From McGriff-Williams Insurance, an independent agency in Gainesville since 1983. Where confidence grows.

Like the rest of Florida, North Central Florida is underlain by limestone, usually beneath layers of sand and clay that vary in thickness from place to place. Geologists call this kind of landscape karst. The same slow process that feeds springs like Silver Springs and Rainbow Springs, rainwater gradually dissolving rock underground, also creates the voids that can lead to sinkholes, according to the Florida Geological Survey (FGS). The FGS is also clear that most people will never be affected by one.

Still, if the ground under your home does move, your policy’s wording matters. Florida’s insurance law uses two terms that sound alike but work very differently: catastrophic ground cover collapse and sinkhole loss. Here’s what each one means under Florida law, as of the 2026 statutes, and how to tell which coverage you have.

Two Coverages, Two Very Different Thresholds

Catastrophic ground cover collapse

Under section 627.706, Florida law requires admitted insurers (those licensed by the state) to include catastrophic ground cover collapse coverage in homeowners policies. Excess and surplus lines policies don’t have to include it, so check your policy (s. 626.913(4)). The definition is also narrow. All four of these must happen:

1. The ground cover collapses abruptly.
2. There’s a depression in the ground that’s clearly visible to the naked eye.
3. The home has structural damage, including to the foundation.
4. A government agency with the legal power to do so condemns the home and orders it vacated.

The law also says that damage consisting merely of settling or cracking of a foundation or building isn’t a catastrophic ground cover collapse. This coverage is built for the rare, dramatic event.

Sinkhole loss coverage

The same statute requires admitted insurers to make available, for an appropriate additional premium, coverage for sinkhole loss. That means structural damage to the home, including the foundation, caused by sinkhole activity. “Structural damage” has a detailed technical definition in the law.

• The insurer may require an inspection before it adds sinkhole coverage.
• Residential policies may carry a separate sinkhole deductible of 1%, 2%, 5% or 10% of the dwelling limit (s. 627.706(1)(b)). Your policy shows which deductible applies.
• Insurers may limit both coverages to the principal building, as the policy defines it. That means other structures on your property, such as a detached garage, pool or screen enclosure, may not be covered. Check your policy’s wording.

How to Tell Which One You Have

If your policy is from an admitted insurer and excludes sinkhole loss, Florida law requires the insurer to tell you in bold type of at least 14 points, with this notice:

“YOUR POLICY PROVIDES COVERAGE FOR A CATASTROPHIC GROUND COVER COLLAPSE THAT RESULTS IN THE PROPERTY BEING CONDEMNED AND UNINHABITABLE. OTHERWISE, YOUR POLICY DOES NOT PROVIDE COVERAGE FOR SINKHOLE LOSSES. YOU MAY PURCHASE ADDITIONAL COVERAGE FOR SINKHOLE LOSSES FOR AN ADDITIONAL PREMIUM.”

If you see that notice, or don’t see a sinkhole endorsement on your declarations page, a policy from an admitted insurer likely covers only catastrophic ground cover collapse. A surplus lines policy may not include ground cover collapse coverage at all, so check its terms. Not sure? We can read it with you.

Not Every Dip or Crack Is a Sinkhole

The FGS notes that a reported depression often isn’t verified as a true sinkhole. Other causes can look similar, including compressing clay layers, buried debris, broken pipes or septic tanks, and poorly compacted soil, according to its Sinkhole FAQ. The FGS also says home inspectors and insurance adjusters aren’t trained to determine whether a sinkhole is present; licensed professional geologists or engineers are the ones trained to recognize possible sinkhole activity.

That matters for insurance, because many policies don’t cover settling from other causes.

If You Notice Signs of Ground Movement

The FGS suggests a few common-sense steps if a hole appears near your home:

• Stay safe. Mark the area and keep children and pets away. If walls are sinking, sagging or cracking, stay out of the building. If anyone is in danger, call 911.
• Don’t put water in the hole. It can make it bigger.
• Call your insurance company right away, and report the incident to the FGS for its research database.

