Sinkhole Coverage
Plain English
In Florida, home policies must cover "catastrophic ground cover collapse," a sudden collapse so severe the home is condemned. Broader sinkhole damage, like cracking from gradual settling into a sinkhole, is included only if you buy sinkhole coverage, which insurers must offer for an extra premium. Elsewhere, sinkholes are usually excluded as earth movement.
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Definition
Sinkhole coverage pays for structural damage caused by sinkhole activity. In Florida, all property insurers must cover catastrophic ground cover collapse, a narrowly defined event, and must offer broader sinkhole loss coverage for an additional premium. Outside Florida, sinkhole damage is generally excluded as earth movement unless added.
Why It Matters
The difference between the two Florida coverages is large: most sinkhole damage isn't a catastrophic collapse. Knowing which you have matters before buying in a sinkhole-prone area.
Real-World Example
Imagine a Florida home develops cracked walls and a sloping floor from sinkhole activity, but it isn't condemned. Under catastrophic ground cover collapse coverage alone, this generally wouldn't qualify, because that coverage requires an abrupt collapse and a government order to vacate. With sinkhole loss coverage purchased, the structural damage could be covered, subject to the policy's terms.
Common Misconceptions
- Assuming catastrophic ground cover collapse coverage is the same as sinkhole coverage.
- Assuming sinkhole coverage is included outside Florida.
Key Takeaways
- Florida law: "Every insurer authorized to transact property insurance in this state must provide coverage for a catastrophic ground cover collapse" (s. 627.706, Fla. Stat.).
- "The insurer shall make available, for an appropriate additional premium, coverage for sinkhole losses on any structure."
- Catastrophic ground cover collapse requires an abrupt collapse, a visible depression, structural damage, and a governmental order to vacate.
- Outside Florida, earth movement is commonly excluded from home policies.
Frequently Asked Questions
Do I have sinkhole coverage in Florida?
You have catastrophic ground cover collapse coverage. Broader sinkhole coverage only if you bought it.
What's it commonly confused with?
Catastrophic ground cover collapse, a narrower event that Florida requires all policies to cover.
State-specific note: Florida: insurers must cover catastrophic ground cover collapse and must offer sinkhole loss coverage for an additional premium (s. 627.706, Florida Statutes).
Related Terms
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- Homeowners Insurance
Explore the rest of the Homeowners Insurance category.
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The factual claims on this page were checked against these sources. Rules and figures change, so check the source itself if you need to confirm the current version.
- flsenate.govSection 627.706 (2025 Florida Statutes) · The Florida Senate
Educational information, not advice: This page is for general education only, not legal, financial, or insurance advice. Actual coverage, discounts, and requirements depend on your policy’s wording, your insurer, and the laws of your state. Confirm specifics with your own insurer or a licensed agent before making a decision. Insurpedia does not sell insurance and does not recommend specific insurers.