Sinkhole insurance is a form of coverage that is usually required for mortgage in areas that are prone to sinkholes. The state of Florida is a good example of where sinkholes are common, making sinkhole insurance necessary for homeowners. Florida Statute 627.706 requires every insurance company to sell insurance for catastrophic ground cover collapse. Sinkhole coverage is usually an additional item in the home owner's insurance policy.
The damage caused by a sinkhole can be quite costly. If a homeowner lacks sinkhole coverage and sinkhole activity damages his home, his claim must meet all the necessary criteria for catastrophic ground cover collapse. If it does not meet all necessary criteria, insurance companies can legally reject the claim. Therefore, homeowners must ensure that sinkhole insurance is included in their home owner's insurance policy.
If sinkhole activity is confirmed in a home, it is vital to ensure safety of everyone. Securing personal property is only necessary if it is safe to do so. The local authorities and insurance company must be contacted early enough after evacuating a home. It is also crucial to hire a lawyer who is competent in handling sinkhole claims. New home buyers are usually required to hire a home inspector or professional engineering firm to check a home for any sinkhole activity.