Insurer Reverses Decision on Sinkhole Claim Denial

An Allentown family left homeless by sinkholes that opened after a massive water main break last year said they have received good news from the insurance company that previously denied their claim to pay for the damage.

Laura Zimmerman, who owns a brick ranch home on Devonshire Road with her mother, Janet Yocum, said the insurance carrier, Allstate, sent a letter to their attorney indicating it will cover their claim.

David J. Buono, senior adviser to the Pennsylvania Insurance Department commissioner and consumer liaison, confirmed Monday that Allstate agreed to pay the claim. Zimmerman filed a complaint against Allstate with the department.

Joyce Buford, an Allstate spokesperson, said the company resolved the family’s claim ‘after a thorough investigation,’ without elaborating.