There are over 4.4 million homeowners in Georgia. Those without home insurance are at risk of paying high bills out of their pockets if their homes get damaged due to insurable perils like theft, vandalism and natural disasters like fire, hail and windstorms. However, with the right home insurance policies, these homeowners would have their structures and personal belongings covered for such damages. Georgia law does not mandate home insurance, but your mortgage lender may require it. Typically, home policies cover:
Additional living expenses
Home insurance policies in Georgia do not cover damages caused by wear and tear, floods, sinkholes, earthquakes, and intentional acts caused by homeowners or their family members. Always review your home insurance policy coverage with your Georgia-licensed property & casualty (P&C) insurance agent at least once a year. This is important because adding a room, new insulation, or remodeling increases the value of your home and may affect your replacement cost. Your insurance agent will help determine if your home has adequate coverage after their evaluation of the existing policy. In addition, they can help you compare homeowners insurance quotes from multiple insurance companies and ensure you settle for an affordable and suitable policy.
In 2021, over 10.7 million people occupied more than 4.4 million housing units in Georgia. In 2020, approximately 64% of the households in the state were owner-occupied, and 36% were renter-occupied.
Several counties in Georgia have most of their housing units owner-occupied. For instance, Forsyth County has up to 84.2% of its housing units owner-occupied. In contrast, the county with the highest number of renters is Chattahoochee County which has 75.7% of its housing units as rental homes. It is vital for owners and renters of these housing units to consider purchasing residential insurance to protect their structures and personal belongings from unforeseen damages or losses. If you own or rent a residential property in Georgia, you need residential property insurance for the following reasons:
Mortgage requirements: Most lenders would require you to provide proof of residential property insurance before funding your mortgage or refinancing it. This is because your lender wants to be sure their financial investment in your property is protected if it is destroyed or damaged by certain perils
Additional living expenses coverage: If you cannot stay in your home due to damages caused by a covered peril, your residential property insurance policy will compensate you for temporary living costs like hotel bills and feeding
Dwelling coverage: Your residential property insurance pays for repairs when covered perils damage your dwellings and attached structures like decks
Other structures coverage: Residential property insurance covers damages to detached structures on your property, like a fence or shed
Personal property coverage: Residential property insurance covers personal belongings like furniture and electronics stolen or damaged by a covered event like vandalism
Personal liability coverage: Your residential property insurance policy will pay for repair costs, legal fees and medical bills when you or your family members are held liable for someone else's property damage or injuries on your residential property
The Georgia Office Of the Commissioner of Insurance and Safety Fire regulates all insurance companies and products, including residential insurance, in the state. There were over 1,700 insurance companies in Georgia in 2020, and over 24 of them are property & casualty (P&C) insurers. Georgia P&C insurers wrote over $26.5 billion in direct premiums in 2021, with over $4 billion being spent annually by Georgia residents on home insurance costs and flood protection for residential dwellings. P&C insurance companies in Georgia sell residential property insurance policies to provide financial protection to residents when they experience losses or damages to their structures and personal belongings. Third-party liability claims are also covered under home coverage.
If a covered peril damages your residential property in Georgia, you must notify your insurance company immediately. All insurance companies in the state have toll-free telephone numbers for claims reporting; some even have online claims reporting options on their websites. There is usually a time limit on filing claims in Georgia, depending on the insurer. Hence, it is better to file your claims as soon as possible. After doing this, you can take steps to prevent further damage to your property. Take pictures or videos of the damage and save all receipts of any amount you spent to prevent further damage. If you need to get temporary accommodation while your house is under repairs due to damages, ensure you keep records of all additional expenses - your home insurance will likely cover them.
When you notify your insurance company about your intention to file a claim, they will provide you with an online claim link and/or send you claims forms within 15 days. Fill out the forms accurately and submit them in a timely manner to avoid delays. Afterward, your insurance company can either call you over the phone or visit your home to discuss the adjuster working with you to handle your claim. The adjuster will visit your home to evaluate the level of damages and determine coverage. After the inspection, your insurance company will give you a copy of the damage estimate. Once you reach an agreement with your insurance company on the terms of settlement, they will process your claims immediately. The process of filing a claim may sometimes be complicated. It is best to contact a Georgia-licensed insurance agent who can help you handle the entire process.
