Quote:
Originally Posted by bobdel
Just got the insurance renewal and sink hole insurance went to a 10% deductible for this year. Was told that most carriers either are dropping coverage or going to 10% or more deductible due to the large amount of claims and fraud. Has anyone else had problems with this coverage recently?
Thanks
|
Some of this has already been covered, but just to clarify … we’re talking about two insurable events.
The first is “Catastrophic Ground Cover Collapse” as opposed to a “sinkhole”. CGCC is defined as damage that is “abrupt,” “clearly visible” and involves “structural damage.” Often the house will be condemned should it become too dangerous to live in. The good news is any FL homeowner’s policy should automatically include this coverage. CGCC does happen from time to time in TV. About 12-18 months ago, several houses near Cane Garden were impacted by CGCC. The risk seems to be higher near water and/or very flat areas of the golf course, and less so on a more hilly terrain or lot.
You’re talking about the “Supplemental Sinkhole” coverage. You can usually get them for new homes south of 466A but they are only issued by a limited number of companies. However, if you can get SS, it’s going to be 10%. If your house does not pass muster based the risk of sinkholes per the geographic area (actually the address), it will be inspected. If it fails, no policy will be written, and you then become “self insured.”
Think of sinkholes as kind of a slow motion collapse. You wake up one day and your door doesn’t shut, or windows are misaligned, type of thing. If it happens it will be distressing. Often it can be fixed, but it’s going to be expensive.