When I relocated to Florida, I was told about sinkhole insurance.
Is sinkhole insurance worth it in Florida?
I will say that taking sinkhole insurance is necessary for anyone living in Florida or any other place where there is a
risk of sinkholes
, notwithstanding it is expensive.
You cannot predict sinkholes, but the risk is higher in some places than in others.
There are more
sinkhole activities in Florida
than in other states in America.
Is Sinkhole Insurance Worth it in Florida?
The state of Florida has a law that mandates all insurance companies to have a policy that covers serious ecological risks, but this policy can not cover sinkhole damages.
The definition the law gives of sinkholes is different from the definition it gives of ecological problems.
The law says a sinkhole is “a landform created by subsidence of soil, sediment, or rock as underlying strata are dissolved by groundwater.”
Is Sinkhole Insurance Worth it in Florida?
A sinkhole is created when limestone or dolostone dissolves and collapses into subterranean voids.
The law sees catastrophic ground cover collapse as seismic action that gives results in the following:
A sudden collapse of the earth’s surface.
An obvious depression of the earth’s surface.
A building structural defect from the foundation, and
When an authorized government agency orders the vacation of an insured building.
What Does Insurance Cover?
For you to be entitled to indemnity if your building is a victim of sinkhole activity, all four definitions of catastrophic ground collapse above must be met in your claim.
If not, the insurance company is not liable to indemnify you.
The laws of Florida demand that all insurance companies should have a policy that covers sinkhole damage.
This policy is a part of your homeowner’s policy and demands you to pay a higher premium on the policy.
Ensure that any house you are buying in Florida is insurable.
Also, ensure that
sinkhole coverage is a part
of its homeowner’s policy.
Get a professional to inspect the property to check for any sign of sinkhole activity.
Some of the signs of sinkhole activity are:
Leaning fence
Sloping floors
Dead spots on the ground surface
Driveway cracks
Ceiling cracks
Floor cracks
Wall cracks
Windows and doors that stick
You can call the experts over, to inspect the building to know if it stands the risk of sinkhole activity.
If there is, they will strengthen the loose soil by injecting compaction grouting into it.
This will
prevent the formation of a sinkhole
.
Sinkhole Formation
Rainwater flows through limestone.
Sometimes, it collects in the cracks in the stone.
These cracks are called joints.
With time the limestone will gradually dissolve away and the size of the joints will increase.
The limestone will no longer be strong enough to support any weight above it.
With time, the ground will cave in and collapse, the sinkhole is created.
Any heavy object, even flood water can result in a sinkhole.
Other things trigger sinkholes also.
The drilling of boreholes for water is one of the factors.
As water sits in the joints of limestone, it contributes to the pressure that supports the ground above it.
Pumping out the water to the surface removes this supporting pressure.
The limestone will be left with a hole or multiples of them, making it weak and nonsupportive to whatever weight is on top.
Other factors that trigger sinkhole formation are long-time droughts and the building of retention ponds.
Does home insurance cover sinkholes?
A damage resulting from sinkhole or any other seismic actions like a landslide or earthquake is not covered by a standard homeowners insurance policy.
You will purchase an entirely different policy that will cover sinkholes or get sinkholes coverage inculcated into your present homeowner’s policy, by endorsement or rider.
Damages resulting from seismic actions like sinkholes, landslides, or earthquakes are not covered under ordinary homeowner insurance policies.
Insurance companies do not see a sinkhole as an insured risk, so you have to buy a different sinkhole policy for your house.
What Sinkhole Insurance Covers
Your homeowner’s policy covers the foundation and frame of your building.
It gets the building insured up to indemnifying you up to its replacement cost, from the foundation to the rooftop.
However, this policy does not cover the land’s surface beneath the building.
The policy does not cover any additional construction you made on the building.
Damages on your mailbox, perimeter fence, household appliances, and any other structure or personal goods on or near your building are not covered by homeowner’s policy.
If you are worried about sinkhole activity in your area, you should take sinkhole insurance to supplement your homeowners’ insurance.
It is very hard to identify sinkhole activity because it develops gradually and will suddenly manifest one day.
To safeguard your house, add a sinkhole policy to your homeowners’ policy to safeguard it from sinkhole damage if the issue of sinkhole activity in your area concerns you.
You can pay an additional fee to endorse sinkhole coverage into your homeowner’s policy the same way you can endorse earthquake coverage.
However, you have to first find out if your insurance company offers it or sells it differently if they do offer it.
Some sinkholes do not fall immediately, but the most dangerous ones fall within seconds.
So it is necessary to report any sign of sinkhole you see in your property as soon as possible so that you can avoid more damage to your house.
FAQs
Who ensures sinkhole homes in Florida?
Most people prefer to go for Sinkhole Loss coverage instead of Homeowners (HO-3) Modified Homeowners (HO-8) or Dwelling Property (DP-1 and DP-3), with Building coverage endorsement.
How much is sinkhole insurance in Florida?
The cost of sinkhole homeowners insurance endorsement in Florida may look very expensive at first.
The policy ranges from $2,000 to $4,000 annually.
Sometimes it comes with a high deductible.
The quotes you will be given may reflect the added cost, considering that an average sinkhole insurance indemnity is above $100,000.
What part of Florida is safest from sinkholes?
The
East coast of Florida
has the lowest number of sinkholes in the state.