Sinkhole or Catastrophic Ground Collapse – A Florida Dilemma
Most of the questions we get either by phone or email is about the New Florida Sinkhole Law. Do I have Sinkhole coverage or not?
A recent change in Florida law requires authorized insurers to cover “catastrophic ground cover collapse,” but damage caused by a sinkhole may not be covered by your policy. More Confused? – Let me see if I can explain. If you have a Homeowners policy in the state of Florida (issued by an admitted authorized carrier) you have coverage for “Catastrophic ground cover collapse.” That is “geological activity that results in ALL of the following:
- The abrupt collapse of the ground cover;
- A depression in the ground cover clearly visible to the naked eye.
- Structural damage to the building including the foundation; and
- The insured structure being condemned.
All of the above conditions must be met including the “Condemnation” of your home to “Trigger” coverage.
The next question is what is NOT covered?
If your damage does not result in the above, including “condemnation” but does “cosmetic” damage the policy will not respond unless you purchase “Sinkhole” Coverage.
Some companies do not offer “Sinkhole” Coverage, others do but require and inspection. Some companies will charge you for the inspection some will not, in either case you will not have any coverage until the company inspection is completed and coverage is “bound” by the company.
More Questions?
Call us 813 514 6982 or email us at info@nusurance.com
Important Florida Sinkhole information – Click here for Download Link
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