House & Home

Sinkholes & Your Home

Sinkholes do occur in Florida, and homeowners should take steps to protect their home and family from these natural disasters.

Florida Chief Financial Officer Tom Gallagher has advised homeowners to educate themselves on the potential hazards associated with sinkholes. Gallagher has also urged homebuyers to make sure they have the appropriate insurance coverage, especially those who live in the greater Tampa Bay area or West Central Florida.

"Unfortunately, sinkholes do occur in Florida," Gallagher said. "Homeowners should take steps to protect their home and family from these natural disasters."

Gallagher suggests that if a sinkhole has appeared on your property, or a portion of your home has shifted or sunk, you should take these steps immediately:

• If you and your family are in danger, evacuate right away. Secure or remove valuables only if you can do so safely.


• Mark the sinkhole with fencing, rope, or tape to warn others of the danger; you could be held liable if someone is injured in the sinkhole.


• Notify your insurance company or agent.


• Notify your city or county building inspection department.

If you decide to file an insurance claim for sinkhole damage, your insurance company will probably order a geological report that will establish the cause of the damage. If the testing confirms that a sinkhole was the culprit, your insurance company should pay for the testing and repairs, less any applicable deductibles. Homeowners should be aware that other natural phenomena, such as shifting due to a soft clay foundation, can mimic damage caused by sinkholes. If testing proves that the damage was not caused by a sinkhole, you may be held responsible for a portion of the cost.

For potential homebuyers, sinkholes should be considered when purchasing homeowners' insurance.

Make sure this coverage is included in your policy or in a rider attached to the policy. Authorized or licensed insurance companies in Florida are required by law to make this coverage available. Surplus lines carriers aren't required to offer it, but many do.

Here are some additional steps you should take when buying a home:

• Hire a home inspector who can help you find signs of potential sinkhole activity, including cracks in the foundation or exterior walls.


• Consider sinkhole testing. While it can be very expensive, it will definitively determine if a sinkhole is present. However, it can't guarantee that a sinkhole won't appear in the future.

 

An insurance company should not require you to have this testing done prior to granting coverage. Ask your agent for more information regarding sinkhole insurance coverage, or call the Florida Department of Financial Services' toll-free helpline at 1-800-342-2762.

Source: Florida Association of Realtors