Getting the right insurance
Question: I’m aware that there are now options on sinkhole coverage, and I’m concerned I may wind up buying the wrong coverage. What do I need to tell my insurance agent to make sure that I get the correct insurance?
Some people will tell you that there are two categories of coverage now available for sinkhole activity: standard sinkhole coverage and catastrophic ground coverage collapse.
In my opinion, catastrophic ground coverage is equal to no coverage at all. This is because the events that would need to occur to get coverage under that option are so rare and uncommon to render the coverage illusory.
Your sinkhole insurance options
If you want the standard sinkhole coverage, the agent needs to make sure that you have the coverage provided pursuant to. This is the standard coverage that has been available, in various forms, for decades.
At the completion of the blog post, I will include language that you can cut and paste into a letter to send to your agent. Keep a copy for yourself, in the event there is ever a problem
The catastrophic coverage is also provided for under Florida law, so you need to make sure to differentiate it from the standard coverage. As I have said many times, the catastrophic ground coverage collapse coverage would be equal to living in California and not having insurance for earthquakes. It simply is not wise.
Sample letter for your insurance carrier
Dear Insurance Professional:
I am requesting that the property insurance provided for my home located at [address] include the standard sinkhole insurance, as provided for pursuant to Section 627.706, Florida Statutes. I require coverage for the damage to my home, its foundation, and the land upon which it was built. I am rejecting any coverage that limits my loss to catastrophic ground coverage collapse, which is different from sinkhole coverage and requires unique elements. I am relying upon you, the insurance professional, to assure that I have the broadest sinkhole coverage available by law.