Sinkholes may not happen all that often in South Florida, but there is always a risk, especially during rainy seasons. Despite the risk of significant property damage, few homeowners actually have protection from sinkholes. Instead, homeowners choose to go with the insurance they’re often required to have, such as flood insurance.
So what’s stopping homeowners from investing in sinkhole insurance coverage? The cost may be an issue. As homeowner insurance rates skyrocket because of factors such as assignment of benefits abuse, the cost of sinkhole insurance may not be feasible for a family’s already tight budget. Depending on where a person lives, sinkhole insurance can cost thousands of dollars. On top of that, insurers have been allowed to deny sinkhole coverage or offer it as a separate charge from a basic homeowner’s policy since Florida Governor Rick Scott signed the law into legislation. Because of this law, homeowners may have a tougher time qualifying for a claim, potentially leaving them stranded with unrepairable damage due to a sinkhole.
This information is provided by Miami insurance attorney Alonso, Perez & Santos, LLP. Our areas of practice include bankruptcy, insurance litigation, debt harassment, credit card defense, foreclosure defense, immigration law, condominium law, business start-ups, and more. Call 305-676-7545 to speak with one of our attorneys and receive a free consultation We look forward to working with you.
This information is provided for educational or informational purposes only and should not be construed as legal advice. The information is not provided in the course of an attorney-client relationship and is not intended to substitute for legal advice.