Sinkholes Increase Florida Insurance Rates

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.

Florida DOI Here To Help

According to the article "Florida Department of Insurance: Business Units" on economywatch.com, the Florida Department of Insurance (DOI) is committed to residents of the state of Florida to offer high quality insurance services. They offer user friendly guides for consumers which can be found online to assist residents in finding their insurance needs.

Florida DOI maintains a thorough database of all insurance companies in the state. The database also includes company profiles for more detail. Through the Florida DOI's online resources policies can be compared online which is extremely useful if you are looking for the best deal.

Another important function of the Florida DOI is to respond to customer grievances. If you find yourself being treated unfairly by your insurance company you can file a complaint with Florida DOI and they will do their best to protect consumers from insurance fraud. They research companies to ensure there is no unlawful conduct. Efficient working of the Florida DOI not only ensures the protection of consumers, but it also allows the insurance industry to thrive. California DOI and Colorado DOI have similar responsibilities.