[784caroline]

With the Florida homeowner insurance industry in a state of flux and Florida laws changing regarding homeowners insurnace, you may want to make certain what type of sinkhole coverage you actualy have according to your written homeowners insurance policy. You have read on this board or peple taking about 2% Hurricane deductible and now you read about companies offering 10% deductibles for sinkhole coverage while others have $500. What is the difference or is there any?? Many of these changes will not be noticed until renewals comming due in 2011 or 2012 so be careful in knowing what you are getting.

There are basically 2 types of Sinkhole Coverage.

Sinkhole Loss is the more common loss (or claim ) in FLorida and it is defined as Gradual settlement or weakening of the earth supporting your property. Coverage includes structural damage to the building or foundation as well as damage to contents on the building caaused by the gradual settlement. Clayey soil is a common fault for this damage. This is the coverage that insurance companies have been applying the 10% deductible to and if you have sinkhole activity you are most likely to have this type of loss.

Another type of sinkhole loss is Catastrophic Ground Cover Collapse (CGCC) and this is the one although infrequently ocuring, it gets the most press. Think of your house being swallowed up by a sudden giant depression. This coverage is only for geographic activity that causes abrupt or sudden collapse of ground cover and structural damage other than settling or cracking occurs. The building or structure is normallly condemed or ordered to be vacated by Govt authorities. This coverage typically carries your "all other perils deductible which may be $500 or so.

SO I suggest you read your policies when they start to renew. It is not prudent to think that you have sinkhole coverage if what you really have is catastrophic groung cover collapse. There have been many articles even in the Village Sun on how Sinkhole damage is becomming a major cost item (claims) for Florida insurance companies and they are finding ways to reduce their risk.