Miami Home Insurance and Coverage for Damage Caused by Sinkholes
The sinkhole that damaged a resort near Clermont, Florida, recently, has once again turned the spotlight on the dangers caused by sinkholes in Florida.
The sinkhole that damaged a resort near Clermont, Florida, recently, has once again turned the spotlight on the dangers caused by sinkholes in Florida. While sinkholes are common in many parts of the country, Florida homeowners in general and Miami home owners in particular experience a lot of damage from them because of the limestone structure on which the state rests.
Cause
The heavy rains experienced in the state dissolve the limestone substructure and cause the ground under homes and buildings to sink. This can lead to structural damage to the home, including damage to the foundation, and can make the authorities declare the building condemned and unfit for habitation.
It can also kill the residents or anyone caught in a collapsing sink hole.
Mandatory Insurance
While in many parts of the country sinkhole insurance is not offered as part of regular homeowner’s insurance, it is mandatory in Florida. However, the definition of a sinkhole under the law requires four criteria to be met:
- Abrupt collapse of ground cover
- Depression in the ground cover that is clearly visible to the naked eye
- Structural damage to the building including damage to the foundation
- The insured structure being declared unfit for habitation by a suitable government authority
Exceptions
If the damaged home does not meet all of the criteria listed above, the home owner in Miami might not receive the compensation from the insurance provider unless they have additional coverage. Homeowners in Miami should consider a policy endorsement for additional coverage so that they are compensated if their home suffers from structural damage because of a sinkhole.
Increase in Sinkhole Activity
The Florida Office of Insurance Regulation has been tracking sinkhole insurance claims over the years. It has found that there is a slight increase in the number of claims from the Miami-Dade County which is not traditionally considered sinkhole prone area. More significantly, the study has found that the total expenses and loss experienced by homes damaged by sinkholes in the area also increased.
Legal Changes
With the increase in sinkhole claims, the Florida legislature has made changes to the law regarding them. Now, homeowners have a shorter time to make a sinkhole claim and the law also limits the type of structures that can be covered by this insurance. Besides, the law has repealed the electronic database for sinkhole activity and mandated that home insurance companies have the right to inspect the property before issuing a sinkhole cover.
Tips for Home Buyers in Miami
When home buyers in Miami look for property they need to take sinkhole insurance into consideration as well. While the median value of a house in Miami is $186,000 substantially higher than the Florida median of about $151,000, home buyers need to also look at the possibility of obtaining sinkhole insurance. This can be done by having potential homes inspected by an expert to ensure that the home insurance company will issue the necessary cover. As sinkhole damage can be expensive to repair, a home buyer in Miami needs to factor this in as well.
Florida Home Insurance Quotes
If you have questions about your current homeowners insurance policy and would like to speak with a Florida licensed insurance agent, please call 855-333-4629 today!
If you would like to request a quote online then our agents can provide up to 12 competitive home insurance quotes from carriers like Citizens Property Insurance Corporation, American Modern Insurance Group, People’s Trust Homeowners Insurance, Florida Pennisula Insurance Company, Federated National, Bankers Insurance Group, Fidelity National Property and Casualty Insurance Group, Foremost Insurance Group and many more. Start Your Florida Homeowners Insurance Quote Today!