Protecting yourself against sinkholes

For most homeowners in Florida, only one other word creates as much panic and fear as hurricane, and that’s sinkhole. Maybe because of the 24-hour news cycle, or just that there are more people and developments, sinkholes seem to be occurring more frequently than ever before. Florida’s geology and terrain provides all the proof that most sinkholes are natural occurrences created by acidic groundwater.

According to the Florida Department of Environmental Protection, the entire state of Florida sits on top of several thousand feet of limestone. Limestone is a rock that can form natural void spaces, and since limestone is permeable and porous, it can form natural aquifers which can be tapped for fresh water. Some argue sinkholes are more prevalent because of the water being pulled from the aquifer due to overdevelopment — that is a matter of debate.

• The abrupt collapse of the ground cover.
• A depression in the ground cover that is clearly visible to the naked eye.
• Structural damage to the building, including the foundation.
• The structure being condemned and ordered to be vacated by an authorized government authority.

If a home is damaged by sinkhole activity, but does not meet all four of the above criteria for a catastrophic ground cover collapse, your insurance may not pay for the damages if the home is still livable. This is why homeowners in sinkhole-prone areas should really consider adding a sinkhole rider to their homeowner’s policy.

Before issuing sinkhole coverage, many insurance companies require a sinkhole inspection by an approved inspector to ensure the home is not vulnerable to a sinkhole. This type of inspection costs about $200. If the inspection indicates there is a possibility of sinkhole activity, additional testing by geological professionals may be required. This type of testing can cost thousands of dollars. The real problem is that once a homeowner has been told there is sinkhole activity, or the possibility of it, this information must be disclosed to any potential future buyer if the property is put up for sale.

As you can imagine, these issues between homeowners, insurance companies, and inspectors can get very contentious, which then brings in the lawyers. With the average cost of most sinkhole repairs exceeding $146,000, it is easy to understand that most homeowners do not have the money or ability to withstand this type of economic blow.

Before getting tangled up in a sinkhole problem, it is best to avoid it by doing your due diligence prior to buying a piece of property. First, check to make sure the property is insurable and make sure you have sinkhole coverage. Verify the seller of the property has signed a disclosure form verifying the property has not had any sinkhole activity. Review the area around the property to ensure there is no sinkhole activity in the proximity. You may want to consider having a sinkhole inspection done. If you are buying a home or commercial building, always have a thorough structural inspection by a trained professional to ensure the foundation is stable.

The best advice is, if you don’t know about the sinkhole insurance coverage on your home, call your agent today and be sure you are covered. Just like hurricanes, sinkholes are unpredictable.