Talk of The Villages Florida - View Single Post - Insurance Denied Due to Sinkholes
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Old 01-05-2021, 07:50 AM
retiredguy123 retiredguy123 is online now
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Quote:
Originally Posted by caseycasebeer View Post
A previous poster mentioned sinkhole coverage (that may not be available), but also stated that all FL policies cover “catastrophic ground collapse.”

What’s the difference?
It's a little complicated, but here is a good explanation.

“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.”

If you do not purchase sinkhole coverage and
your home is damaged by sinkhole activity,
the only coverage you have is for catastrophic
ground cover collapse and if the damage does
not meet all four criteria required for catastrophic
ground cover collapse – for instance, you may
have foundation cracks, but the home is still
livable – your insurance company may not pay
for the damage.