If one day you go to sleep with a pond in your back field, and the next morning it’s gone, it was probably the victim of a sinkhole. A sinkhole forms as the result of rock dissolving underground, but they don’t always happen naturally. Texas Brine, a salt mining company in Bayou Corne, LA, claims responsibility for the salt mine that collapsed in 2012 and caused a Louisiana sinkhole. Local residents have been evacuated because the sinkhole continues to expand. In addition to the trees and vegetation it swallowed, it also emits methane gas. So what do you do about insurance in a case this rare?
Normally, sinkhole insurance is based on risk, and while residents of Louisiana aren’t in a high risk zone, it’s important to look at other factors. A mine collapse caused the Bayou Corne sinkhole, but other things can trigger a sinkhole, like a heavy amount of rain after a long dry spell. Rain and drain water that have high acidic levels can deteriorate bed rock, causing a shift in the Earth. Even small tremors can shake loose ground, but the worst part is that a sinkhole will swallow up everything in its path. So it’s important that you’re protected on all fronts. This means having adequate vehicle, homeowner and business insurance.
Some insurance companies in Florida, which is notorious for sinkholes, have tried to only offer 25% in policy coverage in the case of sinkholes, which the courts ruled against. Bayou Corne residents have had claims and policies denied because of an increased risk factor. Even if you take the appropriate measures of insuring your home and personal belongings at replacement cost, it doesn’t help you in a time of need, if the insurance company will only pay you a small percentage of your loss.
If you have questions about your current coverage, consult a local agent. Your agent can look over your policies and find vulnerabilities and opportunities for loss.
There isn’t an average premium for sinkhole coverage because it’s a catastrophic form of insurance. Premiums will be based on your personal risk factors, but it’s possible that adding to your homeowner or vehicle insurance is all the action you need to take. When you work with a Trusted Choice® member, you have someone who is going to work for you. Your agent is interested in finding the best options for you and will be honest about the coverage that you need.
If you’re tired of being put on hold with your current agent, there’s no risk in contacting a local independent agent. Best of all, Trusted Choice member agents operate in a zip code near you, so they already understand your personal risks and circumstances and will help you create a customized Louisiana sinkhole insurance plan. It only takes a few moments to find a Trusted Choice member agent right in your area.