Holes can be filled with financial risk. What types of holes
cause damage? And will our insurance pay? Here's what we found.
Unfortunately for folks who live in prone areas, sinkholes are not
covered by home insurance in the United States. Most standard home
insurance policies have an exclusion for "earth movement" that
includes earthquakes, land shockwaves, tremors from a volcanic
eruption, landslides and mud flows. House damage caused by the
"earth sinking, rising or shifting" is not covered unless it is
directly caused by a fire or explosion.
See these other
home insurance exclusions
These craterlike holes in the road can be a royal pain in
the asphalt. The damage to your car caused by potholes can be
instantaneous, such as a punctured tire, or cumulative and costly,
such as misalignments to the steering system. However, if you have
collision coverage included in your auto insurance policy, pot hole
damage is covered. Collision coverage, which is optional,
reimburses you for damages to your vehicle caused by pot holes,
according to the Insurance Information Institute. But remember that
you'll have to pay your deductible.
If a meteor or tree punches a hole in your roof, your home
insurance will pay for repairs. But if your roof hole is due to
lack of maintenance, you're on your own.
If your neighbor decides to hold target practice in his backyard
and a stray bullet pops your window or puts a hole into your house,
home insurance would pay for the damage. However, your insurer is
likely to go after your neighbor -- in the form of subrogation
against your neighbor's insurance company - to recoup its expenses.
In another scenario, if your car is the victim of a drive-by
shooting and you have comprehensive coverage, it would pay for any
bullet hole damage. However, coverage likely won't apply if you
were involved in the shooting.
Holes in judgment:
Fortunately for some people, insurance can cover stupidity. Did you
leave your keys in your car and it was stolen? Comprehensive auto
insurance covers the theft.
Some holes in judgment lead to insurance gray areas. Take
the Massachusetts man who tried to melt ice off his
porch with a blowtorch
and ended up setting his home on fire. If his act is deemed
negligent or intentional, his claim would be denied.
If you scored a hole-in-one while playing golf, you'd probably do
some fist pumping. And you'd jump for joy if it wins you a
substantial prize, perhaps $1 million. In many cases, organizers of
"hole-in-one" contests insure against someone actually winning by
buying hole-in-one insurance. It helps cover the cost if the prize
is paid out. Although it's called "hole-in-one" insurance, it can
also be purchased to cover sporting contests, sweepstakes, gaming
jackpots, fishing tournaments and car dealership and radio
While scientists agree that it is
unlikely that Earth will be sucked into a giant
, the even better news is that you'll have plenty of time to buy
home insurance if you see it coming. A standard HO-3 home insurance
policy covers everything except the perils it excludes, and there's
no exclusion for black holes.
Arguably the most dangerous of all holes, because consuming too
many of these empty calories will cause you to pack on the pounds.
And that will force you to pay substantially higher life insurance
rates. In fact, obesity is one of the top 5
most expensive medical conditions for life