Sinkholes have become major insurance concerns in Florida over the last couple of years. Between 2006 and 2010, the Florida Office of Insurance Regulation found that sinkhole claims quadrupled. Sinkholes could cost the state close to $2 billion in 2011, so homeowners will see rate increases and stiffer policy requirements.

New optional sinkhole coverage is now available because of the amount of claims and losses that have beset the area. Sinkholes have been given a more concrete definition by the state and insurers now classify sinkholes as settlement or systematic weakening of the earth resulting from movement or raveling of soils, sediments or rock material into subterranean voids created by the effect of water on limestone or similar rock formation.

Homeowners that want this type of policy will add the optional sinkhole loss endorsement to their base policy. Damage to the foundation and contents are covered in the structure that could be affected by the sinkhole activity. And deductible amounts equal from one to 10 percent of the dwelling limits. It is important to know that damage to your home from other earth movements or settlements will not be covered under this policy.

In Orlando, there are 192 known sinkholes. An experienced insurance agent will research that the coverage you are requesting is what you really need to purchase. With sinkhole insurance, most insurers require an inspection to see the condition of the property, construction type, pool, home interior and surrounding area to prove there is a need for coverage. It is recommended to review insurance policies regularly if a homeowner does improvements or has increased rebuilding costs that could affect this special policy.

Standard homeowners insurance policies do account for ground catastrophe collapses that would make a property condemned and uninhabitable. Florida law mandates that four conditions be met to qualify as a catastrophic ground cover collapse:

• an abrupt collapse of the ground cover

• a depression in the ground cover clearly visible to the naked eye

• structural damage to the building and its foundation

• the structure is condemned and ordered to be vacant by the local government agency responsible for issuing condemnation orders

Studies show that 59 percent of homes are underinsured by an estimated 22 percent. It definitely pays to call a knowledgeable Orlando home insurance agent to protect your biggest asset and investment from disaster.

To learn more call 1.888.525.2210 visit http://www.floridainsurance.com