[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.

[champion6]

Wow... good to know. Thanks!

[Bill-n-Brillo]

Good info! Thanks caroline!

Bill

[2BNTV]

Caroline:

Thank you for posting this. Great info.

Another thing to make sure that gets done on a wannabees list when buying in TV.

[skyguy79]

Originally Posted by 784caroline

It is not prudent to think that you have sinkhole coverage if what you really have is catastrophic groung cover collapse.

I'm a little confused by the above quoted statement. Does this mean that if you have "CGCC" that you may not be covered for a "sinkhole" loss?

[JimJoe]

Thank you for the information.
jj

[784caroline]

skyguy

Suggest you read your policy. If you ONLY have catastrophic ground cover collapse (CGCC)....you would have sinkhole coverage if it is sudden, abrupt and structure is rendered not liveable. CGCC would NOT include gradual settlement or simply cracking walls or foundations. It is all in the wording and definition of how your policy defines a sinkhole. What occurs the most in Florida is Sinkhole activity NOT CGCC.

From an insurance perspective think of how you are covered for water damage. Your roof leaks you are covered but you may not be covered if a sewer overflows or a sump pump stops working unless you have an additonal endorsement ...same is true for floods yet its all water damage.

If you have a question specific to your policy, I suggest you ask your insurance company...but you need to be very direct and not just ask if you have sinkhole coverage but does the sinkhole coverage provided in this policy include "Sinkhole Activity" to include gradual settlement and cracking of foundations. Again many of these definitional changes will start occuring with renewals in 2011 or 2012

[skyguy79]

Originally Posted by 784caroline

skyguy

Suggest you read your policy. If you ONLY have catastrophic ground cover collapse (CGCC)....you would have sinkhole coverage if it is sudden, abrupt and structure is rendered not liveable. CGCC would NOT include gradual settlement or simply cracking walls or foundations. It is all in the wording and definition of how your policy defines a sinkhole. What occurs the most in Florida is Sinkhole activity NOT CGCC.

From an insurance perspective think of how you are covered for water damage. Your roof leaks you are covered but you may not be covered if a sewer overflows or a sump pump stops working unless you have an additonal endorsement ...same is true for floods yet its all water damage.

If you have a question specific to your policy, I suggest you ask your insurance company...but you need to be very direct and not just ask if you have sinkhole coverage but does the sinkhole coverage provided in this policy include "Sinkhole Activity" to include gradual settlement and cracking of foundations. Again many of these definitional changes will start occuring with renewals in 2011 or 2012

Thanks! I don't have my policy with me here in NY but will look into it when we return to TV in the Fall!

[Bill-n-Brillo]

Originally Posted by skyguy79

Thanks! I don't have my policy with me here in NY but will look into it when we return to TV in the Fall!

Hey Skyguy -

Went by your TV house today. Big sinkhole there, man - your place is pancaked! Sorry about your luck. Have a nice day!

Just kidding!!!!!! JOKE!!!! Heh-heh!!



(Note to self: Check our homeowner policy.)

Bill

[skyguy79]

Originally Posted by Bill-n-Brillo

Hey Skyguy -

Went by your TV house today. Big sinkhole there, man - your place is pancaked! Sorry about your luck. Have a nice day!


Bill