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Do you need sinkhole coverage?

tony • January 18, 2017

Sinkhole coverage in the State of Florida is an interesting coverage. It’s seemingly easy to understand what it covers….sinkholes….right? It’s actually a little more complicated than that. Sinkhole coverage is one of the few coverages that is potentially different than what most people perceive.

When you think sinkhole, do you think:

1. An abrupt collapse of the ground
2. A clear depression to the naked eye
3. Structural damage to your home including the foundation
4. Your home being unlivable and condemned by local authorities

If you answered yes to the above, then your homeowners insurance most likely has the coverage you desire without you adding the sinkhole endorsement to your policy. In Florida, a law change requires authorized insurers to include Catastrophic Ground Cover Collapse as a covered peril in the homeowners policy. But the catch is that for coverage to apply, all four above points must be met.

So what happens when only one, two, or three of the four items occurs? Well that’s when you need the sinkhole coverage endorsement. If you come home one day and there are cracks in your foundation and/or running up the walls but your home is still livable, your insurance company will not have to pay for the repairs unless you have the sinkhole endorsement added to your policy.

Lastly, keep in mind that adding sinkhole coverage isn’t always a cakewalk. Naturally, if you call your insurance company and ask to add sinkhole coverage, they’re going to wonder why. And depending on where you live in Florida, the insurance company may require a 30 day waiting period before coverage begins or perhaps even a satisfactory sinkhole inspection before allowing you to purchase the coverage.

If you think you’d be upset if your insurance company didn’t cover cracked walls, a cracked foundation and the like ­ then call your insurance company straightaway and inquire as to whether you have the sinkhole coverage endorsement.

Want more tips like this? Join the Chrinco.com community and follow us as we not only provide insurance tips to consumers but also are developing a new way to shop for insurance. Join the journey that we believe will change an industry. Chrinco.com ­Insurance Simplified.

The post Do you need sinkhole coverage? appeared first on Chrinco.

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