Citizens Has a Sinkhole Glitch
Posted By Givens Givens Sparks || May 8, 2013
Add a computer glitch to all of the other issues Citizens Insurance has with sinkholes in Florida. Susan Taylor Martin wrote in Sunday's Tampa Bay Times that a computer problem has arisen when policyholders remove sinkhole coverage from their overall homeowner's insurance policies. Apparently, a glitch in the system arises when homeowners opt out of sinkhole coverage that charges too low of a premium to homeowners renewing their Citizens policy.
Many homeowners are choosing to opt out of sinkhole coverage, and rely solely on catastrophic ground cover collapse coverage. According to the article, Citizens has been notified of the problem, and has done nothing to fix it. In one case, the overall premium on a home had been $2,977, and the sinhkole portion of that coverage was $2,453. The new premium should have been $524, but the homeowner was only charged $246 dollars.