Notice to Homeowners in Pasco County

IMPORTANT NOTICE REGARDING SINKHOLE INSURANCE TO ALL PROPERTY OWNERS IN PASCO AND HERNANDO COUNTIES

PROBLEM:

There are adverse changes coming for all homeowners and commercial property owners that have property in Pasco or Hernando Counties which will have drastic ramifications in the years to come. As of SEPTEMBER 7, 2007 all policies written or renewed by CITIZENS PROPERTY INSURANCE CORPORATION as well as other insurers for both Pasco and Hernando Counties will NOT automatically include COMPREHENSIVE SINKHOLE COVERAGE. This means you will have to “OPT IN” or purchase COMPREHENSIVE SINKHOLE COVERAGE by special endorsement to fully protect your properties.

If policyholders do OPT IN, there will be an additional premium charged for this coverage which will likely render it economically unfeasible for many Pasco and Hernando residents. All other counties in the State of Florida will automatically include COMPREHENSIVE SINKHOLE COVERAGE unless policyholders specifically request policies that exclude it, i.e., “OPT OUT” of sinkhole coverage.

Even more problematic, while the standard policies offered to Pasco and Hernando residents will automatically exclude COMPREHENSIVE SINKHOLE COVERAGE, these polices will include “CATASTROPHIC GROUND COVER COLLAPSE COVERAGE.” The reality is that for a sinkhole loss to meet this statutory definition of CATASTROPHIC GROUND COVER COLLAPSE COVERAGE, the dwelling must literally, suddenly and completely be destroyed to such an extent that it is immediately condemned by appropriate governmental authorities. Bases upon our more than fifteen (15) years of experience in the industry, less than one (1) in a thousand (1000) legitimate sinkhole losses would meet this new standard.

In an effort to provide more competitive insurance quotes, we fear that insurance agents may not advise homeowners of their option to purchase COMPREHENSIVE SINKHOLE COVERAGE. Alternatively, agents may erroneously advise homeowners that they are protected by the CATASTROPHIC GROUND COVER COLLAPSE COVERAGE which is included in standard polices. We are not sure how the State of Florida and local officials are allowing this to happen in the two most sinkhole prevalent counties in the State.

SOLUTION:

We highly encourage any and all policyholders in Pasco and Hernando counties to continue to procure COMPREHENSIVE SINKHOLE COVERAGE. However, we recognize that the insurance industry will most likely make this coverage cost prohibitive. In these times of rising insurance rates, property taxes and interest rates, many residents will be forced, due to economic considerations, to go without COMPREHENSIVE SINKHOLE COVERAGE.

If you find yourself among the Pasco and Hernando residents in this predicament, you may want to strongly consider the following option BEFORE you purchase or renew a policy after SEPTEMBER, 2007:

STEP 1: Examine both the interior and exterior of your home CAREFULLY for any signs, no matter how negligible, of settlement damage. For more specific descriptions of the type of damage you are looking for please check out the following link, http://www.sinkhole.org/CommonSigns.php. Remember, the damage need NOT be severe.

STEP 2: If you have ANY good faith basis to do so, IMMEDIATELY file a claim with you insurance company for possible sinkhole activity. The CITIZENS PROPERTY INSURANCE COMPANY claims number is: (866) 411-2742.

Even if you believe that you are experiencing ordinary settlement, the ultimate determination should be determined by a professional geologist. Filing a claim before your COMPREHENSIVE SINKHOLE COVERAGE lapses will effectively “GRANDFATHER” you in under the more favorable law and policy terms. If the insurance company denies your claim, Florida law provides that you have five (5) years to challenge the denial. In the interim, the fact you no longer have COMPREHENSIVE SINKHOLE COVERAGE will not in any way impact the validity of your prior claim. If the insurance company gets it wrong and the damage continues to worsen, then you can always fall back on you previously submitted claim. In effect, without paying any additional insurance premiums, you can extend your right to pursue a valid sinkhole loss for five (5) more years.

If you do nothing now, then when your policy renews after SEPTEMBER, 2007 you will have no coverage and no recourse if anything happens in the future. TIME IS RUNNING OUT.

Feel free to contact us at 813-242-6454 to discuss these new changes in the law as we will be happy to go over them with you but unfortunately at this time we will not be offering inspections due to the large amount of phone calls that will be generated.