My annual Homeowner's Insurance renewal is coming up and my agent emailed about new coverage options. There were several but the two I'm interested in are:

Sinkhole Coverage: cost based on home value, $80-$120 / year average.

Service Line Coverage: $10,000 coverage with a $500 deductible for $66 / year.

There has been one minor sinkhole in my subdivision; in a yard, so no home damage and quite a few homes have had water line breaks recently so that seems like a no-brainer. Need to get more details about the sinkhole coverage though...

We are on a shared septic system, so I added coverage for sewerline backup. I sleep better now.

Coverage is not that much. Sinkholes I know are a problem in Florida. I used to live in East Tennessee. Are the sinkholes a result of mining operations??? Where exactly are you located??

quote:

Originally posted by Pyker:
We are on a shared septic system, so I added coverage for sewerline backup. I sleep better now.

As you should. Most people have no clue what a back up endorsement is. If it's a finished basement or main level, you'd better have about $30-50k in coverage.

If it's a risk in your area it's certainly worth it.

What does the service line coverage one protect against? We didn't have that at the company I worked at. I assume it's related to the power lines? Or is it something else?

quote:

Originally posted by ZSMICHAEL:
Coverage is not that much. Sinkholes I know are a problem in Florida. I used to live in East Tennessee. Are the sinkholes a result of mining operations??? Where exactly are you located??

Knoxville - the sinkholes are because of the limestone in the ground. We've had a couple of years in a row of record rains and the ground seems to be opening up as that limestone dissolves. Just a few of the many stories: story 1 story 2 story 3

quote:

Originally posted by ryan81986:
If it's a risk in your area it's certainly worth it.

What does the service line coverage one protect against? We didn't have that at the company I worked at. I assume it's related to the power lines? Or is it something else?

The service line is the water line (maybe sewage as well, waiting on answers to some questions) that the homeowner is responsible for.

quote:

Originally posted by Gear.Up:

quote:

Originally posted by ZSMICHAEL:
Coverage is not that much. Sinkholes I know are a problem in Florida. I used to live in East Tennessee. Are the sinkholes a result of mining operations??? Where exactly are you located??

Knoxville - the sinkholes are because of the limestone in the ground. We've had a couple of years in a row of record rains and the ground seems to be opening up as that limestone dissolves. Just a few of the many stories: story 1 story 2 story 3

quote:

Originally posted by ryan81986:
If it's a risk in your area it's certainly worth it.

What does the service line coverage one protect against? We didn't have that at the company I worked at. I assume it's related to the power lines? Or is it something else?

The service line is the water line (maybe sewage as well, waiting on answers to some questions) that the homeowner is responsible for.

That's what I was thinking but I wasn't sure and I didn't want to assume. I'd say it's 100% worth it unless the home is brand new with a brand new water main.

I lived in Knoxville for four years in the 1970s.Sinkholes not a problem then, but apparently is now. Interesting.

Interesting subject and possibilities of where it can occur. The local news has been running a story of the past week of sink holes in Rapid City and that homeowners have had to relocate with their streets closed down. The source in this case is old abandoned mines that no one susposedly knew about? And that subject will be keeping lawyers, City agencies, state agencies, and the courts busy for a while. I would bet that there are developers and contractors worrying also.

I lived in Knoxville from 196x to 199x. Sinkholes were common. The big one was a great place to play with friends. I tend to buy as much insurance as is prudent.

We have Erie Insurance and purchased the utility protection program. Covers water, gas, electric and sewer for less than one of the coverage programs direct from the utilities.

Pennsylvania offers mine subsidence insurance direct though the state. We purchased about 2/3rd of our homes value based off my insurance agents suggestion. They said its extremely rare to have to completely rebuild, a house and the extra insurance is not needed.