Quote:
Originally Posted by msilagy
This is basically a question of risk vs cost. The risk is low for sure. The cost is whatever it is. So one would have to know their risk tolerance and make a decision. An insurance broker explained to me that the catastrophic ins which is mandatory will cover your home if the home is damaged from a sink hole. If a sinkhole opens up away from the home, in the driveway, back yard, etc that's when sinkhole coverage takes over. I'm not sure everyone understands this. I personally do not have sink hole coverage.
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The insurance broker gave you incorrect information. Sinkhole coverage will only cover damage to your house. It won't cover damage to your property, such as your lawn or driveway. The difference between sinkhole insurance and the mandatory catastrophic ground collapse insurance is that the mandatory insurance can only be used if your house is condemned and declared uninhabitable. But, if your house has minor foundation damage, but not condemned, the sinkhole insurance will cover the damage.