Optional Sinkhole Coverage guidelines

Posted by on Mar 26, 2013 | 0 comments

Hello again.  In a follow-up to last weeks post, I thought we would go into more detail with regards to Optional Sinkhole Coverage.  Over the past couple of years, Florida Homeowners may have received a notice from their Florida Insurance Company explaining that sinkhole coverage was being removed from their homeowners insurance policy.  This has prompted many consumers to contact their agent with plenty of questions.

You may have been told that there are some Florida Insurance companies who will still offer a Florida Homeowner the Optional Sinkhole Coverage.  While this is true, I want to make it clear that there are some requirements that may need to be met if you want this extra coverage.  First, the insurance companies offering this coverage will most likely want you to obtain a Sinkhole Screening Property Inspection from SDII Global Corporation.  The inspection is conducted by a trained SDII Inspector who gathers data and photos inside the dwelling, outside the dwelling, around the property, and in the surrounding neighborhood.

The inspection is not the problem.  The fact that you, as the homeowner wanting the extra coverage, will have to pay approximately $140 from your pocket to have the inspection performed may be the problem.  Secondly, it has been my experience as a Florida Insurance Company that most homes will not qualify for the extra coverage after the inspection is completed.  The inspection company sends the inspection report to the insurance carrier for review.  After review, many companies decline to add the coverage at the homeowners request.  Once the underwriter for the insurance company reviews the report and notices any signs of cracking in the driveway or on the exterior wall, or nail pops in any of the rooms of the home, the underwriter will decline to offer this coverage.  You may have wasted your time and money in the long run.  These are all tips to consider when thinking about signing up for Optional Sinkhole Coverage.

We will do our best to continue to post helpful information and tips every week.  Please give Focus Insurance Group  a call at 813-712-4191 if you have any questions.

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