If you own a home in The Villages, you may wonder what your policy covers if the ground moves. For the statewide rules in full, see our post on sinkhole loss vs. catastrophic ground cover collapse.

The Florida Geological Survey (FGS) says the bedrock under Florida has many cavities, but “very few ever collapse and directly affect roads or dwellings.” The Villages spans parts of Sumter, Lake and Marion counties, about 57 square miles in the community’s own description, so details can differ by county.

We’re an independent insurance agency in Gainesville, in business since 1983, and we work with homeowners in The Villages by phone, email and video. Because we’re an independent agency, a licensed member of our team may be able to compare options from the insurance companies we represent.

Two different coverages

  • Catastrophic ground cover collapse (CGCC). Florida law requires insurers authorized to write property insurance in the state (admitted insurers) to include CGCC coverage. A claim has to meet four tests: an abrupt collapse of the ground cover, a depression clearly visible to the naked eye, structural damage to the covered building including the foundation, and the building condemned and ordered vacated by a government agency with the power to do so. The statute says settling or cracking alone does not qualify.
  • Sinkhole loss. Insurers must make sinkhole loss coverage available “for an appropriate additional premium,” and they may require an inspection before they issue it. The state’s Department of Financial Services (DFS) adds that an insurer may decline to provide it if testing finds sinkhole activity on or within a certain distance of the property.
  • The main building. Both coverages may be limited to the “principal building, as defined in the applicable policy,” so a detached golf cart garage, a pool or a screen enclosure may not be included. Check your own policy wording.

If your policy excludes sinkhole loss, the insurer must give you a notice in bold type of at least 14 points. Excess and surplus lines policies aren’t held to these Chapter 627 rules unless the law specifically says so, which means a surplus lines policy may not include CGCC coverage.

Sinkhole deductibles, in dollars

Florida law lets a residential policy carry a sinkhole deductible of 1%, 2%, 5% or 10% of the dwelling limit. Here is the math on a round $300,000 dwelling limit, as an illustration only, not a quote and not a typical Villages home value.

  • 1% deductible: $3,000
  • 2% deductible: $6,000
  • 5% deductible: $15,000
  • 10% deductible: $30,000

Three counties, three sets of records

When an insurer pays a sinkhole claim, Florida law requires it to file the engineer’s or geologist’s report and certification, with the amount paid and other details, with the county clerk of court. After repairs, the engineer who monitored them files a repair certification, which is also recorded. A recorded report is not a lien, encumbrance or title defect.

Search the records for your county:

Not finding a recorded report doesn’t prove no claim was paid, so ask the seller too.

What state records show for Sumter, Lake and Marion

As of October 30, 2026, FGS subsidence incident report data showed these countywide totals:

  • Sumter County: 45 reported incidents, none marked as a verified sinkhole; most recent event date May 29, 2026.
  • Lake County: 179 reported incidents, 2 marked as verified sinkholes and 7 marked as not a sinkhole; most recent event date September 25, 2026.
  • Marion County: 491 reported incidents, 3 marked as verified sinkholes and 19 marked as not a sinkhole; most recent event date September 30, 2026.

These are countywide totals, not counts for The Villages. FGS says reports are voluntary, most haven’t been field-checked, and they “tend to cluster in populated areas.” FGS notes that other things can mimic a sinkhole, such as compressing clay, buried debris, broken pipes or septic tanks, and poorly compacted fill.

FGS also says there is “no ready reference on sinkhole prediction or risk assessment.” FGS explains that Florida sits on carbonate rock, so sinkholes can form across the state, with the potential higher where limestone is close to the surface. You can view reports near you on the state’s DEP Map Direct sinkhole layer. A nearby report doesn’t mean your lot has a sinkhole, and no nearby report doesn’t mean one can’t form.

Newer homes: what “new” does and doesn’t mean

The Villages describes itself as a community that continues to grow, so many homes here are newer. A newer home can still sit over limestone, and Florida law’s definition of structural damage applies “regardless of the date of its construction.”

FGS says licensed home inspectors and insurance adjusters “are not trained nor qualified” to decide whether a sinkhole is present. Professional geologists and engineers can test, though FGS notes results “are not always conclusive.” DFS says a 4-point inspection normally doesn’t address sinkhole potential; our post on 4-point inspections explains what one does check.

Time away from home and the 2-year clock

The Villages’ FAQ says about three in four residents live there full time, so many others are away part of the year. Under a policy that provides sinkhole coverage, Florida law bars a claim unless notice is given to the insurer under the policy’s terms “within 2 years after the policyholder knew or reasonably should have known about the sinkhole loss” (section 627.706(5)). Other property claims generally must be reported within 1 year after the date of loss (section 627.70132). Check your policy’s notice terms, and report possible damage to your insurer when you notice it.

  • Ask whoever checks on the house to look for new cracks, sticking doors or windows, and depressions in the yard.
  • Take dated photos of walls, floors, the driveway and the lanai each time you leave and return.
  • Read your policy’s conditions for unoccupied or vacant homes, which vary by policy; our Villages home insurance page covers seasonal homes.

