OIR to Review Sinkhole Claims Problem
The Office of Insurance Regulation has heard reports of increased frequency for sinkhole claims, particularly in areas of Florida that are not usually identified with sinkhole problems. Mounting sinkhole losses for Citizens Property Insurance Corporation and admitted market insurers have prompted the OIR to send a data call to insurers to develop more information from which to study concerns with the frequency and severity of sinkhole claims.
The OIR’s data call asks insurers to report various information about their sinkhole claims since 2006. The OIR hopes to obtain information about the types of claims being filed, the testing procedures used to verify sinkholes, the costs of inspections, locations of claims, the costs associated with attorneys and public adjusters, and the amounts of claims attributable structural damage.
The OIR data call is being conducted as the Senate Banking and Insurance Committee continues to conduct an interim project on sinkhole losses.