Are Sinkholes Covered by My Homeowners Insurance?
Standard homeowners policies cover three primary things. They include structures on the property, your personal possession, and various types of liability. Basic policies do not cover various natural disasters, such as hurricanes, floods, and earthquakes. Other natural occurrences that are not covered include sinkholes and minor movements of the earth that may shift or crack the foundation of a home. There are ways you can solve this problem. One is to purchase a policy that covers sinkhole damage.
What Are Sinkholes?
A sinkhole is a large hole in the ground that is caused by the erosion of rock and soil due to water that flows underground. With time, soil and rock can be displaced as water continues to make its way through cracks that occur naturally in the bedrock. As the holes get bigger with time, the surrounding ground cannot bear the weight of the topsoil, and the entire area caves in. This creates a large sinkhole.
How Likely Is It That I Will Experience Sinkhole Damage?
Unless you live in certain states, your risk of experiencing damage caused by a sinkhole is rather low. According to a study by the United States Geological Survey, residents who live in Tennessee, Pennsylvania, Texas, Missouri, Alabama, Kentucky, and Florida are at a higher risk for sinkholes than in other areas of the country.
Does Car Insurance Cover Sinkholes?
A sinkhole is not considered a “collision” and PL/PD policies will only cover damages to the other driver’s property. If your car is damaged by a sinkhole, the only way to cover the damages is to have comprehensive coverage on your car. A comprehensive policy covers all types of damages and collisions that may be caused by almost any type of natural disaster or event.
Catastrophic Ground Cover Collapse vs. Sinkhole Coverage
In Florida, insurance carriers must offer catastrophic ground cover collapse insurance as part of every basic homeowners policy. This type of coverage and sinkhole coverage are two different things. While it is believed that sinkholes are caused by gradual earth movements, catastrophic ground cover collapse is caused by other types of geographical abnormalities.
Sinkhole coverage must be purchased separately from your basic homeowners coverage. It falls into the same category as floods, earthquakes, and hurricanes. Part of the reason for this is that they are not likely to occur in every state. Catastrophic ground cover collapse may be more common in other areas.
How Much Does It Cost for Sinkhole Insurance?
Sinkhole insurance can be expensive. It may also come with a separate deductible. With that being said, not having this type of insurance if you live in a high-risk area can result in severe financial hardship if you ever have sinkhole damage. Having this coverage in place, especially if you live in one of the states listed previously, will allow you to make the necessary repairs to your home or property.
Jack Stone Insurance Agency Can Help You!
When you are trying to protect your home, you want to do everything you can to ensure it has all of the insurance coverage it needs. This includes events like sinkholes and other natural events. Contact our agents here at Jack Stone Insurance Agency. We can help you figure out what type of coverage you need to take care of all your concerns. Even those that rise above the scope of your basic homeowners coverage.
