Sinkhole Damage & Your Homeowners Insurance Policy
Do you Need Sinkhole Insurance in Florida?
Florida is the sinkhole capital of the United States. For context, since 2006, more than 15,000 sinkhole-related claims have been reported to Citizens Property Insurance. However, not all homeowners insurance policies cover property damage from a sinkhole. Florida law requires all insurers to cover “catastrophic ground cover collapse” as part of the standard homeowners insurance policy. Also, Florida law requires insurers to offer sinkhole coverage, but it usually comes in the form of an endorsement and with an additional premium.
What is a Sinkhole?
Sinkholes usually happen when soil and rock under the Earth’s surface are dissolved by groundwater. Sinkholes most commonly appear in places where there are large amounts of water – hence why they so popular in Florida.
What is the Law Concerning Sinkholes in Florida?
Florida Law requires any property insurance provider operating in this state to provide catastrophic ground cover collapse coverage, but this does not necessarily cover the damage from a sinkhole. Catastrophic ground cover collapse is explained in the statute as geological activity that causes (1) the abrupt collapse of the ground; (2) an obvious depression; (3) structural damage to a covered building; and (4) a government agency condemning the insured damaged home. If an insured does not have separate sinkhole coverage, the damage will only be covered if it meets all four criteria required for catastrophic ground cover collapse.
Have You Suffered Property Damage Because of a Sinkhole?
A sinkhole can unexpectedly cause significant property loss to your home. Coupled with the complexity of the language of the policies dealing with sinkholes, a sinkhole damage claim can be incredibly stressful to a homeowner. If your sinkhole damage claim was denied, or you believe you received less money than you deserve, its important to have an experienced attorney review your claim to help you get the money you deserve.