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Citizens blames sinkholes for rate hike

September 08, 2010 11:15AM

State-run insurance company Citizens is facing a new kind of problem:
sinkholes. A sharp increase in claims involving damage caused by
collapsing earth has contributed to Citizens’ request for an average
statewide hike of 8.4 percent, the firm told regulators Tuesday. There
have been around 300 such claims in South Florida, where sinkholes
aren’t usually found. Rates could rise in some parts of Miami-Dade and
Broward counties, but could drop in coastal portions of the counties. A
ruling could come later this month. In 2009, the company collected about
$19.6 million in premiums for sinkhole coverage, but covered losses
worth about $97 million. [Miami