The sinkhole deductible
While a sinkhole deductible may sound like a simple, normal aspect of an insurance policy, it is something that should be avoided at all costs; it can make for a very expensive sinkhole repair, even with your insurance coverage.
A sinkhole deductible acts differently
In insurance policies of all types, like health and car insurance, generally require a deductible of some kind, and a 10% deductible can seem great! However, most of these deductibles mean that you get the help that you need, and can worry about covering 10% of the cost down the road when you have a moment to think.
However, the sinkhole deductible is a different story, which means it’s an easy trap to fall into because many policyholders assume it’s the same as any other deductible. In fact, a sinkhole deductible can actually stop or prevent you from completing any repairs on your sinkhole!
What does a sinkhole deductible do?
The big difference is that many insurance companies require you to begin the repairs on your sinkhole before they issue any payment to you. This may not necessarily be a big deal with minor sinkhole cases if you have a healthy savings account, but for those of you more dependent upon your sinkhole insurance, you may be stuck.
With a 10% sinkhole deductible, you may be paying tens of thousands of dollars upfront of repair the sinkhole underneath your home, and be left hoping and praying that your insurance company accepts the cost and reimburses 90% of the price before you need that money! If you don’t have the cash to begin with, and your sinkhole creates a situation in which your home is not safe to live in, you may be in a pickle. You will not be able to have your sinkhole repaired without paying the cost upfront.
A cheaper insurance premium may cost you in the end
Therefore, if you’ve been presented with the opportunity to lower your monthly premium by electing for a 10% sinkhole deductible, turn the other way. You may not only be signing up for a more difficult situation but a circumstance in which you cannot afford to fix a sinkhole that opens under your home.