Post by L Roebuck on Dec 23, 2005 8:24:41 GMT -5
Legislators to consider sinkhole insurance coverage
By Lea Ann Overstreet
MTCN Staff Writer
The state legislature will soon get involved with the problem that has devastated a Portland couple.
Troy and Yvonne Givens lost their home when a sinkhole collapsed under them Nov. 29. Since that time, the couple has learned that their Hartford Insurance policy will not cover them for the disaster. So while the two lean on their family for support, State Rep. Mike McDonald, D-Portland, is taking the situation to the legislature.
“I have filed a bill that would have all insurers cover sinkholes,” McDonald said.
McDonald’s bill says that every insurer authorized to transact property insurance in this state must make sinkhole coverage available for any structure, including the personal contents contained in that structure as provided in the coverage.
“If this passes in the General Assembly, then insurance companies that do business in Tennessee would have to make sinkhole coverage available,” McDonald said.
Hartford Insurance spokesman Joe Loparco says that the company does provide sinkhole coverage for some states, but Tennessee is not one of them.
“Our standard homeowners policy in Tennessee does not offer sinkhole coverage. We did look into Hartford making this coverage an optional purchase, but our approach was not approved by the state of Tennessee,” Loparco said. “So for us as a company we excluded that risk just as a business decision to keep our rates competitive.”
“It is clearly listed as an exclusion in our policy because we want people to know what they have purchased. And it is a state-by-state issue ... it just depends on the arrangement and underwriting we’ve been able to do in that particular state,” Loparco added.
The Department of Commerce and Insurance has to approve what insurance companies offer to the public, McDonald said.
“The industry is regulated by state government,” he said.
That’s why McDonald is taking this cause straight to the lawmakers.
“I think this is something for the people across the state. Sinkholes are not unique to Portland or Sumner County.
“This karst geography is all over Tennessee so I believe we’re going to have a lot of support for this bill,” McDonald said.
The General Assembly will meet again in January.
“We go back Jan. 10 for a special session dealing with the ethics legislation, but as soon as that is finished all these other bills will come up,” McDonald added.
In the meantime, the Givenses are staying with their son, Randy, and his family.
“They’re doing pretty good but still waiting to see what’s going to happen,” Randy Givens said.
Local Hartford representative Paul Fuqua says attorneys are reviewing the Givenses’ insurance policy to determine if there is any way to cover them for their loss.
Randy Givens says a local couple has offered a house to his parents to stay in for the winter and they plan on moving in after Christmas.
“The support they’re getting is amazing ... people have been real good,” he said. “The outpouring of love is unreal and right now that’s all they have is the help and love of other people.”
A fund has been set up for the Givenses at Cumberland Bank, and there is a benefit scheduled for the couple Jan. 14. Charles Givens, Troy’s brother, at Vic Jenkins Chevrolet, said more information would be made available as guests for the benefit are confirmed.
The News Examiner
United States House of Representatives
By Lea Ann Overstreet
MTCN Staff Writer
The state legislature will soon get involved with the problem that has devastated a Portland couple.
Troy and Yvonne Givens lost their home when a sinkhole collapsed under them Nov. 29. Since that time, the couple has learned that their Hartford Insurance policy will not cover them for the disaster. So while the two lean on their family for support, State Rep. Mike McDonald, D-Portland, is taking the situation to the legislature.
“I have filed a bill that would have all insurers cover sinkholes,” McDonald said.
McDonald’s bill says that every insurer authorized to transact property insurance in this state must make sinkhole coverage available for any structure, including the personal contents contained in that structure as provided in the coverage.
“If this passes in the General Assembly, then insurance companies that do business in Tennessee would have to make sinkhole coverage available,” McDonald said.
Hartford Insurance spokesman Joe Loparco says that the company does provide sinkhole coverage for some states, but Tennessee is not one of them.
“Our standard homeowners policy in Tennessee does not offer sinkhole coverage. We did look into Hartford making this coverage an optional purchase, but our approach was not approved by the state of Tennessee,” Loparco said. “So for us as a company we excluded that risk just as a business decision to keep our rates competitive.”
“It is clearly listed as an exclusion in our policy because we want people to know what they have purchased. And it is a state-by-state issue ... it just depends on the arrangement and underwriting we’ve been able to do in that particular state,” Loparco added.
The Department of Commerce and Insurance has to approve what insurance companies offer to the public, McDonald said.
“The industry is regulated by state government,” he said.
That’s why McDonald is taking this cause straight to the lawmakers.
“I think this is something for the people across the state. Sinkholes are not unique to Portland or Sumner County.
“This karst geography is all over Tennessee so I believe we’re going to have a lot of support for this bill,” McDonald said.
The General Assembly will meet again in January.
“We go back Jan. 10 for a special session dealing with the ethics legislation, but as soon as that is finished all these other bills will come up,” McDonald added.
In the meantime, the Givenses are staying with their son, Randy, and his family.
“They’re doing pretty good but still waiting to see what’s going to happen,” Randy Givens said.
Local Hartford representative Paul Fuqua says attorneys are reviewing the Givenses’ insurance policy to determine if there is any way to cover them for their loss.
Randy Givens says a local couple has offered a house to his parents to stay in for the winter and they plan on moving in after Christmas.
“The support they’re getting is amazing ... people have been real good,” he said. “The outpouring of love is unreal and right now that’s all they have is the help and love of other people.”
A fund has been set up for the Givenses at Cumberland Bank, and there is a benefit scheduled for the couple Jan. 14. Charles Givens, Troy’s brother, at Vic Jenkins Chevrolet, said more information would be made available as guests for the benefit are confirmed.
The News Examiner
United States House of Representatives