Short answer: Every Florida property insurer must cover catastrophic ground cover collapse, but that only pays when the ground suddenly collapses, there's a visible depression, the house is structurally damaged, and a government agency condemns it and orders it vacated. Broader sinkhole loss coverage, which can pay for cracking and settling caused by sinkhole activity, is optional: insurers must make it available for an extra premium and may require an inspection first, under section 627.706, Florida Statutes.
Two coverages with very different triggers
Florida sits on limestone, and sinkholes are a real risk in parts of the state, especially the west-central counties. Florida law handles that risk with two separate coverages, and most homeowners don't know which one they have until something cracks.
| Catastrophic ground cover collapse (CGCC) | Sinkhole loss coverage | |
|---|---|---|
| Required? | Yes, on every property policy | No, offered for an extra premium |
| What triggers it | Abrupt collapse, visible depression, structural damage, and condemnation of the home | Structural damage to the building caused by sinkhole activity, as defined in the statute and policy |
| Cracking or settling alone | Not covered | Can be covered if caused by sinkhole activity and the damage meets the policy definition |
| Inspection before you buy | No | The insurer may require one |
| Deductible | Your policy's deductible | Can be 1%, 2%, 5% or 10% of the dwelling limit |
The four-part test for catastrophic ground cover collapse
Section 627.706 defines catastrophic ground cover collapse as geological activity that results in all of the following:
- The abrupt collapse of the ground cover;
- A depression in the ground cover clearly visible to the naked eye;
- Structural damage to the covered building, including the foundation; and
- The insured structure being condemned and ordered vacated by the government agency authorized to do so.
The statute also says plainly that damage consisting merely of settling or cracking of a foundation, structure or building is not a catastrophic ground cover collapse. So CGCC is coverage for the rare dramatic event, not for the slow cracking that is the more common sinkhole complaint. Contents coverage applies when there is a CGCC loss.
What optional sinkhole coverage adds
Sinkhole loss coverage is the broader option. It is tied to structural damage caused by sinkhole activity, and the statute sets rules for how insurers investigate, test and pay for repairs when a claim is made. Key points:
- It costs more. Price depends heavily on location. In some areas it is a modest add-on; in high-activity areas it can be expensive or hard to find.
- An inspection may be required before you can buy it.
- The deductible can be large. Florida allows sinkhole deductibles of 1%, 2%, 5% or 10% of the dwelling limit. On a $400,000 dwelling limit, a 10% deductible is $40,000.
- Claims involve testing. Expect engineering and geological testing before a sinkhole claim is decided.
Not sure whether your policy has sinkhole coverage or only CGCC? Nymble Insurance, a licensed Florida independent agency, does free coverage reviews and compares multiple carriers.
Get a Free Coverage Review →How to tell which one you have
Look at your declarations page and endorsements list. If you see a sinkhole loss endorsement and a separate sinkhole deductible, you have the broader coverage. If you see only catastrophic ground cover collapse, or nothing at all, assume you have only the required protection. When in doubt, ask your agent to confirm in writing.
Who should consider adding sinkhole coverage
- Homes in areas with known sinkhole activity. The Florida Geological Survey publishes educational material on where sinkholes are more common.
- Homes with a history of foundation repair, or prior sinkhole claims nearby.
- Owners who could not absorb a large structural repair out of pocket.
If you are buying, ask the seller about any sinkhole claims or testing reports on the property. A prior claim or report can affect what a new insurer will offer. A pre-purchase home inspection is a good time to look for foundation cracks too.
Warning signs worth reporting
Sinkhole activity can show up as new cracks in walls or floors, doors and windows that suddenly stick, cracks in the driveway or pool deck, or small depressions in the yard. Report damage promptly; Florida's claim notice deadlines still apply.
Bottom line
If you live in a sinkhole-prone part of Florida, do not assume "sinkhole" is covered because your policy mentions ground collapse. Read the endorsement, check the deductible, and price the add-on before you need it. Coverage usually cannot be added once damage has started.
Frequently asked questions
Does Florida homeowners insurance cover sinkholes?
What is catastrophic ground cover collapse?
Are foundation cracks covered under catastrophic ground cover collapse?
How much is a sinkhole deductible in Florida?
Can an insurer inspect my home before selling sinkhole coverage?
Sources
- Section 627.706, Florida Statutes (sinkhole insurance; catastrophic ground cover collapse)
- Florida Geological Survey: Sinkholes
- Florida Department of Financial Services, Division of Consumer Services
General information, not legal advice or a coverage determination. Your policy wording controls. Last reviewed 2026-10-30.