This change is due to property insurance legislation passed in the 2006 session. This legislation “reduces attorney fees and court costs associated with challenges related to sinkhole claims settlements.” The savings will come from “eliminating invalid claims, and reducing or eliminating settlement payments to circumvent litigation.”
The areas of Florida more susceptible to sinkholes will see the most savings including the counties of Pasco, Citrus and Hernando. Savings to policyholders in these areas could be as high as 4 percent in their overall premium.
I would be interested to hear from anyone that has had to deal with sinkholes and that part of their coverage.
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