Sinkhole insurance has the potential to be dramatically reduced with Florida Legislature
As more sinkholes are appearing throughout the state, a new plan under Florida legislature can make coverage much more affordable. The bill will allow for insurance carriers to offer new sinkhole damage policies with limitations, some of these limits include only covering the cost of repairing foundations and stabilizing buildings.
In previous years insurance companies have avoided offering sinkhole coverage and other times charged such a high premium it steered away homeowners. The key is by removing coverage for any damages inside the home such as personal property; this has allowed for the cost of sinkhole insurance to be dramatically reduced.
Sinkholes may not be a common claim filed by residents of Florida with homeowner insurance. However, it has happened to people such as last year in Hillsborough County. The damage was a sinkhole 30-feet wide with a depth of 30-feet; that’s about the same size as a three-story building.
Compared to other states, Florida does have an above average occurrence of sinkholes because of its location on the peninsula. The reason for this is because it’s made from porous carbonate rocks that store water and help it move underground.
There is some concern among state regulators; they’re claiming there might not be enough protection in the bill to guarantee consumers are receiving a fair deal. An example of this is the fact with the new bill the surrounding land of a home does not need to be stabilized. There will be no mandates or requirements for this coverage from homeowners or insurance companies.
At the moment there is currently a similar bill that has cleared three committees in the House, it will now be scheduled for a floor debate in that chamber.
As more home insurance Florida reform is undergoing more improvements for coverage will become available and more affordable. Also, in March of 2013, a man was killed while he slept in his very own bedroom in Tampa. If you find you have the means to afford this extra coverage perhaps it may one day become a decision you appreciate. It’s human nature to not believe something uncommon to happen to us until it, unfortunately, does.
Protect yourself if you can afford to do so if not suffer the consequences of a huge loss in the scenario of a sinkhole and no coverage. Insurance companies understand how significant the cost will be that they do not want to even bother with providing affording policies for sinkholes, this should alone get you thinking about adding this additional protection if once again you can afford to do so. It’s going to become much more affordable for everyone very soon and its recommended by us to lock this down especially if you’re a resident in the state of Florida, remember once again the state is known to have above sinkholes than any other state in America.