Does Homeowners Insurance Cover Sinkholes? (2024)

FAQs

Does Homeowners Insurance Cover Sinkholes? ›

A standard homeowners insurance policy typically doesn't cover damage caused by a sinkhole or other earth movements, such as a landslide or earthquake.

The insurer may require an inspection of the property before issuance of sinkhole loss coverage.

Property Owner – In most cases, the owner of the property where the sinkhole occurs could be held responsible for any damage because they have the duty of making sure their property is safe.

Sinkhole insurance typically costs between $2,000 and $4,000 each year in Florida, depending on which insurance provider you use.

Homeowners + Renters Insurance

Sinkholes—depressions in the surface of the ground caused by the sudden settlement or collapse of the land—are a natural component of the landscape in many states.

A standard homeowners insurance policy typically doesn't cover damage caused by a sinkhole or other earth movements, such as a landslide or earthquake. It may be possible to purchase a separate policy or add coverage for sinkholes to your current homeowners policy in the form of an endorsem*nt or rider.

Ground Penetrating Radar (GPR) is the best way to detect sinkholes. A GPR survey is a low-risk method to determine the location of sinkholes. This can form part of a risk assessment to check the integrity of the ground or to determine the extent of voids when remediation planning.

A sinkhole is best repaired by excavating to rock and then building an aggregate filter in the hole. Step 1: Excavate the sinkhole down to rock if possible. Step 2: Put a layer of large stones in the hole (cabbage size). Step 3: Put a layer of smaller stones on top (fist size).

The area should be cordoned off immediately. But, if the sinkhole is not impacting a house or other structure, and if it is a manageable size—one to three feet in both diameter and depth—then it can be filled in.

If you're looking for signs of a sinkhole below a building, the University of Florida recommends being aware of structural cracks in walls and floors, cloudy well water and doors and windows that won't close properly.

How long does it take to fix a sinkhole? ›

The length of time it takes to repair a sinkhole will depend on the severity of the sinkhole and the method used for remediation. In some cases, sinkhole remediation can be completed in a matter of days or weeks. However, more severe sinkholes may take several months or even years to repair.

When it comes to homes with unrepaired sinkholes, these should be avoided. These homes are usually priced very low, but an unaddressed sinkhole is not only dangerous but can cause serious structural issues in the home. The longer the sinkhole is left unrepaired, the worse these issues might become.

Key Takeaways: Homeowners insurance typically covers foundation damage when it is caused by a covered peril, such as fire, vandalism, falling objects, or certain natural disasters. Damage from normal wear and tear, insufficient maintenance, or ground settling is usually not covered.

Check your homeowner's insurance policy to see if you might be covered (depending on which state you live in, most insurance policies don't cover damage due to natural sinkholes). If you're concerned about damage to gas, electric, water, or sewer lines, contact the appropriate utility company.

Downhole tool insurance covers the replacement cost of scheduled tools while they are below the rotary table in a pre-approved well. The tools are covered for loss or damage while downhole. Our main loss event occurs when the assembly becomes stuck in the wellbore.

To fill a sinkhole, you'll first need to pour a concrete plug in the bottom of the hole. Then, fill the rest of the sinkhole with clay sand and top it off with a layer of topsoil.

Your insurance company may send you a claim form, known as a “proof of loss” form, to complete. Proof of loss is a formal statement made by a policy owner to an insurer regarding a loss. It is intended to provide the insurer with information to determine the extent of its liability.

If a covered building suffers a sinkhole loss or a catastrophic ground cover collapse, the insured must repair such damage or loss in accordance with the insurer's professional engineer's recommended repairs.

You are required to notify your insurance company or agent promptly after a loss. Insureds who do not sustain significant damage to their property sometimes put off notifying their insurance company until others who did sustain much more significant damage have an opportunity to submit their claim.

Not all homeowners' policies provide coverage for damage to your home resulting from sinkholes. However, Florida law does require insurance companies to cover “catastrophic ground cover collapse.”