Insurance Claims

Sinkholes usually occur when the bedrock close to the surface erodes and leaves a cavity underground. When the pressure on the surface is high enough (due to heavy objects, structures, or heavy rains), the surface – and everything resting on top of it – collapses into the cavity below. Sinkholes are common in Florida, where much of the bedrock is made of the highly porous and easily dissolved limestone. Because of Florida’s unique geology, homeowners must seriously consider their exposure to sinkhole risk and their potential need for sinkhole coverage. Though coverage is required for “catastrophic ground cover collapse” by law, this does not include all sinkholes. Catastrophic ground cover collapse is defined as as “geological activity that results in all the following: The abrupt collapse of the ground cover; A depression in the ground cover clearly visible to the naked eye; Structural damage to the building, including the foundation; and The insured structure being condemned and ordered to be vacated by the governmental agency authorized by law to issue such an order for that structure.” Chapter 627 of the Florida Statutes also states: “Contents coverage applies if there is a loss resulting from a catastrophic ground cover collapse. Structural damage consisting merely of the settling or cracking of a foundation, structure, or building does not constitute a loss resulting from a catastrophic ground cover collapse.” If you live in Florida, it pays to be aware of sinkholes! If your sinkhole claim has been denied or underpaid, call MSPG today to discuss your options!