• 03
  • August
    2010
I recently heard from a client who told me they have decided to save on premium costs and cancel their sinkhole insurance coverage.  Instead, they purchased catastrophic ground cover collapse coverage, which their insurance agent told them would protect them against “real” sinkhole activity.  The agent also told them they could simply add sinkhole coverage back on to the policy later, if they wanted to. On a scale of 1 to 10, 10 being “accurate and credible” and 1 being an “outright falsehood,” this falls as a zero.  Here’s why…

Once Sinkhole Coverage is Gone, It’s Gone Forever

If you permit your sinkhole coverage to lapse, either by electing to change your policy, or because you are in a county where you are automatically losing it, unless you tell them to add it (Hernando County and Pasco County), you cannot add it back in for any insurance company.  For virtually any insurance carriers of which I am aware, the only manner in which you can obtain sinkhole insurance again for a property is to “confirm” to them that there is no sinkhole at the property.  Note, most sinkhole activity arises in subtle, structural settlement, not a large hole in your yard.  Thus, it requires you to obtain a certified opinion of a professional geologist who can both test your property and prepare a written opinion that sinkhole activity is not present.  If you want to do this, you must do so at your own expense, which is about $8,000.

For Sinkhole Coverage, There is No Turning Back

The biggest problem would be this:  imagine that you want to add it back in to your policy, once it is gone.  At that point, you decide to spend the money for the investigation, and they actually find sinkhole activity, even if it is minor.  Now, you are unable to get the coverage, yet you know you have sinkhole activity at your home.  Suffice to say, you are facing a monumental loss, and have no insurance for it.  As such, I tell clients this:  if you lose the coverage, there is no turning back. Sinkholes are a part of the Florida landscape.  Like anything else, sinkhole insurance coverage is part of the expense of owning a home.  I keep sinkhole coverage for my home, even though my carrier just bumped my premium up 40 percent last year. If you have a situation requiring legal representation for a sinkhole damage claim, contact Corless Zinober FL personal injury lawyers at 866-969-2889.
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3 Tips to Insure a Hassle Free Sinkhole Insurance Claim