By Law, sinkhole is not automatically included in HO policy
Florida Statute 627.706 requires every insurer authorized to sell property insurance to provide coverage for catastrophic ground cover collapse and shall make available, for an additional premium, coverage for sinkhole losses on any structure, including contents of personal property contained therein, to the extend provided in the form to which the coverage attaches. A policy for residential property insurance may include a deductible amount applicable to sinkhole losses equal to 1 percent, 2 percent, 5 percent, or 10 percent of the policy dwelling limits, with appropriate premium discounts offered with each deductible amount.
A sinkhole loss means structural damage to the building, including the foundation, caused by sinkhole activity. Contents coverage shall apply only if there is structural damage to the building caused by sinkhole activity.
Please Note: Structural damage consisting merely of the settling or cracking of a foundation, structure, or building does not constitute a loss resulting from a Sinkhole
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