Sinkhole vs cat ground collapse
I am a retired insurance agent and reading these comments cause me to be very concerned that most have not been explained correctly what cat ground collapse covers or what sinkhole coverage actually covers. I strongly recommend you call and set up a review with your agent and get a copy of the actual policy That explains cat group collapse and a copy of the sinkhole endorsement.
The coverage is the same regardless of what company you purchase from. The only difference is your out of pocket deductible. When the State of Florida changed automatic coverage to catastrophic ground collapse and made sinkhole an endorsement that you have to purchase they offered all companies an option as to how they filed the sinkhole deductible that they would offer. They got to chose a flat 10% of Dwelling coverage or they could chose the all perils deductible. The companies then calculated and filed the rates with the State of Florida based on the deductible offered through their state filing. Only a few companies filed the all perils deductible and the rest 10%. I know two companies, Allstate and State Farm filed all perils deductible which means if you have a $500.00 or $1000.00 deductible your sinkhole deductible will be same. Of course your premium will be higher because in the event of a sinkhole claim your out of pocket is much lower.
Example: home insured for $250,000 with a 10% deductible means you pay $25,000 deductible. If you have a $1000 all perils deductible you only pay $1000.
Ask your agent if you have a sinkhole claim how long you have to come up with that deductible? Ask your agent if land is covered if no sinkhole damage to structure? (Remember you are insuring your structure not the land) You can always call the department of insurance in Tallahassee and ask the question.
It bothers me that agents are not explainIng coverages. One other thing, will your agent help you if you have a claim or just transfer you to a claims department? Find an agent who will walk you through claims process and help you if you need help.
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