Homeowners can speak to their home insurers about adding sinkhole coverage to their policies. In Florida and Tennessee, insurers are required to offer sinkhole insurance with a new home policy.
Between 35 and 40 percent of the United States is susceptible to dangerous sinkholes, and they can cause severe property damage. Standard home insurance policies do not cover sinkhole damage.
Policies do cover catastrophic events, which include total destruction of the home by a sinkhole. However, partial damage would not fall under that umbrella. Specific sinkhole coverage is required, and that coverage applies only to the main structure, not decks or garages.
Many people opt out of purchasing sinkhole insurance because premiums are quite high.