Learn insure your home from sinkhole damage or destruction.
Sinkhole insurance, or "catastrophic ground cover collapse" as states such as Florida term it, covers the insured in case his home or property is damaged because of a sinkhole. A sinkhole occurs when there is a sudden collapse in the ground. If there is a home, cars or other property sitting on the area that collapses into a sinkhole, it can cause severe structural damage or completely destroy the object. Buying sinkhole insurance is similar to buying other types of insurance policies. According to the USGS, states such as Florida, Texas, Alabama, Missouri, Kentucky, Tennessee and Pennsylvania are the most prone to sinkhole occurrences and damages.
Instructions
1. Contact the insurance agent that manages your policies such as auto insurance, homeowners insurance or renters insurance. Find out if he is offering sinkhole insurance. You can also contact the Office of Insurance Regulation for your state. This office maintains a list of insurance companies that offer sinkhole insurance policies.
2. Identify the coverage terms and conditions, such as the total amount of coverage, deductibles, premiums and what is and what is not covered by the policy. You should obtain this information from at least three insurance providers so you can contrast and compare each of the policies. This type of comparison allows you to choose the policy that best fits your coverage needs, amounts and other terms and conditions.
3. Pay the premium. Once you choose the policy and the insurance provider, submit the application for sinkhole coverage. The application goes to the insurance underwriter, who then approves or denies your coverage. Once the coverage is approved, insurance providers typically require one to two months worth of premium payments up-front to start the policy. After the up-front deposit, you can typically opt to make premium payments monthly, quarterly or annually going forward.
Tags: choose policy, insurance policies, insurance providers, premium payments, sinkhole insurance
