Florida homeowner insurance restricts us from several coverage
features. One that can be quite confusing to several homeowners is the
difference between "Sinkhole" and "Catastrophic
Ground Collapse".
Most homeowners polices
in Florida exclude coverage for "sinkhole activity" however
they provide you with the opportunity to request and endorse your
policy to include such coverage for additional
premium.
However, All Florida homeowners policies do include coverage for
"catastrophic ground collapse" which is defined below:
Catastrophic ground cover collapse” is defined as “geological activity that
results in all of the following:
1). The abrupt collapse of the ground cover;
2). A depression in the ground cover clearly visible to the naked eye;
3). Structural damage to the building including the foundation; and
4). The insured structure being condemned and ordered to be vacated by the
government agency authorized by law to issue such an orderfor that structure.”
This means that if your home is damaged by sinkhole activity, but does not meet
all four criteria for catastrophic ground cover collapse – for instance, you
may have foundation cracks, but the home is still livable – your insurance may not
pay for the damage if you do not have sinkhole coverage
If you wish to request to include "sinkhole
activity" you must contact your agent and/or insurance company
to request a sinkhole inspection usually with in 45 days of the effective
date. There is a small fee for this inspection, typically less than
$225.00 and the insurance company will usually split the
cost. However there is not a guarantee that coverage will be
extended. You must receive a favorable inspection.
For more information contact us.
Juan D. Espinosa
E&S Insurance
