If a sinkhole damages the house, and the county or state condemns the house and requires you to move out, your catastrophic ground collapse will cover the damage, except any deductible. This insurance is required for all homeowner's policies in Florida. In this case, your optional sinkhole insurance will not cover anything.
If a sinkhole damages part of your house, but it can still be lived in, the optional sinkhole coverage will cover the damage, except for the deductible. The catastrophic ground collapse coverage will not cover anything.
One common myth is that sinkhole insurance will cover property that is not part of the house, like driveways, fences, lawns, etc. This is NOT correct. It only covers damage to the house.
That is the way I understand the two types of coverage.
|