MO SB616

Every insurer authorized to write homeowners' or dwelling-owners' insurance in Missouri must make sinkhole coverage available for an additional premium, effective January 1, 2013.

Sinkhole coverage may be offered as part of the underlying policy or as a separate endorsement or rider and must cover structures and personal property contents to the extent provided in the policy.

Insurers that exclude sinkhole coverage must inform policyholders in bold 14-point type: "YOUR POLICY DOES NOT PROVIDE COVERAGE FOR SINKHOLE LOSSES. YOU MAY PURCHASE ADDITIONAL COVERAGE FOR SINKHOLE LOSSES FOR AN ADDITIONAL PREMIUM."

Sinkhole loss is defined as physical damage caused by sudden settlement or collapse of earth supporting a building resulting from subterranean voids created by water action on limestone or similar rock formations; contents coverage applies only if structural damage occurs.

The insurance director may promulgate rules and regulations to administer and enforce this section under Missouri's rulemaking procedures, with any rules becoming void if the general assembly's rulemaking authority is found unconstitutional.