Missouri House approves sinkhole insurance bill

JEFFERSON CITY, Mo. -

Missouri property owners may soon have more protection from sinkholes. State Rep. Kevin Elmer, (R) Nixa,  helped secure passage of legislation that would make it easier for Missourians to obtain insurance to cover damage caused by sinkholes. Elmer is the House handler of SB 691, which was approved by the Missouri House of Representatives Thursday by a vote of 142-1.Elmer said the bill is important for Missouri because of the prevalence of sinkholes throughout the state. He noted that it is particularly important for Southwest Missouri where the area has seen several instances of homes being damaged and even destroyed in recent years.

“In Nixa we saw an 80-foot sinkhole swallow a car and part of a house, and the threat of sinkholes remains throughout the area and throughout our state. We want to give homeowners some peace of mind and some financial protection from this natural disaster that is more common than many realize,” said Elmer.

SB 691 would permit insurers to issue policies exclusively for sinkhole loss beginning January 1, 2015. The bill specifies that coverage would be only for homes and that it must not cover driveways or non-habitational detached structures. Coverage of the contents would apply only when the home is covered by sinkhole loss and would not include the loss of land value or the costs associated with filling the sinkhole.

With the positive vote in the House the bill now moves back to the Senate, where it is sponsored by Sen. Jay Wasson, (R) Nixa, for consideration. If approved there it will move to the governor’s desk to be signed into law. KY3