Do you really need sinkhole insurance?
When you look at the cost of sinkhole coverage, it depends on the size of your home. However, the cost is very reasonable, sometimes as low as $40/ year. If your home is your largest investment or holds a considerable portion of your personal net worth, you really should protect it to the greatest extent.
What does the law say about sinkhole insurance?
What does the law say about sinkhole insurance? Sinkhole Insurance. According to Florida law , a sinkhole is a “landform generated by subsidence of sediment, soil, or rock as underlying strata. Depending on the mandates instituted by state regulators, you can obtain sinkhole coverage as an endorsement to a property insurance cover or a stand ...
Should you consider sinkhole insurance?
Sinkhole insurance is one of those insurance policies where there’s a low chance you’ll need to make a claim, but if you do it could be for an extremely large amount. That’s why having this coverage as a backup is essential so that if you home is ever damaged or destroyed by a sinkhole, you can recover.
Are sinkholes covered by insurance?
The damage caused by sinkholes to the structure of the property is covered by a sinkhole insurance coverage claim. However, the coverage is only limited to structures with walls and roofs. This means that the structure outside of your home isn’t covered by your insurance policy.
Will insurance cover sinkholes?
A standard homeowners insurance policy typically doesn't cover damage caused by a sinkhole or other earth movements, such as a landslide or earthquake. It may be possible to purchase a separate policy or add coverage for sinkholes to your current homeowners policy in the form of an endorsement or rider.
How much does it cost to add sinkhole to insurance in Florida?
A sinkhole homeowners insurance endorsement in Florida can seem expensive at first. Most policy quotes range from $2,000 to $4,000 a year and can come with a high deductible. Considering, however, that the average sinkhole insurance claim exceeds $100,000, the quotes you find may prove worth the added cost.
Do I need sinkhole coverage in Tennessee?
§ 56-7-129(a) provides that: Every insurer offering homeowner property insurance in this state shall make available coverage for insurable sinkhole losses on any dwelling, including contents of personal property contained therein, to the extent provided in the policy to which the sinkhole coverage attaches. Tenn.
Is sinkhole insurance worth it in Florida?
If you live in Florida or another area prone to sinkholes, then sinkhole insurance may be worthwhile — though expensive. Sinkholes are impossible to predict, though some areas are more likely to have them than others.
How deep is the average sinkhole in Florida?
This paper discusses the average size of a sinkhole as determined from Southwest Florida Water Management District data for sinkholes that have occurred in west-central Florida. From review of this information an average sinkhole size of about 3.4 meters (11.2 feet) has been found.
Should you put gravel in a sinkhole?
Do not use gravel or rock as a fill material. If you do, water will trickle through the gaps in the gravel and create an even deeper cavity underneath. Shovel a few inches of the fill soil into the bottom of the depression and compact it thoroughly with a soil tamper.
What time of year do sinkholes occur?
Sinkholes can happen any time, but for a number of reasons they're more prevalent from early spring until late summer — the unofficial Florida “sinkhole season.”
How does sinkhole insurance work?
Sinkhole insurance is a special insurance policy that covers your home and personal belongings from sinkhole damage. Sinkhole insurance also pays to stabilize your home's land and covers the cost of repairing your foundation.
Can you fill a sinkhole with rocks?
A sinkhole is best repaired by excavating to rock and then building an aggregate filter in the hole. Step 1: Excavate the sinkhole down to rock if possible. Step 2: Put a layer of large stones in the hole (cabbage size). Step 3: Put a layer of smaller stones on top (fist size).
Why do sinkholes happen so often in Florida?
Sinkholes are common in Florida because the bedrock underlying most of the state is either limestone or dolostone, which is naturally soluble and is easily dissolved by rainwater and groundwater.
Where do most sinkholes happen in Florida?
Much of west Central Florida is made up of this landscape, making it very active for sinkhole formation. Pasco, Hillsborough and Hernando counties even make up an area known as “Sinkhole Alley.”
Are sink holes getting worse in Florida?
Sinkhole formation has accelerated over the years. They are commonly created by extended droughts, heavy rainfall, land development, water pumping, and construction of retention ponds. Sinkholes in Florida can range in size small to large.
Does insurance cover sinkholes in Florida?
Not all homeowners' policies provide coverage for damage to your home resulting from sinkholes. However, Florida law does require insurance companies to cover “catastrophic ground cover collapse.”
Do you have to disclose a sinkhole in Florida?
In the state of Florida, there is a statute that requires sellers and landlords to disclose the potential for sinkholes in an area before the closing of a sale or lease.
Who insures sinkhole homes in Florida?
Citizens offers Sinkhole Loss coverage as an optional endorsement for the following policies: Homeowners (HO-3) Modified Homeowners (HO-8) Dwelling Property (DP-1 and DP-3), with Building coverage.
