What to Do With a House on a Sinkhole?

Sinkhole Insurance

• In areas prone to sinkholes, owners should ensure that they have adequate coverage from their homeowner's insurance policy. In fact, many policies sell insurance with specific coverage for damages caused by sinkholes. If a sinkhole appears on a property, the homeowner needs to involve the insurance company immediately and schedule a visit from an adjuster. The adjuster is trained in evaluating damage from the sinkhole and devising solutions for the homeowner. Not having adequate coverage, however, is devastating; your house will suffer costly foundation damage, and you even run the risk of the house falling into the sinkhole over time. In this situation, without insurance, you have no financial recourse from damage or loss.

Geological Survey

• Regardless of whether or not you have insurance, it is necessary to have a geological engineering firm evaluate the extent of the damage and the sinkhole itself. An engineering company will perform a test boring of the sinkhole and your soil. After three to five weeks, you will receive a report from the engineering company giving you details about the sinkhole and possible solutions for stopping the destruction and fixing the sinkhole itself. If you have insurance, the insurance company will work with the engineering firm on your behalf. However, it is pertinent to note that no two insurance companies handle these claims the same way. The average cost to hire an engineering company without insurance ranges from $4,000 to $8,000 as of May 2011.

Legal Advice

• According to the Sinkhole.org website, it is wise to hire an attorney when dealing with engineering companies or insurance companies throughout the claims process for sinkhole damage. Having a qualified real estate attorney by your side helps make the claims process easier and streamlines dealings with engineering firms.

Settlment Damage vs. Sinkhole Damage

• In areas where heavy limestone deposits are present, a homeowner might think his home is suffering from sinkhole damage when, in fact, the damage is from other settlement to the property. In these cases, the insurance company might deny a claim, and the homeowner will likely have to remedy settlement damage, cracks and foundation problems on his own out of pocket.