Trial Bar Opposes Citizens Sinkhole Repair Program
A proposal that would facilitate the repair of homes insured by Citizens Property Insurance Corporation is gaining support but is opposed by the trial bar. The Senate Banking and Insurance Committee advanced a bill that would adopt a form of “managed repair” program for Citizens’ sinkhole claims. Citizens president Barry Gilway favors the proposal as a way of ensuring more of the money Citizens pays out in sinkhole claims goes toward repairing property. Members of the trial bar, however, oppose the program that would provide for repairs rather than monetary payments. The trial bar argues that the repair mandate will leave consumers at the mercy of contractors who may be incompetent or not sufficiently experienced in sinkhole remediation and repair. They also suggest that legislative reforms passed in 2011 have adequately addressed the alleged sinkhole claims problem. Citizens responds that while the number of sinkhole claims filed has dropped 60% following the 2011 legislation, the loss ratio on sinkhole coverage is still 380%