How does sinkhole insurance work?
Sinkhole insurance is a special insurance policy that covers your home and personal belongings from sinkhole damage. Sinkhole insurance also pays to stabilize your home's land and covers the cost of repairing your foundation.
How Does Sinkhole Insurance Coverage Work?
Home insurance does not always require an inspection before a home insurance company gives you homeowners insurance coverage. Contrarily, before ag...
Is Sinkhole Loss Coverage or Catastrophic Ground Collapse Coverage the Best?
Long answer short, neither homeowners insurance option is the “best” per se for your home. Each home insurance policy provides coverage for your ho...
How Much Does Sinkhole Insurance Cost?
Both sinkhole coverage and catastrophic ground insurance policies are expensive compared to standard homeowners insurance coverage, especially in F...
Is Sinkhole Coverage Worth It?
In short, if you live in Florida, Tennessee, Pennsylvania, Kentucky, Alabama, or Missouri, yes, sinkhole coverage is definitely worth your money. G...
What Causes Sinkholes?
According to the Florida Department of Environmental Protection, the state is on thousands of feet of limestone, sand, and clay. Limestone is a kin...
Does Sinkhole Insurance Cover My Garage?
Sometimes sinkhole insurance covers your garage. Check with your sinkhole insurance provider to be sure.
Does Home Insurance Cover Sinkholes?
Homeowners insurance does not cover a sinkhole unless you live in Tennessee or Florida.
How Do I Get Sinkhole Coverage?
Unless you live in a high-risk area like Florida, Tennessee, Pennsylvania, Kentucky, Alabama, and Missouri, you will unlikely get home insurance co...
Will Sinkhole Insurance Protect My Car?
If a sinkhole swallows your vehicle, your car insurance will cover it only if you have comprehensive coverage on your car insurance policy. It’s be...
What type of insurance covers sinkholes?
There are two common types of sinkhole insurance policies offered: Sinkhole Loss Coverage and Catastrophic Ground Collapse (These can vary according to different insurance companies, but most who offer sinkhole insurance will have policies similar to these.) Some insurances may offer one type and not the other, and rarely do they offer both; it mostly depends on the area in which you live. Both policies focus on giving reparations to homeowners after a sinkhole occurs.
What does sinkhole insurance cover?
Basically, sinkhole insurance policies cover damages to and loss of personal property and belongings. If the structure or foundation of a home or building is damaged, the insurance company would give monetary compensation to either repair the damage or replace it.
Why was the sinkhole law created?
This law was created to prevent people from falling back onto the state financially in case of a car crash and forces them to seek damage recompense through personal insurance, but the law also makes it so that damages wrought due to a sinkhole must be recovered through personal insurance.
Why do insurance companies cover natural disasters?
Because natural disasters are financially catastrophic, insurance companies have begun to offer policies that cover them if one should happen. Before, insurance companies tried to avoid paying for household damages caused by natural disasters like sinkholes by excluding it from homeowners insurance clauses.
How many stipulations are there for damages to an insured building?
If damages are caused to an insured building under this policy, the damages must meet four stipulations in order to be filed on the insurance:
What does it mean when an insured building is condemned?
The insured building must be so damaged that it is deemed condemned and unlivable by the government. If the insured and damaged building does not meet all four of these criteria, then the insurance policy does not cover the damage done at all. If there are simply cracks in the foundation of the insured building, ...
What happens if a sinkhole collapses?
If a sinkhole caused a home to completely collapse into the cavity, the average person would not be able to pay out-of-pocket to fix or replace their home. In a high-risk area, the risk actually comes from not having sinkhole insurance, not the sinkhole itself.
What is sinkhole insurance?
Sinkhole insurance is a special insurance policy that covers your home and personal belongings from sinkhole damage. Sinkhole insurance also pays to stabilize your home’s land and covers the cost of repairing your foundation.
Is sinkhole insurance worth it?
If you own a home in a high-risk sinkhole area, sinkhole insurance could be something to consider. Without sinkhole insurance, you would have to pay out-of-pocket to repair or rebuild your home . Remember that most homeowners insurance companies do not cover sinkhole claims.
What is the deductible for sinkhole insurance?
The deductible is usually a percentage of the policy’s dwelling limit. For instance, in Florida, homeowners can choose a 1%, 2%, 5% or 10% deductible for their sinkhole insurance.
Where are sinkholes most common?
Sinkholes cause the most damage in Florida, Texas, Alabama, Missouri, Kentucky, Tennessee and Pennsylvania. Sinkholes are often found in areas that experience heavy rainstorms and significant flooding. However, sinkhole insurance is not as accessible as regular home insurance. Not every insurance company offers it.
