Does Your Insurance Policy Cover Sinkholes? Check the Fine Print!
Federated National Insurance
Florida is home to the so-called ‘sinkhole alley’ where cases of sinkholes were recorded in the past years. With this unpredictable catastrophe, it makes many homeowners wonder, does Florida homeowners insurance cover sinkholes?
Sinkholes are very dangerous as these can take away properties and even lives. But in Florida, most homeowner’s policies only cover catastrophic ground collapse. As much as it might suggest sinkhole coverage, it’s not the case with most insurers.
What the policy indicates
All insurance policies will have a list of inclusions. Take your time to read this so you will know if you are covered in case a sinkhole happens.
Take note that sinkhole is a common exclusion in Florida insurance together with earthquake and flooding. Since most of these are unpredictable, it leaves the homeowner unaccountable at any aspect. This means that the insurance company can’t find loopholes in case a collapse happens.
Still, each policy differs from another. Make sure that you take a close look before you file for a claim.
Are you at risk?
Usually, a sinkhole is defined as ground collapse. Local authorities can advise if your area is at risk. Take note that areas that sit on top of limestones are highly at risk of sinkholes. Also, you may want to check for the groundwater composition as the shifts can also trigger a collapse.
If you’re not sure of your risk level, head to the city hall to check if your location is at risk of suffering a sinkhole or any form of ground collapse.
Do you need sinkhole coverage?
Regardless if your area is at risk or not, it’s always added peace of mind to have this type of coverage. Most of the time, insurance companies offer this as an optional add-on to your original policy. However, the sinkhole insurance quote will also increase. Still, the average cost for sinkhole insurance is manageable enough for most homeowners.
It pays to get good advice and trust only an insurance company that will give you the right payout. But if everything comes to worse, you always have public adjusters to help you out.
What to do if you’re standing on top of a sinkhole
In case your location is at risk to sinkholes, you should take a proactive approach. Get sinkhole coverage regardless if it will cost you more.
The good thing is that local legislation would require insurance companies to offer sinkhole coverage if the area is at high risk. Talk to your insurer so you’ll know what steps to take.
What if my insurer denies the sinkhole claim?
In case your property suffered from a sinkhole, you should file for a claim right away. In some instances, the insurance company will try to deny the claim by using accomplices and loopholes on the policy.
When this happens, contact Gold Coast Public Adjuster. We will appeal your claim to the insurance company to hold them accountable. This way, you will be spared from out-of-pocket sinkhole repair costs.
So does Florida homeowners insurance cover sinkholes? Talk to your insurer and consider the possibility of availing additional coverage.
