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Can I get cover holes in Florida?



Good question and the answer is maybe, but probably not. Unfortunately, in the mid-2000s, the insurance industry had a crisis on its hands that caused some companies to leave Florida, or worse, become insolvent. There were some lawyers and public adjusters who began to "test" the language in the insurance policy who stated that a sinkhole was the "solution and cracking that can be caused by a sinkhole". Most homes in Florida have cracks or damage to homes. Our homes are usually built on clay and / or sand, but it can be a sinkhole.

Therefore, when the economy crashed, some lawyers would actually tell clients that they could get them out of debt by filing a sinkhole with their companies. . Billboards in Pasco and Hernando began to appear with the text “Are you considering filing for bankruptcy? Call us. Another said: "Do you have decommissioning or cracking? Can be a sink. Call us."

When a sinkhole application was filed, it became common practice for the insurance company to send out a geotechnical company to drill holes in the ground around the property and check for pockets and cost the companies $ 1

5,000 or more per claim. Not all claims were covered, but since lawyers and public supporters would receive a percentage of a "claim payment", they would make money even if their client did not.

To stop the bleeding, most companies no longer covered "sinkholes", they would only cover "catastrophic ground collapse", which is a visible sign of a hole that makes the home doomed and inevitable, other companies went to 10% deductible in sinkhole, in the hope that the client would not file a fraudulent sinkhole claim knowing that they would have to pay $ 20,000 in engineering costs to investigate the property.

Today, some companies will offer sinkhole coverage with a 10% deductible, but they will require a sinkhole inspection to add to this coverage.It costs the consumer about $ 150 and the inspector basically only counts the number of cracks in the home and on the driveway and sidewalk.Over 80% of the inspections fail, so we usually do not even put our customers through this option.There are a few companies, such as Progressive and Cabrillo, that will offer sinkhole coverage (with 10% deductible) for new construction without inspection but overall, the industry has not fully recovered.

As a side note, the industry has a new crisis on its hands and it is called "Allocation of benefits". Unfortunately, when the well runs dry in an area, there are some people who find another loophole to try to cheat money from insurance companies. Yesterday's story about sinkhole is today's roof and water damage.


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