Hello everyone. With the recent media attention sinkholes have received over the past month or so here in Florida and my experience as with Florida Home Insurance, I thought I’d take a few moments to chat with you about how you might be affected.
First, let me ease any fear you, as a homeowner here in Florida, might have. Most consumers do not know that there are two types of sinkhole coverage. If you have a Homeowners Insurance policy (HO3), you are covered for a catastrophic sinkhole, such as the one seen on TV, in which the house was condemned. Every HO3 policy written by Florida Insurance Companies must have this coverage. The keyword is condemned. In order for this coverage to kick in, the home must be classified as such. The technical insurance term for this coverage is ‘Catastrophic Ground Cover Collapse.’
The second type of sinkhole coverage Florida Home Insurance Companies may have discussed with you is ‘Optional Sinkhole Coverage.’ This is where the confusion often starts because of how the coverage is worded. This coverage is not required and can usually be purchased at an extra cost. This coverage pays for structural damage caused by damage in which the home is not condemned, such as cracking in the homes foundation. When you hear on the news that Florida Insurance Companies are no longer providing sinkhole coverage, this is the optional coverage they are talking about.
If you have any questions or concerns about your policy or want to discuss options for a new Florida Home Insurance Policy, please call Focus Insurance Group at 813-712-4191 to discuss this matter in further detail.