All About Sinkholes in the United States – Get Covered!
Even though sinkholes are relatively rare in the United States, when they do happen, the damage can be devastating. When it comes to sinkholes in the U.S., they are most common in the following states:
Unfortunately, if you live in an area where sinkholes happen, you will need to add an additional policy or an endorsement to your homeowners policy in order to be fully protected. A standard homeowners policy excludes damage done by “earth movement,” which includes sinkholes. All of this means that if you haven’t purchased additional coverage, you will be on the hook for the cost to repair or replace your home if it is damaged by a sinkhole.
Sinkhole coverage by state
The insurance industry is controlled at the state level so regulations and policies can change by state. While a few insurers make sinkhole coverage standard in their policies in specific states, for the most part, you will have to purchase a second policy or add an endorsement to homeowner policy.
Here is a quick breakdown of the requirements in sinkhole prone states:
Alabama: Insurers must offer sinkhole coverage to their policyholders, but it comes with an additional premium. Get Alabama homeowners insurance quotes!
Florida: Insurers are required to cover “catastrophic ground cover collapse” and offer sinkhole coverage at an additional cost. Get Florida home insurance rate quotes today!
Kentucky: Sinkhole coverage is sold as an endorsement or separate policy by most insurers in the state. Review Kentucky home insurance rates.
Missouri: It is possible to purchase sinkhole coverage as an endorsement, but insurers are not required to sell it. If a homeowner cannot find coverage in the private market it is possible to purchase a stand-alone sinkhole policy via the Missouri FAIR plan. Shop Missouri home insurance quotes and coverage options.
Pennsylvania: Homeowners in Pennsylvania can purchase sinkhole coverage from insurers, but it will involve an additional premium. Buy Pennsylvania home insurance coverage!
Tennessee: Insurers are required to offer sinkhole coverage to all policyholders. While some insurers include it in a standard policy, other insurers may require an additional premium. Tennessee home insurance rate quotes, click to review!
Texas: Sinkhole coverage is usually sold as an endorsement for a homeowner policy. Compare Texas home insurance rate quotes today!
What is “Catastrophic Ground Cover Collapse”
Sinkholes are most common in Florida and while the state requires insurers to cover “catastrophic ground cover collapse.” However, a sinkhole in Florida may not meet the definition of catastrophic ground cover collapse.
The definition of a sinkhole according to Florida: A landform created by subsidence of soil, sediment or rock as underlying strata are dissolved by groundwater. A sinkhole may form by collapse into subterranean voids created by dissolution of limestone or dolostone or by the subsidence as these strata are dissolved.
Catastrophic ground cover collapse is defined in Florida as a “geological activity” that also meets all of the following criteria:
- The abrupt collapse of ground cover
- Depression in the ground cover clearly visible to the naked eye
- Structural damage to the building, including its foundation
- The structure is condemned and ordered to be vacated by a government agency
In Florida, all four of the criteria have to be met for the damage to be covered and this is not always the case. As an example, your home can be severely damaged by a sinkhole but on condemned, if this is the case, coverage can be denied, and you will be on the hook for repairs. Insurers are required to offer sinkhole coverage as an endorsement.
Signs of a sinkhole
Sinkholes tend to develop over time, here are a few signs that you may have a sinkhole developing:
- Cracks start to appear around your doors and windows
- Doors and windows become racked and will not open and close properly
- Deep cracks in your pavement, driveway, and walkways
- Sinkholes can damage buried utility lines so interrupted electricity can indicated sinkhole issues
- Circular depressions in your yard
- Small ponds forms when it rains
- Openings in the ground
- Sudden drop in well levels