The short answer
Usually not. Most homeowners policies exclude earth movement, which typically includes sinkholes, landslides, settling and earthquakes. If the ground under your home gives way, a standard policy alone may not pay.
There are exceptions. Some carriers sell sinkhole coverage as an add-on, and some states have their own rules for it. Review your policy or talk with your agent to see what applies to you.
Why sinkholes are excluded
Sinkholes form when water dissolves rock like limestone below the surface, leaving a hollow space that can collapse. Insurers group this with other ground movement because the risk is concentrated in certain regions and losses can be very large.
That is why coverage, when it exists, is usually a separate endorsement with its own price and terms.
Two kinds of coverage to know
- Sinkhole coverage: an endorsement that can pay for structural damage from sinkhole activity, often with its own deductible
- Catastrophic ground cover collapse: narrower coverage, generally limited to a sudden collapse that makes the home unsafe to live in
- Both are defined by your policy and state rules, so the details differ
What usually isn't covered
Gradual settling, minor foundation cracks and soil shifting are generally excluded, even with sinkhole coverage. Many policies also exclude damage to the land itself, such as filling a hole in the yard, unless the home's structure is affected.
Sinkhole claims often require testing by an engineer or geologist to confirm the cause.
Warning signs
- New cracks in walls, floors or the foundation
- Doors and windows that suddenly stick
- Small depressions or circular patches in the yard
- Trees or fence posts that start to lean
- Water pooling in new places after rain
If you suspect a sinkhole
Safety comes first. If you see sudden collapse or major structural movement, leave the home and call local authorities. Then report it to your carrier promptly, take photos and avoid filling the hole yourself, since that can make it harder to investigate.
Keep records of any inspections and repairs.
Buying in a sinkhole-prone area
Ask the seller about past sinkhole activity or claims, and read the seller's disclosures. A home inspector or engineer can look for signs of ground movement. Get insurance quotes early, before you are under contract, so you know what coverage costs and whether it is available.
