Sinkholes Create a Void in Insurance Coverage for Kansas Residents

September 9, 2009

State insurance officials say residents in a Hutchinson, Kan., neighborhood that will be bought out because of the potential for sinkholes likely won’t see an increase in their insurance premiums.

On the other hand, the homeowners probably won’t be able to get insurance to cover any future damage from sinkholes.

VigIndustries has proposed acquiring 33 properties near the Careyville neighborhood, citing the danger of nearby brine wells developing into sinkholes.

Bob Hanson, a spokesman for the Kansas Insurance Department, says insurance companies will have no legal reason to raise rates for neighborhood residents.

But insurance agents have not been able to find anyone who will offer coverage to protect against sinkhole damage.

Information from: The Hutchinson News,

Topics Kansas

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