It’s probably not something you think could ever happen to you; the ground suddenly opens up and swallows your home and the posessions within. With the recent news about just that happening in the metro Detroit area, you may be thinking about it for the first time. You also may be assuming your HomeOwners insurance policy would automatically cover such a loss.
You’d be wrong.
Sinkholes can be pretty catastrophic to real estate and personal property, and are one of the more difficult events for homeowners to find insurance coverage for. It tends to get excluded in standard home insurance policies, because it’s difficult for insurers to predict its occurrence, and expensive to insure.
Sinkhole damage may not be covered by your homeowner’s insurance policy because the law defines sinkhole damage differently from catastrophic ground cover collapse. However, coverage may be available. What is sinkhole insurance and what does it cover?