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There are two primary types of sinkhole insurance: sinkhole loss coverage and catastrophic ground collapse coverage. Here are the distinctions between them:
Sinkhole Loss Coverage
This insurance endorsement generally covers man-made sinkholes, such as those caused by mining operations. It may or may not include naturally occurring sinkholes.
Catastrophic Ground Collapse Coverage
This coverage protects your home if it is damaged due to a sinkhole causing foundation damage. A local government agency must condemn your home to qualify for this coverage.