On the insurance side, for policies from licensed Florida insurers, state law sets out how a sinkhole claim works:

• Report it promptly. A sinkhole claim is barred unless notice is given under the policy’s terms within 2 years after you knew or reasonably should have known about the loss (s. 627.706(5)).
• The insurer inspects first. If it finds structural damage that may be sinkhole-related, and sinkhole loss is covered, it hires a professional engineer or geologist to test and report (s. 627.707).
• You can ask for testing. If your policy includes sinkhole loss coverage and the insurer denies your claim without testing, you can demand testing in writing within 60 days after you receive the denial. You pay half the cost or $2,500, whichever is less, and the insurer reimburses you if its engineer or geologist certifies a sinkhole loss.
• Repairs follow the engineer’s plan. If a sinkhole loss is verified, the insurer pays to stabilize the land and building and repair the foundation as its engineer recommends, subject to your policy’s terms and deductible, and the repairs must follow that plan. Until you sign a repair contract, the insurer may limit payment to the actual cash value of the damage, which doesn’t include work below the foundation such as grouting or underpinning. You need to sign a stabilization and foundation repair contract within 90 days after the insurer confirms coverage and notifies you. That deadline pauses if either side requests neutral evaluation. After that, the insurer pays as the work is done, can’t require you to pay up front, and the repairs generally must be finished within 12 months.
• If you disagree, ask about neutral evaluation. Once a sinkhole report has been issued, either you or the insurer can request neutral evaluation through the Florida Department of Financial Services. A state-certified engineer or geologist reviews the cause of the damage and the repair method and cost. The recommendation isn’t binding, but the insurer must take part if you request it, and the insurer pays the reasonable costs (s. 627.7074).
• Never accept a rebate from a repair contractor. Under the law, it voids your coverage, and you’d have to pay the rebate back to the insurer (s. 627.707(5)(f)).

Buying a Home in Our Area?

If the insurer paid a seller’s sinkhole claim, the seller must tell the buyer before closing that a claim was paid and whether all of the money went to repairs (s. 627.7073(2)(c)). Ask about past claims and repairs early, and talk with us before you close. Paid sinkhole claims are recorded with the county clerk, and insurers may inspect the home and apply their own underwriting guidelines before offering sinkhole loss coverage. A past claim or repair can affect which options are available. Marion County buyers can also see our Marion County sinkhole guide.

Questions to Ask at Your Next Review

• If I add sinkhole coverage, will the insurer require an inspection, and what deductible would apply in dollars?
• Is coverage limited to my main house, and what about my detached garage, pool or other structures?
• Is my policy from a licensed (admitted) insurer or a surplus lines insurer? Florida’s sinkhole and ground cover collapse rules in Chapter 627 generally don’t apply to surplus lines policies unless the law specifically says so, so coverage and the claim process depend on that policy’s own terms.

How McGriff-Williams Can Help

As an independent agency, we can compare options from multiple insurance companies and explain how each handles sinkhole coverage, deductibles and inspections. We can’t tell you whether ground movement is a sinkhole. Under Florida law, that’s determined by testing from a professional engineer or geologist. But we can help you understand your policy before you need it.

Sinkhole Coverage vs Catastrophic Ground Cover Collapse: Should I Get Sinkhole Coverage?

That depends on your home, your policy and how much risk you’re comfortable carrying yourself. Here’s how to think it through.

• Start with what you already have. If your homeowners policy is from an admitted Florida insurer (one licensed by the state), it must already include catastrophic ground cover collapse coverage. That coverage applies only in a narrow case: an abrupt collapse, a visible depression, structural damage and the home condemned and ordered vacated. If your policy is from an excess and surplus lines insurer, it doesn’t have to include catastrophic ground cover collapse coverage at all, so read its terms.
• Sinkhole loss coverage is the optional piece. Admitted insurers must make it available for an additional premium, usually as an endorsement. It can respond to structural damage from sinkhole activity even when the home isn’t condemned. Adding it is not automatic: the insurer applies its own underwriting guidelines and may decline.
• Weigh the deductible. Florida law allows a sinkhole deductible of 1%, 2%, 5% or 10% of the dwelling limit. In our experience, when an insurer allows sinkhole coverage to be added, the deductible is usually 10% of the dwelling limit. Ask us to turn that percentage into a dollar figure for your home.
• Expect underwriting after the policy is in place. The insurer may require an inspection of the property before it adds sinkhole coverage. In most cases the insured pays for that inspection; confirm the arrangement with the insurer. This process typically happens after a policy is bound, or when you already have a policy in force. McGriff-Williams doesn’t do inspections.

