Sinkholes are one of the leading causes of homeowner insurance claims, especially in boggy areas like Louisiana.
Homeowners insurance companies pay over $300 million a year to resolve these claims. That number may be understated, since a comprehensive, national database for sinkhole damage does not exist.
These natural depressions unexpectedly form when underground materials that shore up the surface, such as limestone, dissolve and cause the ground above to collapse. Many sinkholes are small and cause minimal damage. Many others swallow vehicles, destroy homes, and render properties uninhabitable.
Whether you live in a sinkhole-prone area or not, understanding how to protect your home and navigate insurance coverage is essential.
Understanding the role of a New Orleans insurance lawyer is critical as well.
Homeowners who expect the insurance company to take care of everything are often bitterly disappointed. Attorneys fight to hold insurance companies to their commitments.
What Causes Sinkholes?
As mentioned, sinkholes form primarily due to the erosion of soluble rocks beneath the ground, such as limestone, gypsum, or salt beds.
This geological process is known as karst terrain. Over time, underground cavities almost inevitably develop. When they become too large to support the ground above, a sudden collapse can occur.
Natural causes and/or human activities usually cause sinkholes.
Extreme wet weather, either heavy rain or prolonged drought, weakens soluble underground rocks. Seismic activity, no matter how slight, has the same effect. Human activity causes include excessive groundwater pumping, drilling, construction, and mining.
Types of Sinkholes
Sinkholes, small and large, often lead to homeowners’ insurance claims.
A small sinkhole could easily cause a fall, and we mentioned the extreme damage that large sinkholes create. The three major kinds of sinkholes are:
- Solution Sinkholes: These hazards occur gradually over time as rainwater slowly dissolves surface rock. Solution sinkholes are usually soft spots on the ground before they develop into holes.
- Cover-Subsidence Sinkholes: Like solution sinkholes, these hazards also develop slowly over time. Weak sand or soil displaces solid rock and fills in the underground cavity.
- Cover-Collapse Sinkholes: The most dangerous sinkholes appear suddenly and without warning, and often cause significant damage. Because they occur suddenly, cover-collapse sinkholes are the most common damaging sinkholes.
In addition to soft spots on the ground, other warning signs of sinkholes include cracks in walls, floors, driveways, or foundations, slumping or sagging trees and fence posts, sticking doors or windows, and unusual groundwater levels or muddy well water.
If an adjuster finds any of these warning signs during an investigation, the adjuster usually invokes a negligence clause and denies the claim. Homeowners insurance only covers accidents and other events beyond the policyholder’s control.
Protecting Your Home from Sinkhole Damage
Owners cannot possibly entirely prevent sinkholes. However, their policies usually require them to protect their homes from sinkhole damage to the greatest extent possible.
Know the Area
Check geological surveys and local government records to determine if your property is in a high-risk zone. In many states, public records or zoning maps are available that detail sinkhole-prone regions.
Schedule Professional Inspections
Hire a geotechnical engineer to assess your property if you suspect risk. They can detect underground voids using techniques like ground-penetrating radar or electrical resistivity. These inspections at least show the insurance company that the policyholder is aware of the problem.
Maintain Drainage Systems
Poor drainage can accelerate soil erosion. Ensure gutters, downspouts, and storm drains direct water away from the foundation. Avoid over-irrigation and monitor water flow around your property.
Reinforce Foundations
Did you notice that some warning signs of sinkholes mirror signs of foundation issues?
If your home is in a high-risk zone, consider underpinning your foundation with steel piers or other stabilizing structures. This reinforcement helps prevent collapse if a sinkhole develops beneath your property.
Above all else, do not ignore early warning signs. Call a structural engineer or your local government’s geological department if you suspect sinkhole activity.
If a sinkhole appears on your property, evacuate and close off the area. Contact local authorities to take advantage of any available investigative or other assistance. Perhaps most importantly, reach out to your insurance company and a sinkhole engineer. More on that below.
Understanding Sinkhole Insurance Coverage
Negligence clauses often affect sinkhole claims. Additionally, many policies exclude sinkhole damage claims because, in many cases, sinkhole damage is not sudden or unanticipated. However, depending on where you live, you may have options for specialized coverage.
Many companies offer two types of sinkhole-related insurance policies.
Catastrophic Ground Cover Collapse (CGCC)
Catastrophic Ground Cover Collapse (CGCC) is limited and cheaper insurance that only applies if the damage makes the home uninhabitable and the ground surface visibly collapses.
Comprehensive Sinkhole Coverage
Comprehensive Sinkhole Coverage is another option. These policies cover damage caused by sinkholes regardless of the severity, including cosmetic and structural issues.
Other companies offer optional sinkhole endorsements. In many other areas, coverage may be available as an add-on (endorsement) for an additional premium.
Policy add-ons typically cover home repairs due to sinkhole damage, ground stabilization measures, and engineering tests to confirm the presence of a sinkhole. Some policies may also cover additional living expenses if the home is deemed unsafe during repairs.
These policies typically exclude damage from soil movement not classified as sinkhole activity, pre-existing damage, and any damage due to negligence (e.g., poor watchfulness or maintenance).
Always review your policy carefully and speak to your insurance agent about the specific terms.
Filing a Sinkhole Insurance Claim
If you suspect sinkhole damage, the first step toward a settlement is documenting that damage. Take photos and videos of all visible signs of damage. Make notes of when changes were observed and if there were any related events (e.g., heavy rain).
After these documents are assembled, promptly contact the insurance company. Many states impose strict deadlines in these cases.
In response, the insurance company may send a geologist or engineer to determine if a sinkhole is responsible for the claimed damage. You can also hire an independent expert for a second opinion.
If either report confirms sinkhole activity and your policy includes coverage, your insurer should offer a settlement. If the claim is denied, you may contest it with additional evidence or a New Orleans insurance lawyer, preferably one who works in multiple areas.
Work With a Dedicated New Orleans Attorney
Sinkholes often cause catastrophic damage. For a confidential consultation with an experienced insurance lawyer in New Orleans, contact Insurance Claim HQ. The sooner you reach out to us, the sooner we start working for you.
