We call it the “S” word
in our group. Bring up the Sinkhole issue to your lawmakers and “at
best” the conversation ends there and at worst you will have a fight
on your hands. They don’t always want to answer your questions. We are
asking questions and lots of them. We have had to dig hard to gather
information we feel is important for the “people” to know. So first
I will start by giving you the actual language from the Special Session
concerning sinkholes.
Every insurer authorized to transact property insurance in this state
shall provide coverage for a catastrophic ground cover collapse and
shall make available, for an appropriate additional premium, coverage
for insurable sinkhole losses on any structure, including contents of
personal property contained therein, to the extent provided in the form
to which the sinkhole coverage attaches. A policy for residential
property insurance may include a deductible amount applicable to
sinkhole losses equal to 1 percent, 2 percent, 5 percent, or 10 percent
of the policy dwelling limits, with appropriate premium discounts
offered with each deductible amount.
Last week HAC met with Florida’s Chief Financial Officer, Alex
Sink’s Consumer Advocate, General Bob Milligan. He voiced his concerns
about having “Optional Sinkhole Coverage” He felt the Citizens of
Florida need to be made aware of the pitfalls of not being covered for
sinkholes as well as being under insured and having too large of a
deductible. The reason General Milligan says we are unable to get much
information on the sinkhole legislation is it is still being worded and
the final results are not due out until presumably the first of
September. There are still issues concerning the legislation
including… whether it should be written as an “OPT-OUT” or an
“OPT-IN” The difference is this: If it is worded as an “OPT-IN”,
then those who choose to keep coverage or have mortgages that require
you to keep coverage the cost to buy sinkhole coverage will be very
high. According to General Milligan, it would be common sense that if
you have to “buy”, or “OPT-IN’, for coverage and there are less
people in the risk pool so costs for coverage will be high. However if
it is written as an “OPT-OUT” then you will receive a discount to
drop the coverage verses being punished in having to “BUY-IN” for
coverage. He suggests that everyone call, write, or e-mail your elected
officials and voice the need for an “OPT-OUT” policy. Even the Times
reported that Insurance Commissioner Kevin McCarty told them in December
he preferred that customers be given the chance to opt out, because of
the risks to people who are not well informed. Homeowners need to be
cognizant that reduced rates come with the assumption of greater risk
Another problem we have faced in speaking to some elected officials is
the fact that they have informed people that the benefit of dropping
sinkhole coverage is it will lower your “bill” between 50% and 60%.
In an e-mail I received from Carrie Vaught-Henriquez, Legislative
Coordinator, with the Office of Insurance Regulation she, states
“Sinkhole coverage and the risks related to sinkholes are not factored
into the wind portion of the
Premium; therefore the opting out of sinkhole coverage will only
decrease the “all other perils” portion of your premium” This
means only the portion of your bill that does not cover wind (hurricane)
or Flood.
We have been told by some elected officials that the “major” banks
have agreed to allow the opting out of sinkhole coverage but be warned
that not all banks will allow this, especially local banks that are
aware that we live in a sinkhole prone area. It is a shame that they
fought so hard to take away sinkhole coverage from the people to lower
premiums and did not focus more on taking the lawyers and fraud out of
sinkholes.
We at HAC have been chastised for not taking a position on the Optional
Sinkhole Coverage. We will not take a position since we do not have full
disclosure of all the ramifications that may happen. On two separate
occasions, with two different legislators, I was ‘yelled at’ by both
of them and called a media hog by one of them. All of this was in an
effort to seek more information.
HAC will not take a sinkhole coverage position until we see the final
product. We feel that backing it before all the facts are in could be
disastrous and similar to last year’s Legislation of SB1980 that was
voted on without knowing all the terrible consequences. Later it
required calling a Special Session at great cost to the taxpayers to
repeal this terrible bill.
As far as being “media hogs”, HAC tries to provide the best
information to the people so they are informed. No one person on the
board has any hidden agenda, nor is paid any money; it is all volunteer
work from concerned Citizens. Occasionally we are not 100% correct in
our reporting and this is due to the fact that by the time we get the
information it has already been changed. It is the responsibility of our
elected officials to give us the correct information rather than argue,
yell, or bash us for not knowing. I think that they sometimes forget
that THEY work for US and WE pay their salaries. They should not be
allowed to tell any consumer they will not discuss ANY issue concerning
the State of Florida. We elected them and we can un-elect them in the
future if they do not do their jobs and work “for the people”.
In closing I would encourage each and every citizen to “get
involved”. Don’t be afraid to ask question and dig for the truth. We
at HAC applaud the efforts of our Governor this week in Washington on
his efforts for a National Catastrophic Disaster Fund and his continued
efforts in seeking more rate relief for the people of Florida. We also
are thankful for all the work going on in Tallahassee and Senator
Fasano’s information to us on the House Glitch Bill which would have
un-done good legislation passed in Special Session. We also ask for
everyone’s support in getting HB1267 passed through its next
committee. This bill is very consumer friendly and will help eliminate
“pup” companies, keep the rate freeze for another year, and expand
Citizens to help create competition in the industry. We at HAC are a
non-partisan group and may back an elected official on one thing and
oppose them on another; we will only back things that will mean rate
relief without back-door openings for the insurance industry, or hidden
agendas for politicians.
Ginny Stevans, President
HAC (Having Affordable Coverage)
Virginia
Stevans
9530 Lakeview Drive
New Port Richey, Florida 34654
vstevans@tampabay.
rr.com