Dwelling Policy Practice Test

The endorsement that provides coverage for losses arising from sudden collapse of earth is known as what?

1. Foundation collapse endorsement

2. Sinkhole collapse endorsement

3. Earth settlement endorsement

4. Soil erosion endorsement

The correct answer is: Sinkhole collapse endorsement

The endorsement that specifically addresses coverage for losses resulting from the sudden collapse of earth is known as the sinkhole collapse endorsement. This type of endorsement is designed to cover damage to property that occurs due to sinkholes, which are depressions or holes in the ground caused by the collapse of a surface layer. This endorsement is particularly significant in areas where sinkholes are a common geological hazard. The other options refer to related but distinct issues: the foundation collapse endorsement generally pertains to structural issues with foundations but does not directly cover sinkhole-related incidents. Earth settlement endorsements usually deal with a gradual process of sinking ground rather than sudden collapses, and soil erosion endorsements focus more on the gradual washing away of soil rather than the sudden disappearance of earth due to a sinkhole. Thus, the sinkhole collapse endorsement accurately captures the specific nature of the coverage provided for sudden earth collapses.