Frequently Asked Questions

Does my homeowners policy cover sinkholes?
Policies from admitted Florida insurers (those licensed by the state) must cover catastrophic ground cover collapse, which is narrow: the home has to be condemned and ordered vacated. Excess and surplus lines policies don’t have to include it, so check your policy. Broader sinkhole loss coverage is optional and costs extra.

Can I add sinkhole coverage to my policy?
Admitted insurers must make it available for an additional premium, but they may require an inspection first, and they apply their own underwriting guidelines.

What’s the difference between sinkhole coverage and catastrophic ground cover collapse coverage?

Catastrophic ground cover collapse coverage is built into homeowners policies from admitted Florida insurers, and it applies only when all four parts of the legal test are met, including the home being condemned and ordered vacated. Sinkhole loss coverage is broader: it can cover structural damage to the home from sinkhole activity without a condemnation. It’s optional and costs extra.

Does an excess and surplus lines policy include catastrophic ground cover collapse coverage?

Not necessarily. Florida’s requirement applies to admitted insurers. Excess and surplus lines policies don’t have to include it, so the policy’s own terms control. If you’re not sure which kind of insurer wrote your policy, we can look with you.

Will the insurer inspect my home before adding sinkhole coverage?

It may. Florida law lets the insurer require an inspection before it issues sinkhole loss coverage, and it applies its own underwriting guidelines. In most cases the insured pays for that inspection; confirm the details with the insurer. Adding coverage is not automatic, and the insurer may decline. This process typically happens after a policy is bound, or when you already have a policy in force. We don’t perform inspections, but we can help you understand what the insurer is asking for.

What deductible applies if I add sinkhole coverage?

Florida law allows a sinkhole deductible of 1%, 2%, 5% or 10% of the dwelling limit. In our experience, when an insurer allows sinkhole coverage to be added, the deductible is usually 10% of the dwelling limit. Ask us to show that figure in dollars for your home.

Will asking about sinkhole coverage count against me?

Under Florida law, questions about coverage on a property insurance policy aren’t claim activity unless you file a claim that leads the insurer to investigate.

Talk With Us

Not sure what your policy says about sinkholes? Call us at (352) 371-7977 or request a quote.

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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 as of October 19, 2026, and laws can change. Information current as of November 5, 2026.

This is such a common question we hear from home owners as well as realtors and mortgage lenders when it comes to property in Florida. Although it’s been proven that the majority of flood claims come from low risk flood zones (determined by FEMA), it’s still extremely important to know what level of risk you have for your home to potentially sustain flood damage.

There is a new tool called Flood Factor from First Street Foundation that can help determine the flood risk of a property just by entering the physical address. This tool can tell you approximately what percentage the chances are of your property being damaged by flood and what amount of flooding might occur. There are also projections up to 30 years into the future of how that could change over time. And if youre interested, you can see some further statistics on your zip code, county and state within this tool as well.

This is beneficial in many ways but mostly to bring awareness to home owners of what their own situation is with regards to flooding and also what threats the surrounding areas may face. This also brings to light some gaps in the current FEMA mapping system, especially in smaller communities and rural areas. FEMA has reportedly only mapped one third of the nation’s riverine and coastal floodplains. That’s not nearly enough! But without an appropriate level of funding from Congress, that won’ be completed. This tool also helps with planning, identification of hazard mitigation opportunities, and conducting emergency response action plans.

One thing to note is that this tool is limited on how many details it knows about the property so it will not take into account things like community action, manual drainage systems put in place, etc.
It has been discovered that even just one inch of flooding can cause up to $27,000 of damage to your home so this isn’t something to take lightly. Most standard home owners and renters insurance policies do NOT cover flooding so it’s worth checking this out and seeing if you need a separate flood insurance policy. For more information on flood insurance or to obtain a quote, please contact us at (352) 371-7977 or info@mcgriffwilliams.com.

 

Many people question the Other Structures coverage on their homeowner’s policy and don’t fully understand exactly what it is. It’s also referred to as Coverage B since it’s built into the core coverages on a standard HO-3 policy.

