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The difference between Sinkhole and Catastrophic ground cover collapse

Sinkhole Coverage

A sinkhole, also known as a sink, shake hole, swallow hole, swallet, doline or cenote, is a natural depression or hole in the Earth’s surface caused by karst processes — the chemical dissolution of carbonate rocks[1] or suffosion processes[2] for example in sandstone.

Sinkholes may vary in size from 1 to 600 meters (3.3 to 2,000 ft) both in diameter and depth, and vary in form from soil-lined bowls to bedrock-edged chasms. Sinkholes may be formed gradually or suddenly, and are found worldwide. The different terms for sinkholes are often used interchangeably

Catastrophic ground cover collapse

On the other hand, covers only a small portion of damages caused by sinkhole activity. Under Florida law, catastrophic ground cover collapse includes geological activity resulting in the following:

• Abrupt loss of ground cover
• A depression in the ground clearly visible to the naked eye
• Structural damage to the building, including the foundation
• Government condemnation of the insured structure and an order to vacate the premises
• By the express terms of the coverage, catastrophic ground cover collapse only covers damages when the insured property is condemned by a governmental agency and ordered vacated.

Consider the damage that the property must sustain before a government agency would force a family out of their home, and it becomes clear just how worthless this coverage is.

There will be sweeping changes

Here in the near future to home insurance polices in the near future. To higher deductibles for sinkhole coverage to buy back option sometimes requiring an inspection and even excluding the coverage all together.

There are bills being passed as I write this, for more information contact me.

Don Westerfeld 4/29/2011 7:17:00 AM