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sinkhole insurance
Occurs notably in Florida, but is found in other limestone areas, covering physical damage to dwellings and personal property caused directly by sinkhole collapse. Sinkhole collapse is the sudden settlement or collapse of earth resulting from subterranean voids created by the action of water on limestone or similar rock formations. All licensed insurers writing property insurance in Florida were required at one time to join the Florida Sinkhole Reinsurance Association, which assumed all sinkhole policies written by members who shared through the association equitably in the total premiums, losses and expenses. After a five-year operation without a loss, the insurers in Florida were required to insure sinkholes under the extended coverage endorsement. The association was then dissolved, although it was reborn shortly thereafter as the Florida Windstorm Association.