Did you know that at least 20 percent of the geological land in the US is prone to sinkhole incidents? Amongst all areas, the situation is the most complex in Florida, which experiences the highest sinkhole incidents. Sinkholes appear when the soluble rocks below the ground level erode and aren’t able to sustain any pressure on the ground. These circumstances make it mandatory that you opt for sinkhole insurance in Haines City Florida.
For any insurance needs call us at 407-344-1228 or email us at [email protected].
Why Do You Need Sinkhole Insurance
Sinkholes are catastrophic because these happen suddenly and cause irreparable losses. What’s more worse is that several home insurance companies don’t provide coverage for sinkholes as they are difficult to predict and are costly. That being said, home owners find it difficult to get covered against a sinkhole incident. Furthermore, insurance companies discontinue their policies in an area that has been affected by a sinkhole.
While it is difficult to get insured, it is more difficult to deal with a potential sinkhole situation that can undermine your safety. So, do any companies offer some sort of sinkhole insurance? The answer is, yes.
Types of Sinkhole Insurances
Insurance policies for sinkholes vary depending on the severity of the possible sinkhole and the cost that will be incurred on the repair and restoration. Based on this, there are mainly two types of sinkhole insurances.
1. Sinkhole Loss Coverage
Many major insurance companies offer some sort of insurance for sinkholes but, it may be limited to the incidents related to previous mining operations in the area. This means that a prominent insurance company will provide coverage for a sinkhole incident, but the policy may not include coverage for sinkholes that appear naturally.
However, some other insurance programs offer coverage even in case of a naturally occurring sinkhole. Moreover, homeowners nowadays consider probabilities of sinkhole incidents before they go ahead with their purchase.
2. Catastrophic Ground Collapse
This type of insurance is more wide-ranging as it requires the insurers to lay out a comprehensive plan for the coverage. Florida and Tennessee require insurance police to provide coverage for catastrophic ground collapse. Under this, any insurance policy that gives coverage for the sinkhole must meet the following criteria.
- The abrupt collapse of the ground surface.
- The hollowness or the depression created in the ground as a result of the collapse should be clearly visible.
- The collapse must also cause structural damage to the building that is covered by the insurance.
- The structure is vacated by a government agency in view of the damage to the structure of the building.
As evident from the above set criteria, it is indeed difficult for most sinkholes to fall under this category. The insured individual ultimately has to pay from their pocket to cover for the damages. Hence, it is more difficult for a sinkhole incident to fall under the category of basic loss coverage than it is to qualify for a catastrophic ground collapse policy.
What Happens After You Sign Your Insurance?
After you sign an insurance policy with the company, their representatives will visit your house to conduct a geological survey of the property. They visit different areas of the residence house to find out which areas are most prone to damage. The representatives might use certain equipment to determine that and estimate possible damages.
The primary reason of their visit is to make sure that there is no obvious risk of sinkhole collapse at your property. As far as the cost of this geological survey is concerned, it may vary, but it may cost the homeowner about $200. While the survey is expensive, it is mandatory because it helps find out exactly about the weak points of the structure.
Differentiating Sinkhole Insurance from Other Insurances
The difference to understand here is that any ground damage that is caused by an earthquake is not covered in a sinkhole insurance policy. Earthquakes and sinkholes are similar in the sense that both of them are difficult to predict. With sinkholes, you are able to tell which areas are more prone to it and therefore, sign up for an insurance plan in advance.
Is Sinkhole Insurance More Expensive in Some Areas
The fact that which insurance policy you should sign up greatly depends on which area you live in. If your city is more susceptible to sinkholes, then your coverage plan might be more expensive.
For instance, people living in Pennsylvania and Florida have to sign up for more comprehensive insurance plans because these areas have had a history of sinkholes. In counties where sinkholes occur a lot, the annual premium may cost more than $2,000. That is more than the insurance amount offered by homeowner insurance.
Is Sinkhole Coverage Worth It?
The fact of the matter is that many homeowners still do not opt for an insurance program because of the following two reasons.
- Although sinkholes pose a big threat, these still are not as common as some might think and that is why many homeowners decide not to sign up for it.
- The second reason that some homeowners do not go ahead with their insurance plan is that these plans are too much expensive. As detailed above, it might take a great deal of effort for homeowners to prove to the insurance company that catastrophic ground collapse has taken place.
What Measures to Take Before Claiming for Your Loss?
There are a few measures to consider before you approach the insurance company and let them know about your loss. If you come across a sinkhole incident that you should claim insurance for, here are the steps that you should take.
- Isolate the affected area with a duct tape to secure the site. It is necessary to keep the affected area unchanged so that you can claim your insurance in full.
- Note down important details of how and what exactly happened when the sinkhole appeared. These details can come in really handy to provide the details required for claiming the insurance.
- Be aware that the area near the sinkhole is also susceptible of collapse, so adhere to safety rules for you and those around you.
But what are the factors that make sinkhole insurance in Haines City Florida so important and why it is emphasized so much?
Do you Need Sinkhole Insurance?
As the famous saying goes, “it is better to be safe than sorry.” When a decision of not signing up for a safety program is made, it has to a lot to with the human psychology. People who became victims to sinkholes, either in their property or on the road, may never have thought that it would happen to them.
The reality is that when it does happen, there is very little you could do to prevent damage or avoid costly repairs. Let’s look at a few facts about why you should buy an insurance program.
1. Provides Complete Safety
Sinkhole insurance lessens your worry of damage to your house’s structure or a sudden loss of life due to it. Remember that sinkholes appear all of a sudden and undermine your safety and of those around you. It also helps you save a lot of money that you would otherwise spend to repair your structure.
2. Gives You Peace of Mind
If you live in an area that’s prone to floods and torrential rains, you may constantly worry that these may cause a sudden collapse in any part of your house or on the road when you are driving on a busy street. With an insurance plan, you are able to think positively and enjoy the peace of mind that it provides you.
3. Makes You a Wise Decision-Maker
Signing up for sinkhole insurance in Haines City Florida is always a wise move because it gives you an edge against any possible hazard. Instead of waiting for the sinkhole to appear, you are able to stay one step ahead in ensuring your safety and that of your property.
It is important to look for an insurance company that offers comprehensive but affordable coverage for sinkholes. If you live in Florida which mostly remains at risk of developing sinkholes, it is wise to get protected and approach an insurance company.
Last but not least, it is advisable to carefully study all clauses of the insurance policy before signing it in order to make the most of the coverage agreement.
For any insurance needs call us at 407-344-1228 or email us at [email protected].