Sinkhole Insurance

[ridge]

Checking on home insurance with independent agent. I asked about sinkhole insurance and agent said companies are not offering it on new policies. Has anyone else be told the same?

Also how important do you think it is? Our present policy has sinkhole but deductible is high - 10% of home value.

Thanks for your response.

[retiredguy123]

Which companies? I doubt that is true for all insurance companies. I have sinkhole coverage with Progressive, and I intend to keep it, if I can, regardless of the high deductible.

[Normal]

Which companies? I doubt that is true for all insurance companies. I have sinkhole coverage with Progressive, and I intend to keep it, if I can, regardless of the high deductible.

We do also, one catch, our homeowners went up almost 100% this year. It’s 2500 per year, but I guess that’s standard anymore.

[Rainger99]

We do also, one catch, our homeowners went up almost 100% this year. It’s 2500 per year, but I guess that’s standard anymore.

Do you mean it went up 100% in 2025 or that it went up 100% in 2024?

[Normal]

Do you mean it went up 100% in 2025 or that it went up 100% in 2024?

Our most recent bill for Feb 2025-2026.

[Jack58033]

I think all policies have sinkhole coverage but with one caveat the whole house has to go under. If it cracks in the foundation then it is no longer covered by the insurance companies on new policies.

[JMintzer]

We decided to ditch Progressive before they cancelled our policy.

Our renewal date was mid February, and we went with Cabrillo Costal. Our premiums actually dropped from what we paid the year before with Progressive, and were significantly lower that Progressive's proposed 2/25-2/26 premiums.

And yes, they had an option that included sinkhole insurance (with the same deductible that we had with Progressive...)

[biggamefish1]

All sinkhole policies are grandfathered in, and no new policies are offered in Florida. When and if you cancel your sinkhole policy as I did, that was the end. I am not concerned with the odds of a hole eating my whole home up.

[bmcgowan13]

Checking on home insurance with independent agent. I asked about sinkhole insurance and agent said companies are not offering it on new policies. Has anyone else be told the same?
.

We just purchased sinkhole and CGCC on March 5th of this year from Villages Insurance.

Make sure you are talking about the same coverages. I really went down a rabbit hole on this in February as we prepared for the new home (new build).

There is Sinkhole Coverage and Catastrophic Ground Collapse Coverage (CGCC). We got both. The Sinkhole Coverage was an extra $800 per year. I just looked at it like a burglary alarm for the house. If I pay $800 per year for a home security system I don't feel cheated in a year because nobody broke into my house. It's $800 for peace-of-mind. Expensive for sure.

https://www.myfloridacfo.com/docs-sf/consumer-services-libraries/consumerservices-documents/understanding-coverage/consumer-guides/english---sinkholes-and-catastrophic-ground-cover-collapse-guide.pdf?sfvrsn=a4c83969_4

[jimkerr]

I think all policies have sinkhole coverage but with one caveat the whole house has to go under. If it cracks in the foundation then it is no longer covered by the insurance companies on new policies.

He’s talking about the additional sinkhole coverage you can buy. For example, If a sinkhole opens up in your front yard or driveway.

[Rocksnap]

Our standard policy cover FIXABLE sinkhole damage. I added total loss sinkhole coverage for $240 a year.

[nhkim]

We have Progressive through The Villages Insurance Agency. I spoke to them recently about adding sinkhole coverage. This is what I was told: Our policy covers catastrophic coverage (i.e., a sinkhole opens up on or near our property and our house is uninhabitable). Specific sinkhole coverage is for more gradual things that are caused by a nearby sinkhole (cracks in walls or foundation, doors that now won't close because of shifting of the ground). That coverage can only be added once a year at policy renewal time because a complete home inspection must be done before the coverage is added (with a fee that will be paid by us). As a prior poster said, it's something like $800 a year. We plan to get it when our policy renews.

[ithos]

We have Progressive through The Villages Insurance Agency. I spoke to them recently about adding sinkhole coverage. This is what I was told: Our policy covers catastrophic coverage (i.e., a sinkhole opens up on or near our property and our house is uninhabitable). Specific sinkhole coverage is for more gradual things that are caused by a nearby sinkhole (cracks in walls or foundation, doors that now won't close because of shifting of the ground). That coverage can only be added once a year at policy renewal time because a complete home inspection must be done before the coverage is added (with a fee that will be paid by us). As a prior poster said, it's something like $800 a year. We plan to get it when our policy renews.

If the inspection uses GPR(ground penetrating radar) and discovers subsurface voids then the home values of yours and your neighbors may drop substantially
Under the Florida case of Johnson v. Davis, the seller of residential real property in Florida is required to disclose any material defects in the property which are known to the seller and which are not open and obvious. However, proving such a case is difficult. You should discuss your situation with an experienced real estate lawyer in your area to determine whether your builder violated the Johnson v. Davis standard and what options are open to you.
Just a moment... (https://www.avvo.com/legal-answers/do-home-builders-have-to-disclose-known-sink-hole--380787.html)

Best to shop around for an insurer who offers sinkhole loss(edit) coverage without inspection.

