:
Please review the current sinkhole statutes as they apply to Pasco and Hernando County and let us know before Monday, April 25 at 2:00 p.m. if you would SUPPORT this proposal statewide.
Chapter 627.706- Sinkhole insurance; catastrophic ground cover collapse; definitions
(5) An insurer offering sinkhole coverage to policyholders before or after the adoption of s. 30, chapter 2007-1, Laws of Florida, may nonrenew the policies of policyholders maintaining sinkhole coverage in Pasco County or Hernando County, at the option of the insurer, and provide an offer of coverage to such policyholders which includes catastrophic ground cover collapse and excludes sinkhole coverage. Insurers acting in accordance with this subsection are subject to the following requirements:
(a) Policyholders must be notified that a nonrenewal is for purposes of removing sinkhole coverage, and that the policyholder is still being offered a policy that provides coverage for catastrophic ground cover collapse.
(b) Policyholders must be provided an actuarially reasonable premium credit or discount for the removal of sinkhole coverage and provision of only catastrophic ground cover collapse.
(c) Subject to the provisions of this subsection and the insurer’s approved underwriting or insurability guidelines, the insurer shall provide each policyholder with the opportunity to purchase an endorsement to his or her policy providing sinkhole coverage and may require an inspection of the property before issuance of a sinkhole coverage endorsement.
(d) Section 624.4305 does not apply to nonrenewal notices issued pursuant to this subsection.
Please send your comments to Katie Webb (kwebb@cftlaw.com) at Colodny Fass.
