Silence deafening on bank’s rescinding sinkhole requirement
When Citizens Property Insurance had its sinkhole rate hearing in September, there were people ginning up the hubbub by proclaiming that “people would lose their homes because lenders required sinkhole coverage.” I put those words in quotes since they were spoken by some to fan the flames of public anger over the need for Citizens to get sinkhole rates in line with sinkhole claims being paid out. Truth be told, there appeared to be only one lender that required what we know as optional sinkhole coverage, and that was U.S. Bank. Earlier this month, U.S. Bank rescinded the sinkhole insurance requirement. You’ve probably not heard a peep about that.
It appeared that U.S. Bank stood alone in requiring optional sinkhole coverage as a requirement of its mortgagees. And, obviously, someone finally explained to them that the difference between catastrophic sinkhole coverage and comprehensive sinkhole coverage is the difference between a hole in the ground and a crack in the driveway.
It never seemed fair, at least to me, to blame the state-run insurer for wanting sinkhole rates to match payouts, yet placing no blame on a mortgage company that misunderstood how Florida mandates for sinkhole insurance work. Now, they apparently understand—and the people who bought sinkhole coverage when they didn’t really need it will blame—whom? Citizens Property Insurance? Not fair.
Here’s a link to the bank’s update on sinkhole coverage: Sinkhole Coverage Update for the State of Florida 2011-48