Sinkhole Opens up in Land O Lakes, evacuations (Dade City: 2015, insurance)

[kmarc]

Ocean Pines Drive, Lake Padgett area. Evacuations ordered, power being cut. Stay tuned.

Sinkhole forces Florida neighborhood to evacuate

[HWTechGuy]

Crazy stuff. Been hearing about it all day on the radio while I was out working.

Hopefully it makes more people aware, as many incorrectly believe that only certain towns have the potential for sinkhole issues.

[kmarc]

Originally Posted by HWTechGuy

Crazy stuff. Been hearing about it all day on the radio while I was out working.

Hopefully it makes more people aware, as many incorrectly believe that only certain towns have the potential for sinkhole issues.

The video was shocking in how fast it happened. I agree, people seem to be rather complacent on this sinkhole issue. Frankly, I don't understand how Pasco gets away with such massive development. Years ago we considered buying something in Dade City. At that time, we were told we'd have problems getting insurance, because Pasco was rated the worst county in Florida for sinkholes. This was early 2000s. Fast forward to today, and now look at the 54 corridor. Wall to wall. How do all those people get insurance?

[PBToast]

Some insurance companies do opt not to cover people in those areas. You have to find one that does. But it may cost you a fair amount. Some do sinkhole insurance as a separate rider you can choose and pay separately for.

You are probably best off if the house totally collapses and they have to pay. A small sinkhole problem is more controversial.

[EngGirl]

I tried to get additional insurance for sinkhole and not even single insurance company offered it. I was told its no longer an option

[bobandsherry]

Those concerned may want to educate themselves on this type of damage. You do not need sinkhole coverage (expensive -
and for reasons there was a lot of fraud/abuse) for this type of damage, this is covered under catastrophic ground cover collapse (all Florida policies include). IMHO his type of loss is covered under catastrophic ground cover collapse as it clearly appears to meed the 4 criteria as outlined for such loss.

Catastrophic ground cover collapse” is defined as “geological activity that results in all of the following:

1). The abrupt collapse of the ground cover;

2). A depression in the ground cover clearly visible to the naked eye;

3). Structural damage to the building including the foundation; and

4). The insured structure being condemned and ordered to be vacated by the government agency authorized by law to issue such an order for that structure.”

References:

• What is the difference between Catastrophic Ground Cover Collapse and Sinkhole Coverage?

• Sinkhole Activity vs. Catastrophic Ground Collapse: Home Insurance in Florida

• What is the difference between "Sinkhole" and "Catastrophic Ground Collapse"

[kmarc]

Originally Posted by bobandsherry

Those concerned may want to educate themselves on this type of damage. You do not need sinkhole coverage (expensive -
and for reasons there was a lot of fraud/abuse) for this type of damage, this is covered under catastrophic ground cover collapse (all Florida policies include). IMHO his type of loss is covered under catastrophic ground cover collapse as it clearly appears to meed the 4 criteria as outlined for such loss.




Sinkhole Activity vs. Catastrophic Ground Collapse: Home Insurance in Florida

What is the difference between "Sinkhole" and "Catastrophic Ground Collapse"

Interesting. I did not know that. Seems like sinkhole insurance would be sort of redundant, then.

[bobandsherry]

Originally Posted by kmarc

Interesting. I did not know that. Seems like sinkhole insurance would be sort of redundant, then.

Yeah, when I was looking for insurance here I spoke with my insurance agent about possible sinkhole losses. He informed me of the differences. My concern was in regards to the home being totally destroyed (like the home in LOL) and he told me my basic policy provided that coverage and that all policies in Florida had to cover those losses. He also explained the subtle difference in losses covered by Sinkhole coverage.

Sinkhole coverage was what created a lot of fraud and abuse. Previously homeowners could have minor damage (including cracks in driveways, sidewalks, patios), file a claim and then and pocket the claim money. The law was changed to prevent this type of abuse.

According to the 2015 Florida Statute 627.706, the coverages are defined as follows:

Catastrophic Ground Cover Collapse

Definition: geological activity that results in the following:
1. The abrupt collapse of the ground cover;
2. A depression in the ground cover clearly visible to the naked eye;
3. Structural damage to the covered building, including the foundation; and
4. 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.

Coverage: Contents coverage applies if there is a loss resulting from a catastrophic ground cover collapse. 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.

Sinkhole

Definition: settlement or systematic weakening of the earth supporting the covered building only if the settlement or systematic weakening results from contemporaneous movement or raveling of soils, sediments, or rock materials into subterranean voids created by the effect of water on a limestone or similar rock formation.

Coverage: A Sinkhole loss means structural damage to the covered building, including the foundation, caused by sinkhole activity. Contents coverage and additional living expenses apply only if there is structural damage to the covered building caused by sinkhole activity.

Source:Sinkhole vs Catastrophic Ground Cover Collapse Coverage

Other references:

• Florida Sinkhole Insurance Facts

• New Florida law takes aim at sinkhole fraud

[kmarc]

Well, I don't know if you're bob or sherry, but I just wanna say, you are awesome. I have observed that you do your research and I thank you for passing it on to the rest of us.

[HWTechGuy]

That's excellent information.