Does Insurance Cover Sinkhole Damage?

Does Insurance Cover Sinkhole Damage?It seems like sinkholes are in the news more and more frequently these days, and that may leave you wondering if your home is protected from the damage sinkholes cause. A standard homeowners’ insurance policy does not cover earth movement or sinkholes, but there are some carriers we work with that offer separate optional endorsements that can be added on to your policy.

According to the U.S. Geological Survey, sinkholes are an area that has no natural external surface drainage, so the water drains into the subsurface rock. This water causes the rock to dissolve, and caverns develop over time. If there is not enough support for the land over the cavern, a sudden collapse can occur. This collapse can have a dramatic effect – as seen recently with the National Corvette Museum sinkhole in Bowling Green, Ky. The occurrence of sinkholes is hard to predict, but they most commonly occur in Alabama, Florida, Kentucky, Missouri, Pennsylvania, Tennessee and Texas.

Your best protection against sinkhole damage is to learn about the sinkhole activity in your area, and add the optional sinkhole coverage to your homeowners’ insurance policy, if it’s available. Nature gives us few clues about when a sinkhole forms, but the sudden collapse can be catastrophic. If you’re interested in learning more about sinkhole insurance coverage for your home, the AssuredPartners NL team of individual insurance agents can help. To learn more or contact an agent, visit: AssuredPartners NL Individual Insurance.

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