Catastrophic Ground Cover Collapse
Residential Coverage Type - Catastrophic Ground Cover Collapse
Florida Statutes 627.706 requires every insurer authorized to sell property insurance to provide coverage for catastrophic ground cover collapse and shall make available, for an additional premium , coverage for sinkhole losses on any structure, including contents of personal property contained therein, to the extend provided in the form to which the coverage attaches. A policy for residential property insurance may include a deductible amount applicable to sinkhole losses equal to 1 percent, 2 percent, 5 percent, or 10 percent of the policy dwelling limits, with appropriate premium discounts offered with each deductible amount.
Catastrophic ground cover collapse means:
- 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.
Contents coverage applies if there is a loss resulting from a catastrophic ground cover collapse.
Please Note: 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.
Residential Coverage Type - Sinkhole Coverage
Florida Statute 627.706 requires every insurer authorized to sell property insurance to provide coverage for catastrophic ground cover collapse and shall make available, for an additional premium, coverage for sinkhole losses on any structure, including contents of personal property contained therein, to the extend provided in the form to which the coverage attaches. A policy for residential property insurance may include a deductible amount applicable to sinkhole losses equal to 1 percent, 2 percent, 5 percent, or 10 percent of the policy dwelling limits, with appropriate premium discounts offered with each deductible amount.
A sinkhole loss means structural damage to the building, including the foundation, caused by sinkhole activity. Contents coverage shall apply only if there is structural damage to the building caused by sinkhole activity.
Please Note: Structural damage consisting merely of the settling or cracking of a foundation, structure, or building does not constitute a loss resulting from a Sinkhole.
Residential Deductible - Sinkhole
Residential property policies providing coverage for sinkhole losses may offer deductibles of 1 percent, 2 percent, 5 percent, or 10 percent of the policy dwelling limits, with appropriate premium discounts offered with each deductible amount. Reference: Florida Statute 627.706