Sinkholes! Are you covered?
Sinkholes are NOT Covered Under the Home or Dwelling fire policies!
Did you know that Massachusetts has already suffered sinkholes?
Road buckles in Fall River creating huge sinkhole – March 30, 2010
Water main break causes sinkhole in Lowell – October 12, 2011
17 foot deep sinkhole emerges in Holyoke, MA – March 13, 2013
The good news is that you can purchase the sinkhole collapse endorsement for your home and dwelling policies. Don’t forget about earthquake coverage. See the Home and Dwelling fire policy exclusions below.
SECTION I – EXCLUSIONS
A. We do not insure for loss caused directly or indirectly by any of the following. Such loss is excluded
regardless of any other cause or event contributing concurrently or in any sequence to the loss. These
exclusions apply whether or not the loss event results in widespread damage or affects a substantial area.
2.Earth Movement
Earth Movement means:
a. Earthquake, including land shock waves or tremors before, during or after a volcanic eruption;
b. Landslide, mudslide or mudflow;
c. Subsidence or sinkhole; or
d. Any other earth movement including earth sinking, rising or shifting
caused by or resulting from human or animal forces or any act of nature unless direct loss by fire or
explosion ensues and then we will pay only for the ensuing loss.
This Exclusion A.2. does not apply to loss by theft.
The ISO DP-3 states:
GENERAL EXCLUSIONS
A. We do not insure for loss caused directly or indirectly by any of the following. Such loss is excluded
regardless of any other cause or event contributing concurrently or in any sequence to the loss. These
exclusions apply whether or not the loss event results in widespread damage or affects a substantial area.
2. Earth Movement
Earth Movement means:
a. Earthquake, including land shock waves or tremors before, during or after a volcanic eruption;
b. Landslide, mudslide or mudflow;
c. Subsidence or sinkhole; or
d. Any other earth movement including earth sinking, rising or shifting;
caused by or resulting from human or animal forces or any act of nature unless direct loss by fire or
explosion ensues and then we will pay only for the ensuing loss.
Under the HO policy the HO 04 99 Sinkhole Coverage endorsement is necessary to buy back sinkhole collapse.
HO 04 99 Sinkhole Collapse endorsement states:
A. Definitions
The following definition is added:
“Sinkhole collapse“ means actual physical damage:
1. Arising out of; or
2. Caused by;
sudden settlement or collapse of the earth supporting such property. The settlement or collapse must
result from subterranean voids created by the action of water on limestone or similar rock formations.
B. Coverage
We insure for direct physical loss to property covered under Section I caused by “sinkhole collapse.“
C. Exception To The Earth Movement Exclusion
The Earth Movement Exclusion does not apply to “sinkhole collapse.“
Under the DP policy one needs to add DP 04 99 Sinkhole Collapse which reads similarly.
We also must remember that the peril of earthquake is excluded and needs to be bought back. The HO 04 54
Earthquake Endorsement is necessary to add earthquake back to the homeowners policy and DP 04 69
Earthquake is used for the Dwelling Policy