Question: The experts say there’s sinkhole activity on my property but does it necessarily mean the insurance company will cover the damage?
We have recently received a fair amount of inquiries from homeowners who have reported a sinkhole claim, have had the property tested, have been told by the engineering firm that sinkhole activity is present at their property, but they are still waiting for their insurance company to decide if they will be covering the loss.
How to know what insurance will cover
It is often difficult for people to understand why a report discovering sinkhole activity does not automatically qualify them for the sinkhole insurance benefits in their policy. As we have discussed previously, there are many reasons why an insurance company can deny sinkhole coverage such as misrepresentations on applications or prior damages.
If you have had your home tested and instead of issuing payments, your insurance company demands you provide a truckload of documents such as home inspection reports, mortgage information, seller disclosure forms or photographs, be cautious. This most likely means your sinkhole insurance carrier is looking for alternative ways to deny your claim and get out of paying you benefits.
When to be skeptical if your insurance carrier
This is a slippery slope and sometimes a homeowner’s honesty and willingness to cooperate can be used against them. Of course, you do have a duty to cooperate and the insurance company is usually entitled to this information if you have it.
It may be smart to keep in perspective what the insurance company plans to do with this information. If you’re ever unsure about what the information you’re being asked for has to do with your claim, contact an attorney. While you will not be paid unless you cooperate fully, you are not obligated to answer every question, and having an attorney on your side can help keep your claim on track.
Read our tips on filling out a sinkhole claim.
Have a burning question you’d like to ask about sinkholes? Let us know.