Catastrophic ground cover collapse coverage and sinkhole coverage are both types of coverage offered under homeowners insurance in Tampa Florida, but they cover different types of events.
Catastrophic ground cover collapse coverage protects homeowners if their home experiences a sudden and catastrophic collapse of the ground cover. Experts define this coverage as the abrupt collapse of the ground cover that results in a depression in the earth that is visible to the naked eye, which is of a depth greater than two feet. The collapse must also have occurred suddenly and not gradually over time.
In contrast, sinkhole coverage protects homeowners if their home suffers damage due to sinkhole activity. This coverage typically includes damage caused by the earth’s sinking, settling, or shifting, as well as the movement or fracturing of the ground beneath a home.
While both types of coverage can provide important protection for homeowners in Florida, it’s important to note that sinkhole coverage is typically much more comprehensive than catastrophic ground cover collapse coverage, as it covers a wider range of events and can provide coverage for a broader range of damages.
In Florida, the law states that all homeowners insurance policies must include catastrophic ground cover collapse coverage. However, it’s important to note that this coverage is only necessary to cover damage caused by the specific event of a catastrophic ground cover collapse as defined by Florida law. This means that if your home suffers damage as a result of a sinkhole or another type of earth movement that doesn’t meet the specific criteria for catastrophic ground cover collapse, you may not have protection.
In Florida, the specific criteria for catastrophic ground cover collapse coverage are pretty narrow under the law. According to Florida Statute 627.706, a catastrophic ground cover collapse is defined as follows:
- The abrupt collapse of the ground cover;
- A depression in the ground cover is visible to the naked eye;
- The depression is of a depth of at least two feet;
- The collapse is sudden and not expected;
- The failure of the underlying limestone, dolomite, or other similar rock formations causes the collapse.
It’s important to note that the collapse must meet all of these criteria to be considered a catastrophic ground cover collapse under Florida law. If any of these criteria are unmet, catastrophic ground cover collapse coverage may not cover the damage.
Additionally, it’s important to note that catastrophic ground cover collapse coverage only covers the direct physical loss caused by the collapse. It does not cover the cost of stabilizing the land or preventing future collapses. Coverage for these costs may be available under a separate sinkhole coverage endorsement or a different policy altogether.
Adding sinkhole coverage to homeowners insurance in Tampa Florida is typically not difficult, but it may depend on the specific insurance company and policy that you have. Many insurance companies in Florida offer sinkhole coverage as an optional endorsement or rider to their standard homeowners insurance policies, which means that you can add this coverage to your policy relatively easily.
However, it’s important to note that sinkhole coverage can be expensive in Florida due to the state’s high risk of sinkhole activity. As a result, some insurance companies may require additional underwriting or inspections before adding sinkhole coverage to a policy.
Another factor to consider is that sinkhole deductibles can be higher on homeowners insurance in Tampa Florida policies than deductibles for other types of losses. This is because sinkhole damage can be very costly to repair and there is a higher risk of sinkhole activity in Florida than in many other states.
In Florida, the law states that insurance companies must offer a range of deductible options for sinkhole coverage. The minimum deductible for sinkhole coverage is 10% of the dwelling coverage limit, but higher deductible options are also available. Some insurance companies may offer deductibles as high as 20% or 25% of the dwelling coverage limit.
It’s also important to note that the deductible for sinkhole coverage is separate from the deductible for other types of losses, such as hurricane or wind damage. This means if a sinkhole and another covered event damage your home, you may be responsible for paying two separate deductibles.
In Florida, the deductible for Catastrophic Ground Cover Collapse Coverage is typically much lower than the deductible for sinkhole coverage. This is because the criteria for a catastrophic ground cover collapse are much more specific and limited than sinkhole coverage.
According to Florida law, the maximum deductible for catastrophic ground cover collapse coverage cannot exceed 2% of the dwelling coverage limit. However, some insurance companies may offer lower deductibles, such as a flat dollar amount, for this coverage.
**This blog provides a brief overview of the terms and phrases used within the insurance industry. These definitions are not applicable in all states or for all insurance and financial products. This is not an insurance contract. Other terms, conditions and exclusions apply. Please read your official policy for full details about coverage. These definitions do not alter or modify the terms of any insurance contract.