PLMIhard
On a Michigan HO-3, how is sinkhole collapse typically addressed relative to the MI Standard Fire Policy at MCL 500.2832?
ASinkhole is automatically included as a named peril in HO-3 contents coverage.
BSinkhole is a mandatory coverage required by MCL 500.2832.
CSinkhole is regulated solely by MBPIA and is unavailable on any voluntary HO-3 form issued in Michigan.
Sinkhole is excluded but may be added by voluntary endorsement above the Standard Fire Policy minimum.
Why this is the answer
The MI Standard Fire Policy at MCL 500.2832 does not mandate sinkhole coverage. HO-3 forms exclude sinkhole collapse from the base contract, but insureds may purchase a voluntary endorsement that adds it above the statutory minimum.
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