Quote:
Originally Posted by capecoralbill
Types of sinkholes:
One Type:
Included in almost all policies:
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 order for that structure.
The Other type:
Extra cost, and may not be available, due to red-lining.
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.
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Where did you copy this wording?
Cat ground collapse is included in all property policies written in Florida and deductible is all perils deductible.
Actual claim example: sinkhole opened at corner of home where garage is located. Did a little damage to corner slab. Was not condemned by county so did not qualify for cat ground collapse. Insured did not have sinkhole coverage. Out of pocket was over $15,000 to have repaired. If they had sinkhole with 10% deductible, cost would have been below deductible so out of pocket would of been same. If they had sinkhole with a $500 or $1000 deductible repairs would have been done with not much out of pocket.
Sinkhole is added by endorsement and extra premium is charged. The endorsement coverage is the same regardless of what company offers. Only differences is out of pocket deductible State of Florida gave companies one of two options when the companies filed their state rates and thE option is the deductible. They could choose 10% of dwelling amount insured or the all perils deductible. Only a few companies elected to offer all perils deductible Allstate and State Farm are the two companies I know of that offer all perils deductible.
What most do not know is that one of the biggest concerns of property companies in Florida now is the age of your roof. Due to so many claims on roofs In Florida many companies now start looking at roofs at 10 years of age to qualify for a new policy. When you have a huge premium increase you will finD it difficult to find a new home policy if your roof is older than 10 years old. Sinkhole coverage is not difficult to get but qualifying For a home policy do to the roof age is the hurdle in today’s market.