Catastrophic Ground Cover Collapse vs Sinkhole Coverage - Explained (https://www.harrylevineinsurance.com/sinkhole-coverage-vs-catastrophic-ground-collapse/#:~:text=Does%20My%20Homeowner's%20Insurance%20Pol icy,(more%20on%20this%20later)).

[Laurawilcox]

Hello Rocksnap, who do you get your insurance through?

[ithos]

I don't know why Progressive requires an inspection since the odds are relatively low in The Villages. There may be factors such as ponds or lakes that make a difference. I had Progressive until they dropped everyone. At the time they did not require an inspection.

There are plenty of threads on this subject on TOV if you care to read.

[retiredguy123]

He’s talking about the additional sinkhole coverage you can buy. For example, If a sinkhole opens up in your front yard or driveway.
That is a common myth. Sinkhole insurance does NOT cover a sinkhole in the driveway or in the yard, or to other property that does not affect the house. It only covers damage to your house. All policies in Florida cover catastrophic ground collapse damage to your house if the house is deemed uninhabitable by the county or state. If you have damage to your house, but the house is not deemed uninhabitable, then an optional sinkhole coverage may cover the damage to your house.

[jsa]

Checking on home insurance with independent agent. I asked about sinkhole insurance and agent said companies are not offering it on new policies. Has anyone else be told the same?

Also how important do you think it is? Our present policy has sinkhole but deductible is high - 10% of home value.

Thanks for your response.

We are moving into our new home in early April and I have quotes from both State Farm and AAA that include sinkhole insurance.

[Chamo]

Shop around the village’s insurance is NOT a good thing. Many issues with there services.

[bowlingal]

If a sinkhole touches your house, the damage is covered under your homeowners policy. A rider for sinkhole coverage is needed if the sinkhole DOES NOT touch the house, but appears on your property

[retiredguy123]

If a sinkhole touches your house, the damage is covered under your homeowners policy. A rider for sinkhole coverage is needed if the sinkhole DOES NOT touch the house, but appears on your property
Not true. The optional sinkhole insurance only covers damage to the house. I would suggest that you read the sinkhole insurance rider very carefully. I have. The only difference between the optional sinkhole coverage and the mandatory catastrophic ground collapse coverage is that the house must be deemed uninhabitable by the county or state to get coverage under the mandatory insurance. Verbal information from an insurance salesperson is often not correct.

[Mrmean58]

Do you mean it went up 100% in 2025 or that it went up 100% in 2024?

They ment since their last renewal. The year number is irrelevant.

[retiredguy123]

I think all policies have sinkhole coverage but with one caveat the whole house has to go under. If it cracks in the foundation then it is no longer covered by the insurance companies on new policies.
All insurance policies in Florida must cover catastrophic ground collapse. If the house is deemed uninhabitable by the county or state, then your homeowner's insurance will cover the damage. This is a mandatory coverage for all Florida homeowner policies.

[ridge]

I think all policies have sinkhole coverage but with one caveat the whole house has to go under. If it cracks in the foundation then it is no longer covered by the insurance companies on new policies.

No, all insurance doesn't have sinkhole. It's a separate rider. All policies have catrostaphic ground collapse, which is different from sinkhole.

[dougawhite]

Our standard policy cover FIXABLE sinkhole damage. I added total loss sinkhole coverage for $240 a year.

You've got it backwards.

[jabacon6669]

Checking on home insurance with independent agent. I asked about sinkhole insurance and agent said companies are not offering it on new policies. Has anyone else be told the same?

Also how important do you think it is? Our present policy has sinkhole but deductible is high - 10% of home value.

Thanks for your response.
Everyone should understand the difference between SH (sink hole) and CLC (Catastrophic land collapse) Everyones policy has CLC. This is when the land collapses causing damage to the property or house. SH coverage has the same thing happen, and as someone mentioned it swallows your home. Not True, it also might only cause some property or home damage. SH coverage is optional. Some are saying on this blog it is no longer offered by any company any more. I don't know if that is true. Here's the difference, it's in the cause of the collapse. In both cases, the State, in this case FL sends out an inspection team, and if they determine that the cause of the land collapse is the result of a limestone formation under the earths surface then its a SH. I assume they have to do some boring, if you don't have SH coverage, you getting nothing from your insurance company, and you can't argue or negotiate, the state makes the final determination. If it's not determined to be limestone then you will get coverage under the CLC clause. About two years ago I had purchased insurance through TV insurance agency, they wrote my policy with one of the companies mentioned in this forum. It had a 10% property value deduction, which would have amount to 30,000 to 40,000k deductible. And it went up drastically the second year. Too, about $2700/ yr. I switched to State Farm they included SH, and the deducible was $1000 on all line items that had deductibles. It was about $2200/yr last year and only went up a few dollars this year. Kelly Mast is the State Farm agency on Warm Springs ave. Check it out, I'd be interested if they still offer SH coverage. Hope this helps, Regards.