The type of home in which you reside and ownership status (owned or rented) are two basic factors that determine the type of residential insurance you will have to purchase. For instance, you would have to buy condo insurance if you live in a condo. In contrast, if you own a home, you would buy homeowners coverage, but if you own a home and lease it out, you would get landlord insurance - since homeowners insurance policies do not cover rental properties.
The most common types of residential insurance policies in Georgia are:
Liability coverage insurance
Mobile home insurance
Farm and ranch insurance
Generally, the types of residential insurance policies available in Georgia cover liabilities and insureds’ properties:
Property: It covers damages to property caused by perils listed in the policy contract
Liability: It provides financial protection against third parties liability claims
Residential property insurance protects your properties from losses arising from damages caused by covered perils like smoke, hail, wind, fire, theft, lightning, and vandalism. There are several types of residential property insurance in Georgia, depending on home type and ownership status. Each policy type covers your structure, personal belongings, and unattached structures like gates, sheds, and fences. They include:
Property damage to your home and unattached structures like fences and sheds
Additional living expenses if your home becomes uninhabitable and you have to live elsewhere temporarily
Condo insurance: This type of residential property insurance policy covers condominium units. Condo insurance covers the interior structures of your condo units (like flooring, fixtures, and countertops) and your personal belongings if damaged by covered perils like fire, theft, vandalism, smoke, riot or civil commotion and lightning. Additionally, it covers loss of use when your condo unit becomes uninhabitable due to a covered event and you need to get temporary accommodation. Condo insurance does not cover damages caused by floods, earthquakes, and sewage backup
Landlord insurance: With over 3.8 million rental properties in Georgia, landlords need this policy type to protect their rental properties against financial losses. Typical landlord insurance covers property damage and loss of rental income. It does not cover damages to a renter’s personal belongings, equipment breakdown, or damages due to certain natural disasters like floods and earthquakes
Commercial property insurance: This covers apartment complexes (owned or rented) from covered perils like theft, fire, natural disasters, storms and volcanoes, explosions, burst pipes, and vandalism. Commercial property insurance policies do not cover damages caused by floods, earthquakes, and freezing pipes
Personal possessions: Typical renters insurance covers contents of a rented dwelling when stolen or damaged due to covered perils like fire, vandalism, plumbing and electrical malfunctions, volcanoes, and other named hazards. It does not cover damages caused by floods and earthquakes, but you may get separate insurance policies to cover such perils
Additional living expenses: Your renters insurance policy will compensate you if your rented apartment becomes uninhabitable due to a covered peril and you need to move to a temporary housing. It will pay for your hotel bills, restaurant meals, temporary rentals, and other expenses incurred while your dwelling is under repairs
Generally, residential liability insurance in Georgia protects against claims of bodily injury and property damage sustained by third-parties for which you are legally responsible. Such claims can include reimbursements for legal costs, medical expenses, and lost wages. Below explains how property owners and renters benefit from liability coverage in their residential insurance policies:
Homeowners insurance liability coverage: It protects you against liability claims or lawsuits if a third party has an accident in your home that causes bodily injury or damage to their property. It also covers damages caused by your pets but does not cover injuries sustained by the pets themselves; that is covered by pet insurance
Condo insurance liability coverage: It protects you financially in the event of injuries or property damage sustained by others within your condo unit
Landlord insurance liability coverage: It protects landlords against injury or property damage claims on their rental properties made by tenants, visitors, or tradespersons
Renters insurance liability coverage: It covers you when you accidentally cause bodily injuries to others or damage their properties. If the third-party sues you, your renters insurance liability coverage will help you offset the legal fees and the costs of related damages
Every residential property insurance policy sold by Georgia-licensed insurance companies have specific inclusions and exclusions. Hence, you must read your residential property insurance policy documents closely to know what it entails. The table below shows covered and excluded events/perils for residential property insurance in Georgia:
|Residential Property Insurance Inclusions and Exclusions in Georgia|
|Natural disasters including hail, windstorms, tornados, and hurricane||Earthquakes, mudslides, landslides, earth movement, and sinkholes|
|Sudden and accidental water damage||Negligence, wear and tear|
|Vandalism||Mold (except it is caused by a covered peril)|
|Fire and lightning||Flood|
|Theft||Intentional acts caused by your or individuals resident in the home, condo, or rented apartment|
|Explosion||Water damage caused by continuous and repeated seepage|
There are a lot of similarities between homeowners insurance and condo insurance. For instance, both insurance types cover the inside of the home, your personal belongings, and third-party liability claims. The major difference between homeowners and condo insurance policies is how they protect the home's structure. Homeowners insurance covers the exterior and interior parts of dwelling structures. On the other hand, condo insurance only covers the interior part of the condo unit. The condo association’s master policy covers the exterior of a condominium, common-use areas, and its premises. Speak to a licensed insurance agent in Georgia who can assess your needs and recommend the right coverage options for your type of residential home.
