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The Florida Senate spent most of the morning arguing over whether insurance companies should be required to offer sink hole coverage. As Mike Vasilinda tells us, the debate is far from over, but if the majority of the Senate gets its way, thousands of homeowners could be forced into the insurer of last resort.

If your house falls into a sinkhole, it is considered catastrophic ground cover collapse under insurance legislation steaming through the state Senate, and it would be covered. But insurance companies would not have to offer coverage from cracks that develop because of shifting ground. State Senator Mike Fasano spent most of Wednesday morning trying to convince the Senate to require coverage of both cracks and collapse.

“You will have people who want to buy a home in this state, that will not be able to get sinkhole coverage,” Fasano said. “Therefore, they will not be able to get sinkhole coverage.”

Sinkhole losses have sky rocketed in recent years. Sponsor Garrett Richter says many of the claims are fraudulent.

“Policyholders are receiving checks, large checks for small cracks,” Richter said. “They’re taking these checks, they’re not repairing the property. They’re taking these checks, they’re paying their mortgage off, they’re buying a boat.”

Fasano lost the fight, for now.

Right now, the House still wants to require sinkhole coverage, so let the negotiations begin.

Richter believes insurance companies will offer the sink hole coverage, even if it is not required. We asked what would happen if he was wrong.

“If I’m wrong? Then there is an insurer of last resort, as designed,” Richter said.

If the Senate wins out and only catastrophic collapse ends up being required, thousands of homeowners could be forced into state run Citizens, or non-regulated out-of-state companies as early as June.