Does Homeowners Insurance Cover Sinkholes?

While sinkholes and other so-called earth movements are uncommon, they have the potential to ruin entire homes, resulting in catastrophic and costly damage. It's critical to understand that regular homeowners insurance does not cover sinkholes. Earthquakes, landslides, and mudflows are also excluded from coverage under any of the six fundamental protections in a normal house insurance policy.

Sinkholes arise when groundwater erodes the structure beneath the earth's surface, eventually collapsing the ground. They can also form due to ground fragments spilling into broken bedrock, causing the surface to dip or collapse completely.

Throughout the United States, encountering a sinkhole on your property is extremely low, especially in comparison to other natural hazards. However, when they do appear, they can pull entire homes into the ground in a matter of seconds. Depending on your insurer, you may be able to add sinkhole coverage as an endorsement to your policy or separately as a stand-alone policy for an additional charge.

Is sinkhole damage covered under homeowners insurance?

No, ordinary homeowner insurance policies do not cover damage caused by ground movements, such as sinkholes, landslides, or earthquakes. Because sinkholes are not considered an insured risk, you must obtain separate sinkhole insurance to properly protect your house.

Your dwelling coverage, which protects the foundation and frame of your home, insures it up to its replacement cost, beginning with the lowest structural layer and ending with the roof. However, because it is not physically integrated into the home, it will not cover the land's surface beneath it.

The same holds for any additional constructions on your property and your personal property. Homeowners insurance does not cover damage to your mailbox, fence, appliances, or other structures or personal goods caused by a sinkhole on or near your property.

If you're concerned about sinkhole activity in your area, you may be able to supplement your insurance with optional sinkhole coverage.

How do I safeguard my home against sinkholes?

Sinkholes are difficult to identify since they develop gradually before suddenly appearing. If you're concerned about the risk of a sinkhole on your property, the best method to safeguard your house from sinkhole damage is to add sinkhole coverage to your policy.

As with the earthquake endorsement, sinkhole coverage can be added to your policy at an additional fee if your insurer offers it or purchases it separately.

In some areas, such as Florida and Tennessee, home insurance companies must offer optional sinkhole coverage. Sinkhole coverage pays for the expense of repairing the foundation of your home and stabilizing the soil beneath it.

To invoke your sinkhole coverage, you must establish that your home has already experienced structural damage due to sinkhole activity or is in imminent danger of sinking into a sinkhole on your land.

While some sinkholes take time to fall, the most deadly ones do so in seconds. As a result, the sooner you report sinkhole activity on your property, the sooner you can avoid further catastrophic damage to your home.