Sinkhole Coverage is an optional endorsement that protects a property against physical damage resulting from the sudden collapse or settlement of land. This coverage can be selected via the Coverage tab within the portal.
Available States
This endorsement is only available in certain states and is subject to state-specific guidelines. If the option is not visible on the Coverage tab, it is currently unavailable for that property's location. It is currently available in:
- Kentucky
- Pennsylvania
- Tennessee
Coverage
This endorsement covers direct physical damage to a property caused by:
- The sudden settlement or collapse of the ground beneath a permanent structure.
- Ground movement explicitly triggered by the underground interaction of water and natural rock formations.
Replacement Cost Estimate (RCE) vs. Portal Coverage Settlement
Important Limit Notice: While the Replacement Cost Estimate (RCE) calculates the total estimated cost to rebuild the structure under standard property coverages, the Sinkhole Coverage settlement is governed by the specific coverage choices and limits selected within the portal's Coverage tab. The payout for a sinkhole loss will be determined by the specific limit option set in the portal, rather than automatically defaulting to the full RCE structure limit.
Exclusions
While full exclusionary terms are detailed within state-specific policy forms, this endorsement generally excludes:
- Other Earth Movements: Ground movement caused by earthquakes, landslides, mudslides, or volcanic eruptions that do not stem from the natural underground interaction of water and rock.
- Man-Made Activity: Ground collapse or shifting caused by man-made underground mines, excavation, or construction activity. Mine Subsidence requires a separate endorsement.
- Gradual Settling: Routine settling, cracking, bulging, or shrinking of foundations, walls, or floors that occurs gradually over time rather than from a sudden sinkhole event.
-
Unlisted States: Any properties located outside of the approved, supported states where the endorsement cannot be generated in the portal.
For further assistance, contact us via our webform or Live Chat.