March 04, 2015
Missouri Department of Insurance announces sinkhole coverage now available through FAIR Plan
Jefferson City, Mo. - Missourians can now purchase sinkhole coverage through the FAIR Plan. The plan started issuing the standalone Sinkhole Loss policy earlier this year to supplement an applicant's primary coverage.
"The availability of sinkhole coverage through the FAIR Plan is a positive step in the right direction," said Missouri Department of Insurance Director John M. Huff. "I applaud Governor Nixon and the legislature in enacting Senate Bill 691 that gives consumers more insurance coverage options."
Sinkholes are depressions or holes in the ground caused by collapses in the layers below the surface. They can form gradually or suddenly. Most homeowners policies exclude sinkhole coverage and few insurance companies offer the coverage even on an optional basis.
Senate Bill 691 enabled the FAIR Plan to provide Missourians with access to sinkhole insurance coverage. Sinkhole coverage through the FAIR Plan will insure homes and the personal belongings of the homeowner from damage resulting from the abrupt collapse of the ground. The FAIR Plan coverage will not cover damage resulting from settling foundations.
Damage resulting from an earthquake is not covered under most homeowners insurance policies and it is not covered by the FAIR Plan.
The legislature is currently considering legislation that would also allow the FAIR Plan to offer earthquake coverage. Currently, only about 33 percent of residences in Missouri have earthquake coverage.
To obtain information about FAIR Plan coverage, call 800-392-7240 or visit http://missourifairplan.com/. The FAIR Plan was established in 1969 to make property insurance available to applicants who aren't able to secure insurance through the normal insurance market.
About the Missouri Department of Insurance, Financial Institutions & Professional Registration
The Missouri Department of Insurance, Financial Institutions and Professional Registration (DIFP) is responsible for consumer protection through the regulation of financial industries and professionals. The department's seven divisions work to enforce state regulations both efficiently and effectively while encouraging a competitive environment for industries and professions to ensure consumers have access to quality products.