Sinkholes are big business for lawyers, public adjusters
There's a rising tide of media reports covering the sinkhole threat facing Florida's homeowners. Don't believe the rhetoric that we have a sinkhole crisis in Florida, because we don't. The more accurate assessment is we have a sinkhole claims crisis that has created a cottage industry that now threatens Florida consumers.
The Office of Insurance Regulation, recently reported to the Senate Banking & Insurance Committee that annual sinkhole claims increased from 2,360 in 2006 to 7,245 in 2009, totaling 24,671 claims throughout that period.
What's more troubling is OIR discovered sinkhole claims have surfaced in areas not historically wrought with sinkholes, like Miami-Dade and Broward counties. The number of claims from these two counties in 2009 was seven times what it was in 2006.
There is no geological cause behind these significant increases in claims, especially in areas that are not generally subject to sinkhole activity like South Florida. Yet, more than $1.4 billion in sinkhole losses were incurred over this four-year period beginning in 2006.
by Don Brown - Sun Sentinel
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