Under a Tower Hill Insurance policy, damage must meet a specific structural threshold to qualify as a covered sinkhole loss. Coverage typically applies to the building and its foundation when settlement or cracking is directly attributed to sinkhole activity (subterranean voids (e.g., limestone dissolution) beneath the structure).

Signs of structural damage covered by the policy include:

• Foundation cracks: Specifically those that are wider than 1/4 inch.
• Wall and ceiling shifts: Visible gaps appearing between walls and the ceiling, or exterior walls visibly separating from the foundation.
• Floor irregularities: Uneven or sloping floors.
• Functional issues: Doors or windows that suddenly begin to stick or become difficult to operate.

It is important to note that Tower Hill generally excludes cosmetic or non-structural damage, as well as damage caused by normal wear and tear, erosion from surface water, or gradual settlement unrelated to sinkhole activity. For a claim to be successful, a licensed structural engineer must verify that the damage meets these structural thresholds and is caused by a sinkhole.