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Decoding your Home Insurance Policy: The Difference Between a Catastrophic Ground Cover Collapse and a Sinkhole

Knowing all of the details of your home insurance policy is key to making sure you have the right coverage. Working with an insurance agent is also helpful in reviewing your policy to determine if you need to make any changes. One area that often causes a lot of confusion in the insurance industry is discerning the difference between a sinkhole and a catastrophic ground cover collapse. Both of these terms sound similar, but they are actually two different things.

What is Considered a Sinkhole?
A sinkhole is an all too common risk for anyone living in Florida. These sinkholes are caused by a lack of underlying structure within the ground due to water erosion. Limestone is especially susceptible to sinkholes because it’s a porous rock that can eventually crack and collapse over time because of excess water. Sinkholes can also form in different ways, whether it’s someone drilling for wells, taking too much groundwater, or a drought. Sometimes a sinkhole will barely cause any damage, while others can swallow an entire building and lead to more than hundreds of thousands of dollars in damages.

Will My Home Insurance Cover Sinkholes?
Staying proactive by making sure your home insurance policy covers sinkhole damage is key to protecting your investment. However, not every insurance policy for homes will cover sinkhole damage, which is why it’s important to check out the details of your coverage. For example, Florida requires home insurance policies to include “catastrophic ground cover collapse coverage,” but this doesn’t always provide enough coverage for sinkholes if it doesn’t meet the exact requirements. You may need to purchase a sinkhole insurance rider to make sure you are well-protected from these events.

What is the Difference Between Sinkhole Coverage and Catastrophic Ground Collapse?
Both of these terms sound interchangeable, but there are a few key differences. While catastrophic ground cover collapse coverage is already included in your home insurance policy, your claim must meet a few requirements if you expect to be reimbursed for your loss. These four requirements for ground cover collapse coverage include:

  • Abrupt Collapse of Ground Cover
  • A Visible Depression in the Ground
  • Structural Damage to Your Building and its Foundation
  • Must be Condemned and Ordered to Be Vacated by Governmental Agency

All of these four conditions need to be met for a sinkhole to be considered a catastrophic ground collapse. On the other hand, you will need a sinkhole insurance policy if you don’t meet all of these requirements. Discussing your options with an insurance agency can help you determine the best decision for your situation.

Why You Need to Consider Sinkhole Insurance
Buying sinkhole insurance is often recommended for anyone living in Florida. Purchasing sinkhole coverage is especially important if the area you live in has a history of sinkholes or irregular weather patterns. However, not all insurance providers offer this type of policy. Comparing all of your options by getting multiple quotes is important in finding the right coverage that fits within your budget. An insurance agent can also work with you in comparing policies to ensure you find the right coverage to meet your needs.

How Much Does Sinkhole Insurance Cost?
The cost of sinkhole insurance can vary between insurance providers. Typically, a policy can range anywhere from $2,000 to $4,000, and it includes a high deductible. While sinkhole insurance can be costly, it can be worth the price due to the average sinkhole insurance claim exceeding more than $100,000. An insurance agent can help you compare multiple quotes to find the best rate available.

Reach Out to Wellcovered Insurance for Additional Information
Wellcovered Insurance can help you find the best insurance policy to meet your unique needs while staying within your budget. We work with a wide range of clients throughout Volusia and Seminole Counties. Our insurance agency is one of the highest-rated in the area, as we focus on providing the best customer experience, and our team is always happy to answer your questions.

You can also choose other insurance options, whether you need insurance for rental property, boats, cars, motorcycles, RVs, commercial property, and much more. Our team can easily provide you with a quote for auto insurance in 15 minutes, while it only takes either one or two business days to receive a home insurance quote. We will always return your phone calls, and you can stop by and visit us at our local office.

Keeping an active presence in the community is also a priority, as we are proud members of the West Volusia Regional Chamber of Commerce and the Deland Breakfast Rotary Club.

Give Wellcovered Insurance a call today to schedule a no-cost consultation for home insurance in Florida!