First let me get this out of the way. Sinkholes that you see on T.V. that have swallowed a structure are not defined that way by the state. For insurance purposes what that is actually classified in a Catastrophic Ground Collapse. That is when a hole surfaces on the ground and causing damage that results in the property being condemned or uninhabitable. A Sinkhole is when a hole or pocket in the ground have not surfaced.
So now that we that out of the way. What does that mean to you and your home. In Florida you have two coverages on home insurance policy that relates to that. One is Catastrophic Ground Cover Collapse and the other is Sinkhole Coverage. Because of the media and how they protray things on the news. Most people believe Sinkhole coverage is what they need on their homeowners policy. That unfortunately is incorrect presumption on what they need.
Sinkhole coverage in Florida covers a potential pocket (void) under your home, in the event you become aware of this situation. The pocket or void is under the ground and has not surfaced.You may request the company to add the coverage before you purchase the policy if you pay for a sinkhole inspection. This inspection does not guarantee the coverage will be added to the policy and even if it is added the coverage will contain a 10% deductible. The result if a viod is found will most likely be a substance like cement to fill the void. That is after you pay your 10% deductible. Which if your policy is for 180,000 you will need to pay 18,000 first.
How often will you know of a void under your home. Most of the time the only way we know of a void is when it surfaces. When it does surface it no longer defined by the state for insurance purposes as a Sinkhole but Catastrophic Ground Collapse. This is a fact and is not for interpretation by any agent.
The coverage that will cover your home in the event of it falling into a hole or void is Catastrophic Ground Cover Collapse. Unlike Sinkhole coverage, Catastrophic Ground Cover Collapse is under your normal deductible. If your home collapses into a hole or void your homeowners insurance policy will pay coverage limit. In Florida it is a STANDARD COVERAGE on all home insurance policy's. You do not have to have Sinkhole coverage to be covered if your home is swallowed by a hole or void.
Insurance companies and agents make money by the amount of coverage you have. If a coverage makes sense to you and you think you need it then get it. Do not just go along with your agent if you do not understand the policy or coverages. If your agent tells you that you need sinkhole coverage to cover your home. Ask them about Catastrophic Ground Cover Collapse and see what they tell you. After all this is a sales business and if they person you are dealing with is honest they should tell you the truth. However a lot of agents are just after the sale and to see how much money they can make.
We at HomeTown Village Insurance want our clients to be like family. Our goal is to bring back that local home town feeling. You are just not a number when it come to us. We take the time to go over your coverages with you so that you understand them. You will feel important and that your business means something to us. HomeTown Village Insurance staff want to make sure that you have the best coverages for the right price.
HomeTown Village Insurance covers The Villages Fl, Leesburg Fl, Ocala Fl, Tavares Fl, Clermont Fl, Lake County Fl, Marion County Fl, Sumter County Fl and all over Florida.
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