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Sinkholes and catastrophic ground collapse can cause extensive damage to your home. With catastrophic ground collapse, the ground gives out and causes structural damage to a building and its foundation.<\/p>\n
Sinkholes \u2014 which can cause catastrophic ground collapse \u2014 typically occur in states like Alabama, Florida, and Texas. In these areas, it\u2019s easier for water to collect underground and dissolve the rock below the surface. If you live in a state with a high risk of sinkholes, it\u2019s important to understand what catastrophic ground collapse coverage is and how it works.<\/p>\n
Here\u2019s what you need to know about catastrophic ground collapse coverage:<\/b><\/p>\nWhat is catastrophic ground collapse coverage?<\/h2>\n
Catastrophic ground collapse coverage is a form of insurance that kicks in if your home becomes uninhabitable due to a ground collapse. It\u2019s different from sinkhole insurance, which is a separate coverage you must purchase if you want to cover smaller instances of damage that sinkholes cause.<\/p>\n
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Does my homeowners insurance policy cover catastrophic ground collapse?<\/h2>\n
Most standard homeowners insurance policies exclude damage caused by earth movement, such as ground collapse. However, in Florida, insurers are required to make catastrophic ground collapse coverage part of a standard homeowners insurance policy.<\/p>\n
In addition, insurance carriers in Florida and Tennessee must offer sinkhole coverage <\/a>either as an optional rider<\/a> (add-on) to your home insurance policy or as a stand-alone policy.<\/p>\n
\nGood to know: <\/b>In Florida, in order for catastrophic ground collapse coverage to kick in, the damage must meet all four of the following criteria:<\/p>\n- \n
- Abrupt collapse of ground cover<\/li>\n
- Structural damage to a covered building, including the foundation<\/li>\n
- Depression in the ground cover that\u2019s clearly visible<\/li>\n
- The insured structure is condemned and ordered to be vacated by the appropriate government agency<\/li>\n<\/ol>\n<\/div>\n<\/div>\n
If your standard homeowners insurance policy<\/a> does include catastrophic ground collapse coverage, it\u2019ll cover the costs to repair or replace your home (up to your coverage limit) as well as your personal belongings, since personal property coverage is around 50% to 70% of the insurance you have on the structure of your home.<\/p>\n
Your policy\u2019s additional living expenses or loss of use coverage<\/a> will also cover the costs of living away from your home if it\u2019s deemed uninhabitable due to catastrophic ground collapse or a sinkhole.<\/p>\n
See Also:<\/i><\/b> What Does Homeowners Insurance Cover?<\/i><\/a><\/p>\n
How does catastrophic ground collapse coverage work?<\/h2>\n
If your home has damage from a catastrophic ground collapse and you\u2019ve evacuated to a safe place, it\u2019s time to contact your insurer. Ask to file a claim and provide any photos and supporting information. You should also notify your city or county building inspection department. An engineer or geologist will come out and assess the damage.<\/p>\n
In order for catastrophic ground collapse coverage to kick in after you pay your deductible, the damage must meet all four criteria explained earlier. This means the damage should be physically visible with structural damage clearly present, and the home must be deemed uninhabitable. Your insurance provider will also likely perform geological testing to determine whether a sinkhole was the cause of the damage.<\/p>\n
\nGood to know:<\/b> If you don\u2019t meet all four of the criteria, and you don\u2019t have sinkhole insurance, your insurance carrier won\u2019t pay for the damage. If you do have coverage and your insurer approves your claim, your insurance carrier will provide the funds to repair or rebuild your home up to your coverage limit, minus your deductible<\/a>.<\/div>\n<\/div>\nCatastrophic ground collapse vs. sinkholes<\/h2>\n
Sometimes, people may refer to a catastrophic ground collapse as a sinkhole, but the two shouldn\u2019t be used interchangeably since they have some key differences.<\/p>\n
Florida law provides a definition for both sinkholes and catastrophic ground cover collapse. A sinkhole is \u201ca landform created by subsidence of soil, sediment, or rock as underlying strata are dissolved by the groundwater.\u201d Meanwhile, a catastrophic ground collapse is considered a geological activity that causes severe damage to a building\u2019s structure and its foundation.<\/p>\n
Here\u2019s a breakdown of how a catastrophic ground collapse compares to a sinkhole:<\/p>\n
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