Sinkhole Eligibility Rule Change
May 16, 2013 - ATB #006-13
Generally, a property that experiences a total loss due to sinkhole activity or catastrophic ground cover collapse would be nonrenewed by the insurer and become ineligible for new coverage, even if the property is remediated. When total limits on a policy are paid, either by Citizens or any other property insurer, the homeowner usually is unable to obtain future insurance coverage for the home.
Effective May 15, 2013, these homes now may be eligible for coverage by Citizens if documentation is submitted verifying that the property is fully remediated, based on the recommended repairs of the insurer’s professional engineer at the time of the claim. These risks must be submitted unbound, must meet all other eligibility guidelines and will be reviewed on a case-by-case basis.
These risks may be eligible for coverage, including or excluding sinkhole coverage. Eligibility for sinkhole coverage will be determined based on results of a shared-cost sinkhole inspection. Further updates to sinkhole eligibility rules are being considered, and we will provide information as it becomes available.
For the latest information on unbound submissions, see ATB #010-12: New Proof of Eligibility Requirements for Personal Lines Applications. As a reminder, do not submit premium on an unbound application. If premium is submitted on an unbound application, a binding violation will be issued. For more information on binding violations, see IE #005-13: Personal Residential Policies: Avoiding Binding and Late-Submission Violations.