What is catastrophic ground collapse coverage?
Catastrophic ground collapse coverage: Catastrophic ground collapse coverage protects your home if it falls into a sinkhole, and the foundation is damaged beyond repair. To qualify for catastrophic ground collapse coverage, your home must be condemned by a local government agency.
How do sinkholes form?
A sinkhole forms when the ground below the land surface gets saturated with groundwater and eventually collapses inwards. Currently, there is no way to determine if there is a sinkhole on your property. But if you live in a high-risk sinkhole state, your house could be at risk. Advertising Disclosure.
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Do you need sinkhole insurance in Florida?
The sinkhole coverage is designed to cover you against property damage caused by subsidence or subsidence-related events.
What are Sinkholes?
Sinkholes are natural disasters that can devastate your property and ruin your day. In the past decade, sinkhole coverage has become more popular as sinkhole events have increased in frequency. Sinkholes happen when water from rain, snowmelt, or irrigation wears away rocks under the land until it eventually collapses. The ground either sinks or heaves up, creating what is known as a sinkhole.
Why sinkhole insurance is important?
The most dangerous sinkholes are those that occur without any warning. When sinkhole insurance is not purchased, there’s no guarantee that the damage will be covered as sinkholes can happen at any time without warning.
How much does it cost?
But how much would it cost? The answer depends on a number of factors, such as location and size. Most policies range from $2,000 to $4,000 a year and can come with a high deductible. However, considering that the average sinkhole insurance claim exceeds $100,000, the quotes you find may prove worth the added cost. In some Florida counties with a history of sinkholes, sinkhole insurance may cost around $3,500 per year. Enquire with your agent or company to find out how much sinkhole insurance would cost you and what you get from it. Also, don’t forget to check in with multiple insurance providers and compare their policies.
What is the most common type of sinkhole?
The most common type of sinkhole is called an edge collapse sinkhole which occurs when the groundwater corrodes rocks along the edges of streams and rivers causing them to break away into the streambed below, forming deep vertical shafts that lead to underground caves. When these cave openings get too big for their ceilings, they will collapse causing sinkholes on the surface.
What happens if you get a sinkhole in your home?
That means that if your home suffers from a sinkhole, you will be able to get help with repair costs through your insurance company.
Why is Florida known as the sinkhole capital of the country?
The state is also known as the “sinkhole capital of the country”. This is due to the fact that Florida is lying on top of a bedrock of carbonate, primarily limestone. That rock dissolves relatively easily in rainwater, which becomes acidic as it seeps through the soil. The resulting terrain, called “karst” is honeycombed with cavities. When a cavity becomes too big to support its ceiling, it suddenly gives way, collapsing the clay and sand above to leave a cavernous hole at the surface.
Does My Homeowner’s Insurance Policy Cover Sinkholes?
With so much at stake (and so much sinkhole activity in the state), you’re probably wondering if sinkholes fall under the umbrella of your insurance coverage.
What is the deductible for sinkhole insurance?
The ones that do offer sinkhole insurance riders often apply deductibles of 10% (or more) of the value the insured home. This increased deductible does not apply to catastrophic ground cover collapse coverage.
What is sinkhole insurance?
A sinkhole insurance policy covers structural damage to the insured building, including the foundation, caused by sinkhole activity. A “sinkhole” is defined as “sett lement or systematic weakening of the earth” resulting from “contemporaneous movement or raveling of soils, sediments, or rock materials into subterranean voids created by the effect of water on a limestone or similar rock formation.”
Why are sinkhole insurance policies so difficult to find?
Because sinkhole policies cover a greater number of claims, they are much more difficult to find. In fact, Florida sees so much sinkhole activity that many insurers simply do not issue this type of policy. The ones that do offer sinkhole insurance riders often apply deductibles of 10% (or more) of the value the insured home.
How do sinkholes form?
This is only one way that sinkholes can form. Drought, drilling for wells, excessive withdrawing of groundwater, and other factors can make sinkhole activity more likely.
What is a sinkhole in Florida?
A sinkhole is a depression in the ground caused by the collapse of the underlying structure. Florida sits on limestone, a type of porous rock that succumbs very easily to water erosion.
What is Florida known for?
Florida is famous for many threats—hurricanes, alligators, the eponymous “Florida Man”—but one of its most dangerous features lurks right underground: sinkholes. Which begs the question: “How does this affect my insurance?”
What is a sinkhole?
Generally, a sinkhole is an area of the ground where moving water dissolves away rock, causing cracks and pores in the bedrock to get bigger. Over time, these cracks may form large cavities or caves that allow water to pool beneath the surface. This, in turn, weakens the structure below the earth's surface, and eventually leads to the ground collapsing in on itself, creating a sinkhole.
Does car insurance cover sinkholes?