The cost of residential property insurance varies by insurance company. Georgia insurance companies use several factors like location, value of the residential property and the rebuild cost, age and condition of the property, and deductibles to determine residential property premiums. The following are ways property owners and renters in Georgia can save on residential property insurance:
Choosing higher deductibles: A deductible is the amount you have to pay out of your pocket towards a covered loss before your insurance kicks in. Choosing a higher deductible helps you save on your residential property insurance costs. Most home insurance companies recommend a deductible of at least $500. However, if you can raise your deductible to about $1,000, you can save up to 25%,
Shopping around: Comparing insurance quotes from multiple home insurance companies will help you settle for an affordable and suitable residential property insurance policy. You could save up to 30% by comparing similar coverages from different insurers,
Qualifying for multi policy discount: Many insurance companies can offer discounts when you bundle other insurance products with your residential insurance policy. For instance, your insurance company can take 5% to 15% off your premiums if you buy homeowners policy and car insurance policy from them,
Making your residential property more disaster resistant: Speak to your insurance agent about the actions you can take to make your residential property more resistant to disasters like windstorms, earthquakes, and water damage. For instance, you can save on your premiums by adding storm shutters to your windows, reinforcing your roof, or using quality roofing materials. If you live in an old home, you can retrofit it so it can withstand earthquakes. Also, you can modernize your heating, plumbing, and electrical systems to mitigate the risk of fire and water damage,
Improving security: Many insurance companies in Georgia offer discounts to individuals who secure their residential properties. For instance, insurers typically offer a 5% or higher discount for insureds with smoke detectors, burglar alarms, or dead-bolt locks. Some insurance companies can even give about 15% to 20% discounts to insureds who install sophisticated sprinkler systems and fire and burglar alarms connected to the police, fire, or other monitoring stations,
Long-term policyholder discounts: Using the same insurance company for many years makes you a loyal client and can earn you discounts. For example, some insurance companies can offer loyal property owners and renters a 5% discount on residential property insurance premiums if they have patronized them for three to five years and a 10% discount for doing business with them for six years or more.
Speak to a Georgia-licensed P&C insurance agent who can guide you on how to save on your insurance premiums. They can also help you compare insurance quotes from several insurance companies and ensure you settle for an affordable and suitable residential property insurance policy. Their services are free and they get paid by your choice insurance company.
Although home insurance is not mandatory by Georgia law, it is important that all homeowners purchase it. How much home insurance coverage you need in Georgia depends on the value of your home. The coverage you purchase must be enough to cover damages to your house, its contents, third-party liability claims, and loss of use. In most cases, your mortgage lender can decide how much home insurance coverage you need. They may want you to get a policy that covers at least the mortgage amount. In addition, your home insurance company may insist that you insure your house up to a certain amount to obtain replacement cost coverage.
As a general rule, always ensure that you have enough coverage to cover the cost of rebuilding your home and replacing your personal belongings in the event of damage or a total loss. Discuss with a Georgia-licensed P&C insurance agent who is familiar with the insurance market and can help you determine how much home insurance coverage you need. They will assess your home insurance needs, run a home insurance quote, and select the most affordable coverage.
Yes, you can over-insure your residential property. However, you will be paying more than you need when all that is required is coverage that is sufficient enough to cover your home’s rebuilding or repair costs in the event of a covered incident. Over-insuring your residential property in Georgia is when your insurance coverage exceeds your property's actual value or replacement cost. For instance, you over-insure your residential property when you get $1,000,000 worth of coverage for a property with a market value of $600,000.
Your insurance company will only pay you for the required cost to put your home back in shape at the current construction costs or purchase a house similar to yours. Note that over-insuring your residential property attracts higher premiums. Speak to a Georgia-licensed P&C insurance agent who can assess your needs and determine the right amount of coverage you need.
