A question mark in lighting

Check out this story by Mike Price of EastIdahoNews.com

The link above is a story about an Idaho family that recently walked into their garage. When they got there they found what the article calls a “sinkhole”. It later goes on to state that there is a room under the garage.

The article states that the mysterious room does not appear on any official records. It indicates the original home was built in the 1950’s with a basement and remodeled in the 1970’s.  The 70’s remodel abandoned the basement.

We can discuss this on the merits of the article moving forward.

The insurance company has done the right thing in sending out an adjuster and an engineer.  The engineer, most likely, will issue a report determining the cause of the failure of the floor.

What caused this loss? It could be categorized as earth movement. However, was there earth under the concrete slab before the incident that would have moved?  The pictures don’t look that way. Is it faulty construction and or manufacturer defect? This is what the engineer and insurance company will have to determine.

If this is earth movement most homeowners policies will not cover the ensuing loss. Same for faulty workmanship or manufacturer defect.

One insurance solution could be Difference In Conditions Insurance. Investopedia defines this as,

“An insurance policy that provides expanded coverage for some perils that are not covered by standard insurance policies. Difference in conditions (DIC) insurance is designed to fill in gaps in insurance coverage, and is most frequently used by larger organizations looking for protection from catastrophic perils.”

Traditionally, Difference In Conditions policies cover earthquake, landslide, and flood.  Most homeowners policies do not cover these perils. They vary by company and coverages, so you should consult a professional insurance agent to make sure you have the proper coverage.

If you have any questions please give us a call at the Lucas Cole Insurance Agency 971.303.8508