Are You Covered by Sinkhole Insurance in Florida?
In Florida, sinkhole insurance coverage is constantly changing. If you’re settling into a new home, be sure that it is insurable. Make sure sinkhole coverage is included in your policy, and ask your insurance agent about the type of coverage you have. There are two types – catastrophic ground cover collapse and sinkhole loss coverage. It’s important to know the difference between the two because you could be covered in one and not the other. The Florida Legislature recently passed an insurance law that reinstates the definition of sinkhole insurance coverage. This is due to the increase cost of sinkhole claims and the inability to distinguish between legit sinkhole claims. Each policyholder must decide if sinkhole coverage is worth the investment. Some policies only contain coverage for sinkhole loss that is caused by sinkhole activity.
Sinkhole Loss vs. Catastrophic Ground Cover Collapse Insurance
What is the difference between sinkhole loss coverage and catastrophic ground cover collapse insurance?
Sinkhole Loss Insurance
Damage caused by sinkhole activity may experience the following:
- Interior floor or foundation displacement
- Leaning or buckling walls
- Wall cracks
- Covers foundation cracks and other damage caused by sinkhole activity
- Home is still habitable
For insurance purposes, sinkholes are defined as collapsing voids or cavities created by soluble limestone.
Catastrophic Ground Cover Collapse Insurance
Geological activity that causes the following:
- Serious damage beyond repair
- Home is inhabitable
Catastrophic ground cover collapse sinkholes are visible ground depressions. The abrupt collapse causes serious structural and foundation damage, forcing homeowners to evacuate the premises.
Both types of insurances are distinctly different. If you don’t have catastrophic insurance coverage, you will have to pay out of pocket for repairs and damages. Cars also need coverage. You can get coverage by including comprehensive coverage with your vehicle’s insurance policy. This type of coverage provides compensation for any sinkhole damage, including fire, theft and falling objects.
Before you contact your insurance company about sinkhole problems, call our professionals right away for proper inspection. These results can be given to your insurance company. Contact us today!