If you see a hole, FGS advises marking it, keeping children and pets away, and not putting water into it. If walls are sinking or cracking, stay out, call your insurer, and call 911 if anyone is in danger.

A crack may not be “structural damage”

DFS gives a plain example: “A crack stretching across an interior wall or floor tiles popping up from the home’s foundation may not constitute ‘structural damage’ as defined in statute.” Under section 627.706(2)(k), structural damage means serious floor or foundation movement, load-bearing walls leaning or buckling beyond set limits, a building significantly likely to collapse soon because of ground movement, or substantial structural damage as the Florida Building Code defines it.

Cosmetic cracks can come from settling, poor compaction or a plumbing leak, and FGS notes that “in many cases, insurance may not cover damage from settling due to causes other than sinkholes.” FGS says a licensed professional engineer evaluates structural damage and a professional geologist evaluates sinkhole activity.

How a sinkhole claim works, in brief

  • The insurer must inspect, and if it finds structural damage that may come from sinkhole activity and sinkhole loss is covered, it hires a professional engineer or geologist to test, generally at the insurer’s cost. The law says the insurer’s engineer’s or geologist’s findings “shall be presumed correct.”
  • If the insurer denies without testing and your policy covers sinkhole loss, you can demand testing in writing within 60 days after you receive the denial; you pay 50% of the cost or $2,500, whichever is less, and you’re reimbursed if a sinkhole loss is certified.
  • Repairs follow the insurer’s engineer’s recommendations, and the law sets a 90-day window to sign the stabilization contract and a general 12-month repair period, with exceptions.
  • Section 627.707(7) says an insurer “may not nonrenew any policy of property insurance on the basis of filing of claims for sinkhole loss if the total of such payments does not equal or exceed the policy limits of coverage” for damage to the covered building shown on the declarations page, or if you repaired the home per the engineering recommendations the payment was based on. If the insurer pays those limits, it may nonrenew.

Once a sinkhole report has been issued, either you or the insurer can also request neutral evaluation through DFS. It’s nonbinding, the insurer pays the reasonable costs, and the evaluator, a licensed engineer or professional geologist, comes from DFS’s list of certified neutral evaluators; DFS appoints one if you and the insurer can’t agree. The DFS consumer helpline is 1-877-693-5236.

Buying or selling a resale home

A seller whose own sinkhole claim was paid must tell the buyer before closing that a claim was paid and whether the full payment went to repairs. A claim by an earlier owner may not come up, so search the county records as well.

If the home has a repaired sinkhole, ask for the engineer’s report, the repair certification and the repair contract. FGS says a repair certified by a licensed professional engineer and completed to the insurer’s satisfaction is “likely safe,” while cautioning that it can’t be certain. Line up coverage during the inspection period, since an insurer may inspect before offering sinkhole loss coverage and a past claim or repair can change your options. Florida law says a coverage inquiry is not claim activity unless you file a claim that leads to an investigation.

Questions to ask at renewal

  1. Do I have sinkhole loss coverage, CGCC only, or a surplus lines policy that may include neither?
  2. What is my sinkhole deductible as a percentage and in dollars?
  3. If I’m away for months, who checks the house, and what does my policy say about unoccupied homes?

How we can help

We can read your policy with you and explain what you have, and a licensed member of our team may be able to compare options from the insurance companies we represent. MWI doesn’t inspect homes or test for sinkholes, and we don’t decide what caused damage. Call (352) 371-7977 or request a quote. You can also find more on golf cart and LSV coverage in The Villages.

Frequently asked questions

Does my Villages home policy cover sinkholes?

Policies from admitted insurers must include catastrophic ground cover collapse coverage, which is narrow. Sinkhole loss coverage is optional, costs extra and may require an inspection, and surplus lines policies follow different rules.

Are sinkholes common in The Villages?

FGS data as of October 30, 2026 showed 45 reported incidents in Sumter County, 179 in Lake and 491 in Marion, and those are countywide totals, mostly unverified, not counts for The Villages. FGS says there is no ready reference on sinkhole prediction or risk assessment for a specific property.

I’m away for part of the year. What if I find cracks when I get back?

Check your policy’s notice terms, and report possible damage to your insurer when you notice it. Under a policy that provides sinkhole coverage, Florida law bars a claim unless notice is given within 2 years after you knew or reasonably should have known about the sinkhole loss. Other property claims generally must be reported within 1 year after the date of loss.

Is a crack in my wall or tile a sinkhole claim?

Not necessarily. DFS says a crack across an interior wall or popped floor tiles may not be structural damage as the statute defines it, and a professional engineer or geologist evaluates the cause.

How do I check whether a home I’m buying had a sinkhole claim?

Ask the seller, who must disclose a paid claim of their own before closing, and search the official records of the county clerk in Sumter, Lake or Marion County.

General information, not legal, engineering or coverage advice. Coverage depends on the policy issued, its terms and underwriting. Statute summaries reflect the 2026 Florida Statutes, and sources were checked October 30, 2026. McGriff-Williams Insurance is an independent insurance agency in Gainesville, in business since 1983 and licensed in Florida. We are not affiliated with The Villages, its developer or its community development districts. The Villages is a registered trademark of Holding Company of The Villages, Inc.

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