Are you living in a sinkhole-prone area?
According to the Department of Environmental Protection, sinkholes form when the soil from the surface moves into the open spaces below the surface. These voids are caused by weathering, where water dissolves minerals in rocks below the earth’s surface, causing the loss of support for and eventual collapse of the upper surface.
Sinkholes have the potential to destroy your property and harm your family—especially if you live near or within the radius of one that’s in danger of collapsing. If you don’t have insurance ready to file for claims from such damage, you may find yourself struggling to recover from it, not to mention frustrated. That’s why it’s important to understand the importance of sinkhole damage insurance, the types of insurance policies you can avail to cover the losses from this type of damage, and the help or assistance you need when filing a claim.
What Is Sinkhole Damage Insurance?
Sinkhole damage insurance covers your property or personal belongings damaged or lost to sinkholes. Primarily serving as an addendum to home and business property insurance, it can be provided as a stand-alone property insurance policy or as an endorsement to an existing policy, depending on the rules set down by the state insurance regulators. The policy helps home and business owners in high-risk sinkhole areas cover their losses caused by this type of natural or man-made disaster.
Thousands of sinkhole-related insurance claims are filed each year. Sadly, not all homeowners insurance policies offer protection against the damage done by sinkholes because the insurance providers are not required to endorse or include it in their coverage. But in some states, like Florida and Tennessee, insurers are required to include sinkhole damage coverage in the standard homeowners insurance policy.
How Important Is Sinkhole Damage Insurance?
People living in areas prone to natural phenomena such as hail, flooding, sinkholes, and more should be concerned with protecting their homes from damages due to these disasters. Insurance providers generally offer financial help to either repair the damages or replace the property if the structure or foundation of a home or building is completely destroyed.
A homeowner’s insurance typically doesn’t provide complete coverage for damages brought on by sinkholes, so it is imperative to get stand-alone sinkhole insurance. It may raise your insurance premiums, but you will find it necessary if you live in a sinkhole-prone location.
There are many policyholders having trouble filing or claiming for their losses, and are left unknown what to do next, so they approach public adjusters to help them and ask about insurance claim processes. If you live in Florida areas where sinkholes frequently cause damage, you should have a dedicated insurance policy on your radar. To learn more about the risk in your area or to have a survey of your property, get in touch with your state’s geological survey.
Types Of Sinkhole Insurance Policies
In terms of insurance coverage, sinkholes are generally treated similarly as earthquakes. Sinkhole insurance coverage can vary depending on the insurance provider, the policy, and the state law. Below are the two main types of sinkhole insurance.
Sinkhold Loss Coverage
This basic type of sinkhole insurance is usually regarded as an additional endorsement to a homeowner’s insurance policy. It only covers what is lost in the event of a sinkhole, and the coverage it offers is limited.
First designed to pay for the damages from sinkholes brought on by man-made activities, like mining, any naturally occurring sinkholes may or may not be covered by this policy. It is still advised to get a sinkhole damage insurance policy apart from this one.
Catastrophic Ground Collapse Coverage
In terms of the damages and the requirements for coverage, catastrophic ground collapse coverage is substantially more restrictive. It is only available in states that have a history with sinkholes, like Florida and Tennessee, where residents are legally compelled to have this insurance tied to their properties.
An insured and damaged property must satisfy all these following requirements in order for the damages to be covered by this insurance policy.
- The property must have collapsed suddenly and without warning.
- There must be an obvious depression on the ground.
- The property has structural integrity issues.
- The property must be damaged beyond repair, that the state or the local government condemns it.
Are You Living In A High Risk Area?
The phrase “high-risk area” has been used many times, but what does this actually mean?
Certain soil types and geographical regions are more prone to sinkholes than others. Because of the man-made holes beneath the surface, areas that have experienced extensive mining in the past are more vulnerable to sinkholes. The area might potentially collapse at any time, making these places high-risk due to the weakened subsurface support structure.
If you are living in a location that is confirmed to be at high risk of sinkholes, then you will definitely benefit from applying for a sinkhole insurance plan.
Work With A Public Adjuster For Your Sinkhole Insurance Claims
It’s important to know that you have a legal right to your sinkhole damage claim. If your property has been damaged by a sinkhole, and you are having difficulties claiming what is owed to you because your insurer has rejected your claim, it would be your best bet to talk to an experienced public adjuster. A public adjuster can help you gather the necessary documents, negotiate and make a fair claim settlement from your insurance provider.
SRQ Public Adjusters can help you to speed up the claim process and get you what is rightfully yours. If you are involved in a sinkhole-related property claims dispute, simply contact us and we will be there, ready to help you.