When it comes to your vehicle, coverage may depend on the type of car insurance you carry. If you have comprehensive coverage, you may be protected from sinkhole damage. Comprehensive coverage will typically pay to repair or replace your vehicle if it gets damaged by something other than a collision.
What is catastrophic ground cover collapse vs. sinkhole coverage?
Insurers in Florida are required to provide "catastrophic ground cover collapse" coverage as a component of a standard homeowners policy, according to the Insurance Information Institute. However, this isn't the same as sinkhole insurance coverage. Catastrophic ground cover collapse coverage must meet specific conditions.
How much does sinkhole insurance cost?
The cost will vary depending on the state you live in and the specific details of your property . While it may be expensive to purchase, sinkhole insurance coverage may provide invaluable coverage if sinkholes are common in your area.
What states have sinkholes?
The risk of a sinkhole developing on your property is low when compared to other natural disasters, but they may occur. According to the United States Geological Survey (USGS), the states where sinkholes are more common include: 1 Alabama 2 Florida 3 Kentucky 4 Missouri 5 Pennsylvania 6 Tennessee 7 Texas
How to file a claim for a sinkhole?
To file a claim, you must prove that your home has sustained structural damage or is in danger of collapse due to a sinkhole. This coverage may also extend to other structures on your premises.
Is sinkhole insurance deductible?
While it may be expensive to purchase, sinkhole insurance coverage may provide invaluable coverage if sinkholes are common in your area. Sinkhole coverage may also have a separate deductible from your All Other Perils deductible. Percentage deductibles may range from 1% up to 10% of your dwelling's coverage limit.
Does homeowners insurance cover sinkholes?
Most homeowners insurance policies exclude earth movement such as sinkholes and earthquakes — from a small shift in the earth beneath the foundation of a building that can still cause severe damage, to a major sinkhole that swallows up an entire home.
What type of insurance covers sinkholes?
There are two types of sinkhole insurance: Sinkhole Loss Coverage, and Catastrophic Ground Collapse.
Why does property insurance exclude damage to the earth?
Most property insurance policies exclude damage related to movement of the earth because the real estate value of the land is excluded when home insurance policies are priced. Property is insured for what it would cost to rebuild the structure, and the price of the land isn’t factored into the premium.
What causes sinkholes?
When the rock below the surface disintegrates, underground holes are created and the ground surface falls through. Falling water tables and drought followed by sudden rain can also cause sinkholes.
Which state has the most sinkholes?
Pennsylvania has the second-highest rate of sinkholes, behind Florida. All of Florida is prone to sinkholes because its landscape is karst topography, which is basically dissolving bedrock, according to a USGS map of karst areas in the U.S. In January 2017, a 30-foot-wide sinkhole swallowed the front yards and part of a road in Cheltenham Township, PA. No one was injured, though a truck parked in a driveway dangled at the sinkhole’s edge.
Is sinkhole insurance worth it?
If you live in Florida or another area prone to sinkholes, then sinkhole insurance may be worthwhile — though expensive.
Does Florida require catastrophic ground collapse insurance?
Catastrophic Ground Collapse insurance is different. Only Florida and Tennessee require it from homeowners. Most sinkholes are excluded from this coverage because they must meet these four criteria:
What causes stair cracks?
While stair-step cracks and cracks in floors and foundations are often caused by routine settling of homes, damage from an actual sinkhole may be as minor as a cracked sidewalk or as large as a swallowed home, (such as the headline-grabbing sinkhole that opened up outside of Tampa and resulted in loss of life).
What is structural damage?
Structural damage to the building including the foundation. The insured structure being condemned and ordered to be vacated by the government agency authorized by law to issue such an order for that structure.
How much does it cost to fix a sinkhole?
Actually, as much as 99 percent of “sinkholes” are not actually holes. Repairing a sinkhole house typically costs more than $100,000 and if not handled correctly can impact the value of your home.
What is a catastrophic ground collapse in Florida?
Under Florida law, “catastrophic ground collapse” is defined as geological activity that results in all of the following: The abrupt collapse of ground cover. A depression in the ground cover that is clearly visible to the naked eye. Structural damage to the building including the foundation.
Is there a fee for a sinkhole consultation?
The initial consultation with a BCN Attorney knowledgeable about sinkholes is free, so there’s no reason not to include one of our attorneys on your team. Then, should you have a claim later on, your attorney will be at your side to ensure you are treated and compensated fairly.
Does Florida have sinkhole insurance?
While in most states, that answer is no, in Florida, home insurance providers are required to offer coverage for “catastrophic ground cover collapse”, which covers the insured if his or her home or property is damaged due to a sinkhole, and to offer additional separate coverage for other sinkhole damage. Under Florida law, “catastrophic ground ...