According to the article "Sinkhole Claims Are Driving up Florida Insurance Rates, State Official Says" by Laura Green on TCPalm.com, property insurance companies in Florida are reporting a 200% increase in sinkhole claims between 2006 and 2010 with costs of over $1.4 billion.
The Florida DOI and Commissioner Kevin McCarty believe sinkhole claims are driving up insurance rates and a recent report confirms this. He is concerned because rates will never stop increasing if the problem isn't addressed. Only about 1% of the claims represent a catastrophic sinkhole, something that could swallow up a whole backyard or a SUV car.
The majority of the claims comes from Hernando, Pasco, Hillsborough and Pinellas counties, which are all known as the sinkhole belt. The report also shows a steady incrase in claims in Broward and Miami-Dade counties, which are areas not generally prone to sinkholes. Some of the claims may not be legitimate and not only is this type of fraud immoral, but they drive up the costs of insurance for everyone.
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