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Sinkholes: III Says Homeowners Should Consider Supplementall Sinkhole Coverage |
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08/05/2008 |
Florida Press Office - Lynne McChristian
(813) 480-6446
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www.iii.org
FOR IMMEDIATE RELEASE
KNOW YOUR RISK FOR SINKHOLE DAMAGE;
HOMEOWNERS SHOULD CONSIDER SUPPLEMENTAL INSURANCE
Rainy Summer Weather Is Sinkhole Season
TAMPA, August 4, 2008 — Summer is sinkhole season in Florida, a time when additional rainfall is absorbed into the porous limestone beneath the soil’s surface and can cause the ground to collapse.
Your homeowner insurance policy already covers a major loss from sinkholes, if an abrupt collapse of the earth makes your home uninhabitable. But if you live in an area that is especially vulnerable to sinkhole damage, the Insurance Information Institute (I.I.I.) suggests you consider purchasing supplemental sinkhole coverage.
Sinkholes can occur anywhere in the state, according to the Florida Department of Environmental Protection. West Central Florida and the Tampa Bay area are especially vulnerable. The Florida Geological Survey has a poster tracking sinkholes that have been reported in the state since 1954.
“The ground can suddenly collapse and form sinkholes anywhere and anytime, but this is the time of year when we start hearing stories of sinkholes dotting the landscape in Florida. They serve as a reminder that you should get the facts about your area’s risk level. It’s also a good idea to ask your agent or insurance company representative for information on the sinkhole coverage options available,” said Lynne McChristian, Florida representative for the I.I.I.
In 2007, the Florida Legislature took action to give homeowners more options for managing the costs and coverage of their insurance. For sinkholes, the new law stated that all private property insurers in the state must provide insurance coverage for “catastrophic ground cover collapse” in the standard homeowner insurance policy. This was defined as damage extensive enough to make a home uninhabitable.
If property owners want more extensive “comprehensive sinkhole coverage,” it can be purchased separately at an additional cost from their insurer. Comprehensive sinkhole coverage pays for structural damage, such as cracks in a home’s foundation.
Insurers in Florida are handling the new sinkhole law change in varying ways. Some companies may have removed comprehensive sinkhole loss coverage, and homeowners can add it back with a separate policy if they want such coverage. Others have added full sinkhole loss coverage, and homeowners who do not wish to pay for this optional coverage can reject it in writing. This law has been taking effect on homeowner insurance policies as they renew, beginning in late 2007.
For more information about insurance, go to the I.I.I. Web site.
The I.I.I. is a nonprofit, communications organization supported by the insurance industry.
Insurance Information Institute
4775 E. Fowler Avenue
Tampa, FL 33617 (813) 675-1054
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