Sinkhole Amendment Fails in Senate

An amendment to SB 408, offered by Sen. Mike Fasano, R-New Port Richey,that would have retained the current requirement for property insurers to offer sinkhole insurance, was rejected in a 20-12 vote Wednesday.

Fasano has consistently sought to weaken SB 408 and other insurance bills aimed at shoring up the insurance market and ushering consumers away from the state-run Citizens Property Insurance. SB 408 would remove the requirement on insurers to provide sinkhole coverage, but Fasano claimed that provision would leave consumers with little option but to run to Citizens for adequate coverage. Otherwise, prospective home buyers would be forced by mortgage companies to buy expensive surplus-lines insurance, leading to unaffordable premiums, foreclosures and economic ruin for the state, he claimed.

"You want economic disaster in this state? Allow them to have a choice in offering sinkhole coverage -- because they won't. Homeowners won't be able to get coverage so they won't be able to get a mortgage," Fasano said.

But Sen. Garrett Richter, R-Naples, who is sponsoring the bill, stated the bill simply seeks to remove onerous government restrictions on the insurance industry.

"Ido not think it's a good idea to have this Legislature tell private business what they have to offer and then tell them what the cost should be," Richter said.

The bill is expected to be voted on Thursday.