Yes, you can under-insure your residential property, but this is not advisable because it attracts higher out-of-pocket payments to replace or repair damages to your home. Underinsurance occurs when your insurance coverage is insufficient to cover the cost of rebuilding your home in the event of a total loss. For example, if the median home value in Georgia is $306,113 and the house is underinsured by 10% and costs $350,000 to rebuild, you will be short by $35,000. To avoid underinsurance, the best thing to do is to consider your home’s rebuild value and not the market, appraised, or assessed value, while selecting coverage amount.
Always review your residential insurance policy at least once a year with your insurance agent to avoid underinsurance. Speak to your Georgia-licensed insurance agent to know how much it would cost to rebuild your property from the ground up to determine how much coverage to purchase.
Yes, most residential property insurance policies in Georgia cover solar panels. Solar panels are largely considered a permanent attachment to residential properties, just like a patio or a security system. So, your residential property insurance will pay to repair or replace solar panels mounted on your rooftop when damaged by covered perils like fire, lightning, windstorm, hail, or vandalism. Also, residential property insurance policies can cover solar panels on top of a detached structure like a shed on the residential property. Residential property insurance policies typically exclude ground-mounted solar panels. You may need additional coverage for solar panels not directly attached to your dwelling unit.
If you lease your solar panel, you may not need to insure them because the leasing company is expected to have them covered under their insurance policy. However, some leasing companies may want you to insure the solar panel using your residential property insurance policy or a separate policy provided by the leasing company.
It is important to note that renters insurance in Georgia only covers renters’ personal properties; it does not cover their rented structures. Hence, it excludes solar panels mounted on the rooftop of the rented apartment (only landlord’s insurance can cover such). Therefore, tenants who have solar panels attached to their apartments would not be covered if their landlords did not install them. Discuss with a licensed P&C insurance agent in your locality before installing solar panels in your rented apartment.
|Policy Type||Covers Solar Panels Mounted on Rooftops|
Yes, solar panels affect home insurance in Georgia. Solar panels are expensive and installing them in your home will increase your residential property coverage limit and make you pay more in insurance premium. Solar panels add value to your home and residential property insurance calculates premiums based on home value. Speak to a licensed homeowners insurance agent in Georgia who can give you specific information on how adding solar panels to your home would affect your insurance premiums.
Solar panels are expensive, and adding them to your home insurance policy will increase your coverage limits, affecting your premiums. Typically, your premium can increase by 20%, which may be up to hundreds or thousands of dollars per year, depending on coverage amount. An average residential 5kW solar system installation in Georgia is between $13,000 and $18,000, while full off-the-grid house solar systems that can support a home with 5 adults can cost upwards of $60,000 - $75,000. The more the system costs, the more coverage you need to add to your home insurance. Discuss your options with your Georgia-licensed insurance agent before adding solar panels to your home insurance policy. Your agent can help you compare quotes from multiple home insurance companies and get you an affordable and suitable policy.
Yes. Most home insurance policies in Georgia cover damages caused by hail. Hence, home insurance will pay to repair or replace hail damages to your roof-mounted solar panels. However, it may not cover hail damage to ground-mounted solar systems, solar panel carports, and batteries because they are not directly attached to your dwelling unit. Speak with your P&C insurance agent to know if your current home insurance policy covers hail damage to your solar panels.
Yes, most residential property insurance policies in Georgia cover damages resulting from sudden and accidental leaks. However, it does not cover leaks due to a lack of maintenance or wear and tear. Note that renters insurance only covers damage caused by sudden leaks to a tenant's property.
Yes, most home insurance policies in Georgia cover sudden and accidental water damage. For instance, if your washing machine supply hose suddenly breaks or a pipe bursts and causes damages, your home insurance policy will pay for such damages. However, home insurance does not cover water damage resulting from continuous and repeated seepage or poor maintenance.
Yes, most home insurance policies in Georgia cover sudden and unexpected water damage due to plumbing malfunctions or broken pipes. However, they do not cover plumbing leaks caused by a slow, constant leak and damage due to flooding.
Yes, most home insurance policies in Georgia cover roof leaks if they occur accidentally and suddenly by a covered peril like hail. However, they do not cover slow leaks or leaks caused by a lack of maintenance. For example, if a hailstorm occurs in your area and the strong and heavy wind blows off your roof shingles, causing rain to leak into your ceiling, your home insurance will cover it. Similarly, if the roof of your rented home leaks due to a covered peril, your landlord insurance will pay for the repairs of the roof but it will not pay for any damages caused to your properties. Your renters insurance will cover such damages. However, if your ceiling leaks from an incorrectly installed shower drain upstairs, your home insurance may not cover it.
