Florida Sinkholes
Oct 13, 2004

Insurer Harried by Sinkholes

For three years, insurers have increasingly shunned sinkhole-prone properties and even neighborhoods in the Tampa Bay area, forcing homeowners to buy more costly insurance from the state-run insurer of last resort. Last year, Citizens paid out $6-million in sinkhole claims; this year, it anticipates paying $25-million. Next year, $40-million to $50-million in sinkhole losses. The reinsurance idea is expected to be among the recommendations coming out of a pending sinkhole study by Florida State University.