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Do you need special insurance in case of a sinkhole?

On Behalf of | Feb 18, 2023 | Property Damage

Homeowner’s insurance is the bare minimum of coverage required for those who own residential property. It provides liability protection in case visitors get hurt and baseline protection for damage to a home. Some people choose to purchase far larger and more comprehensive policies than others.

Especially if you have an outstanding mortgage on your home, you may need additional forms of coverage to protect yourself, your investment in the property and the investment of your lender. Florida’s sometimes intense weather and low-laying ground make carrying special hurricane and flood insurance or wind insurance necessary for many property owners.

There is also specialized sinkhole insurance that can protect people from a sudden collapse of the earth. A sinkhole nearby will often result in catastrophic damage to a home. The question then becomes, do you need to purchase separate sinkhole coverage in addition to a homeowner’s insurance policy if you’re living in Florida?

Your policy does include some sinkhole protection

Sinkhole coverage is categorized as supplemental coverage or even as grounds for a separate policy in most states. Florida is actually the only state that requires that insurance companies cover losses related to catastrophic ground cover collapse.

Of course, the damages possible in a sinkhole scenario can far exceed the damages covered by basic policies in most cases. As such, some property owners, especially those with high-value homes or in areas with manufactured terrain, may benefit from adding supplemental sinkhole insurance to their package of policies.

Sinkhole claims can quickly become complicated

There are numerous ways to make use of sinkhole coverage. Repairing a property or rebuilding can be one option. Purchasing a separate property elsewhere can also sometimes be necessary as a result of substantial sinkhole damage. Of course, before you determine how to handle the damage to your property, you will first have to make a claim related to the catastrophic collapse of the ground nearby.

It can be difficult to evaluate the likely costs involved with such a catastrophic situation, and people coping with such an extreme emergency scenario may struggle to advocate for themselves without professional help. Getting the support that you require when dealing with your homeowner’s insurance company can improve your chances of a favorable outcome when making a sizable claim.