Missourians can now purchase sinkhole coverage through the FAIR Plan, the Missouri Department of Insurance reported.
The plan started issuing the standalone Sinkhole Loss policy earlier this year to supplement an applicant’s primary coverage.
Sinkholes are depressions or holes in the ground caused by collapses in the layers below the surface. They can form gradually or suddenly. Most homeowners policies exclude sinkhole coverage and few insurance companies offer the coverage even on an optional basis.
Senate Bill 691 enabled the FAIR Plan to provide Missourians with access to sinkhole insurance coverage. Sinkhole coverage through the FAIR Plan will insure homes and the personal belongings of the homeowner from damage resulting from the abrupt collapse of the ground. The FAIR Plan coverage will not cover damage resulting from settling foundations.
Damage resulting from an earthquake is not covered under most homeowners insurance policies and it is not covered by the FAIR Plan.
The legislature is currently considering legislation that would also allow the FAIR Plan to offer earthquake coverage. Currently, only about 33 percent of residences in Missouri have earthquake coverage.
Source: Missouri Department of Insurance
Topics Missouri
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