What is the difference between a “Sinkhole” and “Catastrophic Ground Cover Collapse?”
This is the question that many insurance companies have left their clients wondering, along with “Why remove my sinkhole coverage???” We here at Horizon want our clients to be informed about these important questions. So here’s the best answer we have:
“Sinkhole Loss Coverage” is the systematic weakening of the earth due to movement and raveling of the underlying sediment. A loss covered under this coverage indicates damage done to the building or foundation cause by this weakening. This coverage covers structural damage to the building, including foundation.
“Catastrophic Ground Cover Collapse Coverage” is defined by the state as:
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
4. The Insured structure being condemned and ordered to be vacated by the government agency authorized by law to issue such and order for that structure
To be eligible for Catastrophic Ground Cover Collapse coverage your home must meet all four of the above criteria.