The following is a post from the website of Ted Corless, Esquire at czlegal.com who asks some interesting questions of St Johns insurance company and their newer tactics. We are seeing this growing trend amongst insurance companies.
“Like many people in Florida, St. Johns Insurance Company rejected me as an insured in Hillsborough County. I suppose this is because although St. Johns is a highly profitable company, St. Johns wants to avoid paying any claims for sinkhole damage in this area. Their offer was pretty bizarre and I think, we shall see, illegal.
Why illegal? Because under Florida law, all insurers who conduct business in this state must offer sinkhole coverage. Yes, St. Johns “offered” us sinkhole coverage but only if we pass their “Sinkhole Claim Index” test. Of course, no one we can find ever passes it, and they decline everyone we are aware of. Sure, there may be people out there who pass this test after they pay for the inspection but none we can find. Why? Because I have seen one report back, which indicated no damage and nothing to indicate a high risk for sinkhole. But, St. Johns denied it anyway.
More on the St. Johns later.
As I am not in the pool of Citizens insureds, we are doing the best can. They will not insure us for the full value of our home, unless we spend $25,000 on hurricane shutters for the entire home. Also, we have to pay for an “inspection,” so that Citizens can ask a bunch of questions so they can use these answers to justify a needless examination under oath if we ever conjure the audacity of filing a claim on the miserably expensive coverage we have.
Why do I feel like a criminal? We feel this way because there is an undeclared war between St. Johns, and most other carriers, who only want our premiums if they know they are not likely to have a claim to pay. I know many of the people who have worked for St. Johns, and respect them. At the same time, can they really push me out unless I agree to waive my legally entitled coverage for sinkhole activity? I say no, and plan to prove it.”