Are Sinkholes Covered by Homeowners Insurance?

When it comes to matters concerning insurance, it’s hard to provide concrete yes or no answers because there are so many different types of coverage out there and every insurance company operates a bit differently. To find out for sure whether or not a sinkhole on your property is covered by your specific homeowner’s insurance policy, it’s best to contact your insurance company directly.

That said, many homeowners in parts of the country where sinkholes are common—such as Florida, Alabama, Kentucky, Georgia, Texas, and Pennsylvania—see enough of a need to purchase sinkhole insurance to make sure they are covered. However, even if you don’t have sinkhole insurance, there are some cases in which a sinkhole could be covered by your homeowner’s insurance policy. Generally, the following four criteria must be met:

There is an abrupt collapse of the ground cover.
There is a depression in the ground that is clearly visible to the naked eye.
There is structural damage to your home, including its foundation. (That is to say, a sinkhole in the middle of your backyard, away from your home, may not be covered.)
The sinkhole has caused the insured structure to be condemned by the appropriate authorities in your community.

If you fail to meet all four of these stipulations, there’s a chance that a sinkhole on your property might not be covered by your normal homeowner’s insurance policy, in which case you may be saddled with the cost of fixing the sinkhole and repairing any damage your home has sustained. As mentioned earlier, it’s always best to consult your insurance company to receive a definitive answer on what is and is not covered under your policy.

If you are in need of sinkhole remediation or foundation repair services, the experts at Engineered Solutions of Georgia are ready to assist. Since 2007, we’ve provided residents of Atlanta and surrounding areas with a wide range of structural and geotechnical repair services and we would love to add you to our long list of satisfied customers.

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“Very happy with the recent work on my crawl space by ESOG. They were reliable and took the time to do the job right and left my basement cleaner than when they arrived. My crawlspace has never been so dry, and my basement has lost the damp musty smell from before. Questions and any issues were answered and resolved immediately. Big shout out to ESOG!”
Brian S.