Other Structures applies to anything on the property that is not attached to the home itself. Examples of this would be:

– Fences
– Sheds
– Detached garages
– Gazebos
– Chicken coops
– Pump houses
– Pole barns
– Swimming pools (if not attached to the home)

However, there are often times exclusions for hurricane loss to the following if not attached to the dwelling (unless they are constructed with the same material as the main home):

– Awnings
– Aluminum framed screen enclosures/carports
– Solar panels
– Solar water heaters

A popular other structure in Florida, especially after everyone has stayed home more during the COVID-19 pandemic, is a swimming pool. If the pool is attached to the home (even by a connecting patio or screen enclosure), it would be covered under the Dwelling. Otherwise, it”s under Other Structures.

Typically, Other Structures coverage is 2% of the dwelling amount but it can be increased by endorsement with most companies to be sure you have enough. If you don’t have any detached structures on your property, you may question why you have this coverage at all. It is included as part of the policy without additional premium and cannot be fully excluded.

Be sure to evaluate these things on your property as sometimes they can be overlooked but also the things that commonly sustain damage in storms. If you have questions regarding what should be covered, at what value or under which coverage on your homeowner’s policy, we’d be happy to discuss it with you.

 

1. Trim your trees! Branches hanging over or that could break off easily are a major threat in a storm. Check for any signs of trees being dead or weak as well. Heavy winds or the weight of rain water can make even healthy trees fall or drop limbs so keep all of the area around your house and fencing as clear as possible.

2. Understand your Other Structures coverage. This is the part of your homeowner’s insurance policy that covers things like fences, sheds, detached garages, gazebos, swimming pools (if not attached to the home), etc. Anything that is not attached to the home itself would fall under this category of coverage. However, there are often times exclusions for hurricane loss to awnings, aluminum framed screen enclosures/carports, solar panels, solar water heaters not attached to the dwelling unless it is constructed with the same material as the main home. Typically, Other Structures coverage is 2% of the dwelling amount but it can be increased by endorsement with most companies to be sure you have enough. Evaluate these things on your property as sometimes they can be overlooked but also the things that commonly sustain damage in storms. Other Structures may also be referred to as Coverage B on your policy.

3. What’s your hurricane deductible? There is a difference between your typical All Peril deductible and a hurricane deductible. When a named storm (or spinoff weather) causes damage, the hurricane deductible will apply. Usually, this deductible is 2%. It can go up to 10% and also some companies allow you to have it as low as $500. If your carrier does not offer lower than a 2% hurricane deductible, there are options for a separate hurricane deductible buy-down policy that can get your deductible all the way to $0 if you wish. At the most common 2%, a home insured for $100,000 would have a hurricane deductible of $2,000, which would be their out-of-pocket responsibility before coverage from the policy kicks in.

4. Water vs. Wind: there’s a difference! Typically, homeowner’s insurance policies cover damage caused by water but with very specific limitations. Examples of water damage that are usually covered would be a leaking roof or busted pipe. However, it generally does not cover damage from water that has seeped in or risen up from the ground. This would be covered by a separate flood policy, if there is one. If the home is not in a flood zone that requires flood insurance, the separate flood policy would be elective. Wind damage is typically covered by HO-3 policies for things like a fallen tree, lifted or missing shingles, broken windows from debris, etc. Wind driven rain can get confusing since it’s a mix of wind and water. Usually, damage from the water that comes in with wind driven rain is not covered but damage from the wind is.

5. Be prepared to document and mitigate. If you sustain damage from a storm, it is best to take as many photos or videos as possible to document before making any changes to the condition of your property. Then, it is your responsibility as a homeowner to mitigate your home and belongings from further damage. This could mean boarding up, putting out tarps, removing debris, or whatever needs to be done to prevent more damage from occurring. This is only recommended within what is safe for you and your family. If any temporary repairs need to be done before a claims adjuster can view the damage, all receipts or invoices should be saved as well as photos of before and after repair.

Hurricane season can be a stressful time but being prepared will help alleviate that and will also assist in the claims process, in the event of damage. As always, we are happy to answer any questions during the preparation process and/or get involved if you should need to file a claim. Stay safe!