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How do I Choose the Best Sinkhole Insurance?

Luke Arthur
Luke Arthur

Sinkhole insurance is a type of coverage that most people never think about purchasing. Even though it is often overlooked, sinkhole insurance is something many homeowners should consider purchasing. If you are looking for a sinkhole insurance policy, there are a number of factors you will need to take into consideration. You should look at the type of coverage offered, how much of a down payment will be paid, and how the amount of money is determined.

Sinkholes are a problem many homeowners have to deal with every year. A sinkhole is caused by the natural process of rocks under the ground decaying. When this happens, the ground starts to give way until a hole in the surface is eventually created. If your house is sitting on top of this type of hole, it could be significantly damaged. Most traditional homeowner insurance policies do not cover this type of condition.


When you are shopping for sinkhole insurance, one of the first things to look at is the type of coverage offered. Some policies are only going to pay to repair the actual damage to your house. Other policies will pay the extensive costs of underground repairs. Ideally, you would like a policy that is going to cover the cost to repair the sinkhole and the damage to your house foundation, and repair any other home damage.

Another factor you should look at is the amount of money that is going to be distributed initially by the insurance company in the event of a loss. You want to get a large amount of money during the initial distribution. If you need to have underground repairs done, you could potentially have to spend well over $100,000 US Dollars (USD). If the insurance company is only going to pay you $25,000 USD, it may not be enough to get the necessary repairs initiated.

You should also find out how the amount of money you will be paid is going to be determined. In many cases, a geologist or engineer is going to come onto your property and determine the extent of the damage. If the company is going to use another method, you need to understand how it is going to justify giving you the amount of money that will be paid. The sinkhole insurance company should be able to justify the amount of money provided.

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