Yes, most home insurance policies in Georgia cover temporary housing through the loss of use coverage/Coverage D. For instance, if your house becomes uninhabitable due to a covered peril and you need temporary housing while your home is under repairs, your home policy will cover additional living costs. Such costs include hotel bills and restaurant meals.
|Policy Type||Covers Living Expenses and Temporary Housing?|
|Mobile Home insurance||Yes|
Yes, theft is one of the named perils covered by standard residential property insurance in Georgia. There are several coverages included in your residential property insurance policy that cover theft and theft-related damages. For instance:
Dwelling coverage: This covers theft-related damages to your residential property. For example, if a thief breaks into your home and damages your windows or doors in the process, your homeowners insurance coverage will pay for the repairs
Other structures coverage: This covers theft-related damages to detached structures on your property. For example, if someone breaks into your garage and damages it. Your homeowners or landlord insurance will pay for the repair of the garage
Personal property coverage: This covers stolen personal belongings when they are stolen from your residential property. For instance, if someone breaks into your rented apartment and steals your clothing or furniture, your renters insurance policy will pay the cost of replacing it
Residential insurance policies in Georgia cover theft but provide no assistance following the theft of someone’s identity. However, individuals can purchase identity theft coverage as a rider or endorsement on their residential insurance policies. Identity theft coverage helps reimburse you for money spent on reclaiming your financial identity and repairing your credit reports.
Yes, a residential property insurance policy in Georgia covers molds resulting from covered perils, provided they are sudden or accidental. For example, residential property insurance will provide coverage in the following scenarios:
Your toilet overflows and causes mold
Firefighters extinguishing a fire, resulting in mold
When your washing machine malfunctions and causes mold
A drain hose or pipe attached to a sink or your water heater leaks or ruptures
Residential property insurance does not cover mold growth caused by negligence and flooding. Additionally, mold resulting from the following is not covered:
Water backup caused by clogged sewer lines or broken sump pumps
Poor ventilation resulting in humidity buildup in your basement or bathroom
Neglecting leaks or broken seals in and around fixtures, doors, plumbing, windows, fixtures, and appliances
In Georgia, most home insurance policies cover foundation damages caused by covered perils in such policy documents. However, it does not cover foundation damages caused by floods, earthquakes, sinkholes, and wear and tear. Speak to a Georgia-licensed home insurance agent who can explain the inclusions and exclusions of your home insurance policy.
Yes, home insurance covers certain natural disasters. Georgia is prone to several types of natural disasters, including hurricanes, tornadoes, severe storms, wildfires, and floods. For instance, the Insurance Information Institute (III) recorded that about 2,139 wildfires consumed over 11,108 acres of land in Georgia in 2021.
A typical home insurance policy in Georgia covers damages from natural disasters like fire, lightning, hail, windstorm, tornadoes, and volcanoes. However, damages caused by sinkholes, floods, and earthquakes are excluded. Residents must purchase separate policies like sinkhole, flood, and earthquake insurance to cover such excluded perils. Speak to a Georgia-licensed insurance agent who can help you review your policy and explain what it includes and excludes.
|Natural Disasters||Does my Home Insurance Policy Cover That?|
In 2022, about 4,470 multi-family structures in the Savanna metropolitan area of Georgia were at risk for storm surge and hurricane wind, with an estimated reconstruction cost value of nearly $2.2 billion. Unfortunately, residential property insurance policies do not cover damages caused by floods. Hence, property owners in Georgia, especially those in the Savanna metropolitan area of the state, should consider getting a separate flood insurance policy to cover flood damages.
