Did you know that some losses are excluded on a standard homeowner’s insurance policy? Your policy language will include perils that are covered against, as well as losses that are excluded. Sinkholes and Earthquakes are two common exclusions.

What is a sinkhole?

A sinkhole is a hole that suddenly appears due to some form of surface layer collapse.  Most are caused by the chemical dissolution of carbonate rocks and water erosion.

Can I get protection against a sinkhole if it’s excluded?

Most homeowners have no protection for sinkhole loss and don’t even realize it.  However, protection for sinkholes is available and can be added indivdually by endorsement. (Earthquakes are also excluded from a standard policy and require an endorsement. Read more here.)

What is an endorsement?

An endorsement is an addition to a policy which changes the original contract. This can include optional coverage you purchase to increase the protection of your policy either in terms of including perils otherwise not already listed, or scheduling an assigned value to a specific item like a piece of jewelry or music equipment. It can also be used to exclude against certain risks or losses as well.

Do sinkholes happen where I live?

The most common places to experience catastrophic loss from a sinkhole are Florida, Texas, Alabama, Missouri, Kentucky, Tennessee, and Pennsylvania.  Sinkholes are very common and the number is growing each year. You can view insightful information and also maps showing the statistics for Tennessee by checking out this site.

Be sure to know your policy.

The important thing to remember is that in the middle of a catastrophic loss, no one wants to find themselves with an additional financial loss. Read over your policy and as always, give us a call if you’d like to know more about a sinkhole endorsement. We’re here to help you protect the investment you made in purchasing your home.