A sinkhole is when the ground’s surface layer collapses, creating a bowl-shaped depression. Some sinkholes are only about a few feet long, posing little threat to neighboring structures. Others stretch hundreds of feet and can swallow homes, cars, and trees within seconds.
In insurance terms, a sinkhole is known as a “peril.” Many basic insurance policies do not offer coverage for sinkholes, as they’re considered “acts of God” or, in other words, unforeseeable events. Still, you may have coverage for sinkhole damage through your homeowners or business insurance policy. You could have it as a standalone policy or added to a larger protection plan. In either case, you deserve damages.