I feel the Earth Move Under My Feet!
...So goes the famous Carole King lyrics (click here to listen). But how about the real life consequences of the earth moving under your feet, does your homeowner’s policy cover for things like earthquake, sinkholes, and collapses?
National news has been covering the loss to the suburban Detroit neighborhood homes being swallowed up by the earth. This morning I was driving to the office and listening to the morning drive program on Detroit’s WJR radio. The talking heads were bashing the insurance industry because there is no coverage under the home policy for the loss that is happening with this neighborhood being devastated by the sinkhole eating their homes.
How can that be? How can my homeowner’s policy not offer protection for something like this? Well the typical home insurance contract does have coverage limitations and exclusions. There are similar limitations with a business policy. These limitations and exclusions are part of the insurance contract for a number of reasons but there are still ways around the exclusions.