The board of Citizens Property Insurance Corp. later this week will consider new sinkhole rates to propose to state insurance regulators, with the company’s staff recommending an average 428 percent statewide increase for sinkhole coverage.
The St. Petersburg Times reported Monday on the staff recommendation, and quoted Citizens Spokeswoman Christine Ashburn saying they’re necessary to cover sinkhole claims, which have ballooned in the Tampa Bay area in the last decade.
“We’re pushing $1 billion in sinkhole losses over the last nine years,” Ashburn told the Times. “And when we build out rates going forward we look at that actual data. The numbers are what the numbers are. This is what our actuaries believe is appropriate for the exposure we have on sinkholes.”
In some areas the increase would be much higher: the Times reported that rates in Tampa and in Pasco County could go up more than 2,000 percent.
The Citizens board meets by conference call on Wednesday and will consider the issue.
