New Policy Expected To Ease Insurance Cost

It won't be much, but Florida homeowners -- especially those in Pasco, Hernando and Citrus counties -- soon will see a dip in their skyrocketing homeowners insurance costs.

New policies announced Thursday allow insurance companies to charge higher deductibles for sinkhole coverage. Backers say the changes will make coverage more affordable and eliminate fraudulent claims if people have to pay more money out of pocket to claim their home sits on a sinkhole.

The savings will apply to the sinkhole coverage portion of a homeowner's insurance policy; in some cases, that can amount to as much as 14.4 percent.

The effect will be most significant in the Suncoast area -- especially sinkhole-riddled Pasco County, said Bob Lotane , a spokesman for the state Office of Insurance Regulation.

This year, state Sen. Mike Fasano, R-New Port Richey, and state Rep. John Legg, R-New Port Richey, pushed through legislation requiring the state to re-evaluate how companies assess rates, especially in regard to sinkholes.

The policy change announced Thursday came out of those bills.

"I don't want people to believe they're going to see hundreds of thousands of dollars in reduction, but what they will see is a small reduction," Fasano said. "In the future, they will see more reductions down the road."