According to the Federal Emergency Management Agency (FEMA), an inch of floodwater can cause $25,000 worth of damage, making it important to get flood insurance even if you do not reside in floodplains or high-risk zones. Flood insurance policies are usually administered under the National Flood Insurance Program (NFIP). There are 581 communities in Georgia participating in NFIP, with about 82,000 policies in force. Georgians can purchase flood insurance policies from NFIP through licensed P&C insurers, private insurance industry, and “Write Your Own” (WYO) insurance companies. A typical flood insurance policy provides the following coverages:
Coverage A: It covers the building and attached structures
Coverage B: It covers personal belongings and essential basement contents like heaters, air conditioners, and oil tanks
Coverage C: It covers costs incurred to protect the property from flood damage like pollution damage, sandbags, and debris removal
Coverage D: It covers costs required in complying with state and local regulations concerning the repair and reconstruction of flood-damaged properties
Flood insurance does not cover personal property outside the enclosed building, damages resulting from earth movement, personal automobiles, and loss of use. You will need to get separate insurance policies like auto insurance and earthquake insurance to cover such damages. Always review your flood insurance policy with a Georgia-licensed P&C agent to ensure that you understand the coverage and limitations.
Although there is no insurance designed to specifically cover tornadoes in Georgia, 57 tornadoes were reported in the state in 2021. In 2020, Georgia experienced a tornado outbreak in 21 counties, leading to multiple casualties. Most home insurance policies cover damages caused by tornadoes, so you do not need a separate policy. Without the right home insurance coverage in Georgia, you may have to shoulder the entire cost of repairing or rebuilding your home for damages caused by tornadoes.
Your home insurance policy can cover fallen tree damages to your home during a tornado. However, if the tree was already unstable before the tornado felled it but was neglected, your policy may not cover the damage because taking a proactive measure may have prevented the tree from falling. Home insurance will not cover any flooding that occurs due to a tornado. Hence, you might want to get flood insurance if you live in an area prone to tornadoes to protect against floods damages resulting from severe tornadoes.
Most home insurance policies in Georgia provide coverage for damages resulting from hurricanes. However, it does not cover flooding, which is the most common loss associated with hurricanes. In 2020, the damaging wind and storm surge from hurricanes destroyed many homes in Georgia that cost billions of dollars to reconstruct. The table below shows the number of single-story homes in Georgia at risk of storm surges in 2020 at different category levels:
|Single-story Homes in Georgia at Risk of Storm Surges in 2020|
|Category||Numbers of single-story homes at risk of storm surges||Estimated reconstruction cost value|
|Category 1 Hurricane||9,378 single-story homes||Nearly $2.9 billion|
|Category 2 Hurricane||54,470 single-story homes||Over $14.5 billion|
|Category 3 Hurricane||113,068 single-story homes||Nearly $27 billion|
|Category 4 Hurricane||152,882 single-story homes||Over $35 billion|
|Category 5 Hurricane||164,504 single-story homes||Over $37 billion|
Source: Insurance Information Institute (2020)
Your Georgia home insurance policy covers hurricane damages to your home, personal belongings, and unattached structures like sheds, fences, and garages. It covers additional living expenses if you have to live in a place temporarily while your house is under repair. Home insurance also covers food loss due to power outages caused by hurricanes. However, it does not cover your medical bills if you get injured due to a hurricane. Home insurance does not cover water damage and replacement or repair of a car damaged by moving debris or a wind-topped tree. You need to get flood insurance and auto insurance to cover those events.
Although earthquakes are not common in Georgia, you can stay prepared by getting earthquake insurance. The United States Geological Survey (USGS) reported that over 250 earthquakes occurred in Georgia between 2000 and 2022. Most home insurance policies in Georgia do not provide coverage for losses resulting from earthquakes, so separate policies are required to cover such damages. Earthquake insurance covers damages caused by earthquakes to your home, personal belongings, and detached structures like sheds and garages. It covers the cost of stabilizing the land under your home and removing debris. Earthquake insurance also covers additional living expenses if you have to temporarily relocate while your home is being rebuilt or repaired. The policy excludes damage to your vehicles and damages to your lands, like landscaping and sinkholes. Discuss earthquake coverage with a Georgia-licensed insurance agent who can provide the necessary information regarding earthquakes in your locality.
Standard home insurance policies in Georgia do not cover damages resulting from sinkholes. Therefore, you will need sinkhole insurance to cover sinkhole damages. A typical sinkhole insurance policy in Georgia covers the cost of repairing or rebuilding a home damaged by sinkholes. It can also cover your personal belongings and unattached structures. However, sinkhole insurance does not cover damage to cars, water damage, and damages from mine subsidence. Speak with a knowledgeable Georgia-licensed property insurance agent who can provide answers to your sinkhole insurance questions. You can purchase your sinkhole insurance from your homeowners insurance company to benefit from multi policy discounts.