There are two main types of sinkhole insurance—sinkhole loss coverage and catastrophic ground collapse coverage. Here are the differences in coverage:
- Sinkhole loss coverage: Sinkhole loss coverage is an insurance endorsement that typically covers man-made sinkholes, including those related to mining operations. It may or may not cover naturally occurring sinkholes.
- Catastrophic ground collapse coverage: Catastrophic ground collapse coverage protects your home if it falls into a sinkhole, and the foundation is damaged beyond repair. To qualify for catastrophic ground collapse coverage, your home must be condemned by a local government agency.