Citizens Insurance agrees to phase in hefty sinkhole rate hike

4:50 PM, Sep 12, 2011   |    comments
A massive sinkhole opens up in front of a Florida home.
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TALLAHASSEE, Fla. (AP) - Florida's largest insurer of homes and businesses, state-backed Citizens Property Insurance Corp., is lowering a proposed rate increase for providing coverage for sinkholes.

The board that oversees Citizens held an emergency conference call Monday and voted to cap rate hikes for sinkhole coverage to 50 percent in 2012 and then phase in future hikes over the next several years. Earlier this summer the board voted to increase rates for sinkhole coverage by more than 400 percent statewide and as much as 2000 percent in counties such as Orange and Hillsborough.

The move comes amid a growing backlash over the proposed rate hikes which were authorized this year by state legislators. State regulators on Tuesday are holding a public hearing in Tampa on the proposed rate hikes.

(Copyright 2011 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.)

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