Sinkholes are very common within Florida’s landscape, where numerous underground caves, springs and drainage systems are carved into the porous limestone beneath the earth’s surface. Each year, the rain associated with hurricane season typically follows drought conditions. As frequent, rapid rainfall occurs, its acidic nature causes the limestone, and the ground above it, to collapse. 

Florida homeowner insurance policies cover only major or total losses from sinkholes that cause a home to be condemned. Coverage for other types of sinkhole damage requires a separate, optional policy with an additional insurance premium, which would cover losses from structural damage caused by sinkholes. 

In 2007, the Florida Legislature required all private property insurers to provide insurance coverage for “catastrophic ground cover collapse,” which requires all of the following:

Previously, most property insurance companies provided comprehensive sinkhole coverage for structural damage, such as cracks in a home’s foundation. Excluding comprehensive sinkhole coverage was a legislative mandate to help consumers lower their property insurance costs. 

Sinkholes can occur anywhere in the state, according to the Florida Department of Environmental Protection. West Central Florida and the Tampa Bay area are especially vulnerable. The Florida Geological Survey has a poster tracking sinkholes that have been reported in the state since 1954. But, there is currently no reliable method to pinpoint where future sinkholes may occur.

Talk to your insurance agent or company to learn what your sinkhole coverage provides and what it does not. Customers of Citizens Property Insurance Corporation, the state-run insurer, should be aware that the company does not provide sinkhole coverage in Pasco or Hernando counties; however, optional coverage is available for an additional premium.

Learn more about sinkholes by reviewing the sinkhole brochure available from the Florida Department of Financial Services.