Sinkhole Coverage
Definition:
Insurance that covers damage caused by ground collapse due to sinkholes.
Explanation:
Sinkholes are usually excluded under standard homeowners policies. Special coverage is required in high-risk areas.
Example:
If part of your yard caves in and damages your foundation, sinkhole coverage would pay for repairs.
Why it matters:
This term affects how claims are handled and what payout a homeowner may receive.