Insurance companies price premiums based on the probability of one occurring. Sinkhole insurance, like coverage for earthquakes, is often expensive. In some Florida counties with a history of sinkholes, sinkhole insurance may cost
around $2,100 per year
— more than the average homeowners insurance policy in the state.
Are sinkholes covered by homeowners insurance?
No
, standard homeowners insurance will not cover sinkholes or any other so-called earth movements, like earthquakes and landslides. However, you may be able to add sinkhole coverage to your policy for an additional premium or purchase it separately.
Should you get sinkhole coverage?
If you own a home in a high-risk sinkhole area,
sinkhole insurance
is worth it for some people. Without sinkhole insurance, you would have to pay out-of-pocket to repair or rebuild your home. Remember that most homeowners insurance companies do not cover sinkhole claims.
What does sinkhole insurance cost in Florida?
A sinkhole homeowners insurance endorsement in Florida can seem expensive at first. Most policy quotes range from
$2,000 to $4,000 a year
and can come with a high deductible. Considering, however, that the average sinkhole insurance claim exceeds $100,000, the quotes you find may prove worth the added cost.
How do I know if I need sinkhole coverage?
Abrupt collapse of the ground cover must occur
. Depression in the ground must be clearly visible to the naked eye. Structural damage must be done to the building covered, including the foundation. Insured structure must be condemned and ordered vacated by the government agency authorized to do so.
What are the odds of a sinkhole?
Sinkhole risk
The actuarial risk of a catastrophic sinkhole happening is low—researchers put it at
a one-in-100 chance of occurring in any given year
. The U.S. Geological Survey says there is not yet an efficient system to determine if there is—or isn’t—a sinkhole on your property.
What happens if your house is on a sinkhole?
When a sinkhole forms near or under your house, you’ll see
subtle warning signs
. Doors will jam and stop latching. Windows that used to open easily become hard to open, start sticking, or won’t open or close completely. You might notice that your cabinet doors and drawers sit unevenly or won’t open or close properly.
What is the difference between catastrophic ground collapse and sinkhole?
Coverage Comparison
Catastrophic ground cover collapse coverage is very restrictive and must meet all four criteria listed above to qualify for a loss.
Sinkhole coverage does not require the building to be condemned
and ordered to be vacated for coverage to trigger.
Does State Farm have sinkhole coverage?
In most states,
sinkholes are not covered by homeowner’s insurance policies from State Farm
, the No. 1 home insurer in the country. “Damage from them is specifically excluded,” spokesman Kip Diggs says.
How much does it cost to repair a sinkhole?
A small sinkhole with minimal damage to the structure may cost anywhere from $10,000 to $15,000. However, sinkholes that cause extensive damage and need a significant amount of work to repair or revive the structure, may be much pricier, costing anywhere
from $20,000 to $100,000
, or more.
Where in Florida is the least amount of sinkholes?
Sinkholes are less common in
South Florida
, home to the state’s two most populous counties – Broward and Miami-Dade.
Are sinkholes common in Florida?
Sinkholes are
a common feature of Florida’s landscape
. They are only one of many kinds of karst landforms, which include caves, disappearing streams, springs and underground drainage systems, all of which occur in Florida.
Which state has the most sink holes?
The most damage from sinkholes tends to occur in
Florida
, Texas, Alabama, Missouri, Kentucky, Tennessee, and Pennsylvania.
Who is responsible for a sinkhole?
Sinkholes on private property are the responsibility of
the property owner
. In some cases the owner’s property insurance may cover evaluation and repair of the sinkhole. Actual coverage may vary according to circumstances and insurance company policy. 11.
Does insurance pay for sinkholes?
Most standard homeowners insurance policies exclude coverage for sinkhole formation
. Homeowners policies are generally valued based on the cost to rebuild the physical structure of your home. … This means that a sudden movement of that land, including sinkholes, won’t normally be covered by a regular homeowners policy.
