FLORIDA SEES NEW LAW IN EFFECT FOR SINKHOLE COVER

A new law took effect in Florida on September 1 that allows property insurers to make cover for sinkholes optional. For those policyholders opting out, homeowners’ cover will be less expensive but there will be no cover for cracked walls or foundations arising from land subsidence. For those customers, sinkhole-related claims will be paid only in cases where a house is determined unlivable and is condemned by a state agency. The law took effect on Saturday for new customers of last resort carrier Citizens Property Insurance, and will take effect for Citizens’ renewals from October 1.