Sinkhole Coverage vs. CGCC Coverage

Know How Your Policy Covers for Sinkholes

“What is Catastrophic Ground Cover Collapse and what 4 components are required for this coverage to be triggered?”

• An abrupt collapse of the ground cover
• A visible depression in the ground
• Structural damage to the building
• The structure is condemned and vacated

**This coverage is mandatory and all Florida home insurance companies are required to provide it**

“What is Sinkhole Loss Coverage and what is required for this coverage to be triggered?”

• Not all 4 components are required as they are with CGCC
• There must be structural damage to the house and/or foundation
• Optional to have and is not required to be purchased
• Florida home insurance companies will require a sinkhole preinspection which is not refundable and must be paid by the insured. If the inpsection does not pass, the insured will not be granted sinkhole loss coverage and the cost of the preinspection will be forfeited at the insured’s expense
• A whopping 10% deductible applies and is required to be paid by the insured before the insurance company covers any damage. This is 10% of your dwelling amount of your policy, NOT the cost of damages

**This coverage is NOT mandatory for Florida home insurance companies to provide to policyholders**

Example of Sinkhole Loss Deductible 10%:

$200,000 Dwelling X 10% Sinkhole Deductible = $20,000 out of pocket before repairs

Please take a minute to watch the video above. This will ensure you have a full understanding of your policy coverage and limits as well as help you make informed decisions when you are looking to purchase new insurance.

One of our licensed agents may also assist you with understanding sinkhole loss coverage vs. catastrophic ground cover coollapse and answer any questions you may have.