[Runway48]

If the inspection uses GPR(ground penetrating radar) and discovers subsurface voids then the home values of yours and your neighbors may drop substantially
Under the Florida case of Johnson v. Davis, the seller of residential real property in Florida is required to disclose any material defects in the property which are known to the seller and which are not open and obvious. However, proving such a case is difficult. You should discuss your situation with an experienced real estate lawyer in your area to determine whether your builder violated the Johnson v. Davis standard and what options are open to you.
Just a moment... (https://www.avvo.com/legal-answers/do-home-builders-have-to-disclose-known-sink-hole--380787.html)

Best to shop around for an insurer who offers sinkhole loss(edit) coverage without inspection.

Catastrophic Ground Cover Collapse vs Sinkhole Coverage - Explained (https://www.harrylevineinsurance.com/sinkhole-coverage-vs-catastrophic-ground-collapse/#:~:text=Does%20My%20Homeowner's%20Insurance%20Pol icy,(more%20on%20this%20later)).

Do you know if GPR is, or can be, included in a pre-purchase home inspection? Thanks

[retiredguy123]

Everyone should understand the difference between SH (sink hole) and CLC (Catastrophic land collapse) Everyones policy has CLC. This is when the land collapses causing damage to the property or house. SH coverage has the same thing happen, and as someone mentioned it swallows your home. Not True, it also might only cause some property or home damage. SH coverage is optional. Some are saying on this blog it is no longer offered by any company any more. I don't know if that is true. Here's the difference, it's in the cause of the collapse. In both cases, the State, in this case FL sends out an inspection team, and if they determine that the cause of the land collapse is the result of a limestone formation under the earths surface then its a SH. I assume they have to do some boring, if you don't have SH coverage, you getting nothing from your insurance company, and you can't argue or negotiate, the state makes the final determination. If it's not determined to be limestone then you will get coverage under the CLC clause. About two years ago I had purchased insurance through TV insurance agency, they wrote my policy with one of the companies mentioned in this forum. It had a 10% property value deduction, which would have amount to 30,000 to 40,000k deductible. And it went up drastically the second year. Too, about $2700/ yr. I switched to State Farm they included SH, and the deducible was $1000 on all line items that had deductibles. It was about $2200/yr last year and only went up a few dollars this year. Kelly Mast is the State Farm agency on Warm Springs ave. Check it out, I'd be interested if they still offer SH coverage. Hope this helps, Regards.
Your information does not seem to track with this explanation from Harry Levine Insurance. Also, both sinkhole insurance and catastrophic ground collapse insurance only cover the house, not the surrounding property:

"Catastrophic Ground Cover Collapse
Catastrophic ground cover collapse coverage is included under your existing home insurance policy.
However, your claim must meet four requirements before your insurance company will reimburse you for the loss:

1. The abrupt collapse of the ground cover;
2. A depression in the ground cover clearly visible to the naked eye;
3. ,Structural damage to the insured building, including the foundation; and
4. The insured structure being condemned and ordered to be vacated by the governmental agency authorized by law to issue such an order for that structure.

Again, all four of these conditions must be met for it to be considered catastrophic ground collapse. Incidents that meet only some of these conditions would require a sinkhole insurance policy."

[retiredguy123]

A lot of people who buy insurance products rely way too much on verbal information that they receive from a "so-called" insurance agent. They are not legal agents of the company. Anything that these salespeople tell you needs to be in writing in the policy document or in the rider. Often, the information these people provide is false and/or misleading. I found this to be especially true regarding sinkhole insurance.

[jrref]

Your information does not seem to track with this explanation from Harry Levine Insurance. Also, both sinkhole insurance and catastrophic ground collapse insurance only cover the house, not the surrounding property:

"Catastrophic Ground Cover Collapse
Catastrophic ground cover collapse coverage is included under your existing home insurance policy.
However, your claim must meet four requirements before your insurance company will reimburse you for the loss:

1. The abrupt collapse of the ground cover;
2. A depression in the ground cover clearly visible to the naked eye;
3. ,Structural damage to the insured building, including the foundation; and
4. The insured structure being condemned and ordered to be vacated by the governmental agency authorized by law to issue such an order for that structure.

Again, all four of these conditions must be met for it to be considered catastrophic ground collapse. Incidents that meet only some of these conditions would require a sinkhole insurance policy."

This is correct BUT regular sink hole insurance covers where the house is settling and is still livable. Many people believe regular sink hole insurance covers collapses in their lawn, driveway, back yard, etc,. but it does not. Regular sink hole insurance that you pay for only covers settlement under any living area.

In reality, based on recent sink holes here in The Villages where homes were affected, the homes met the conditions for catastrophic ground collapse and was covered under the main insurance. This was the case recently where a sink hole developed on Nancy Lopez golf course. The affected home had no visible evidence to the naked eye by the newspapers and neighbors but the state declared it catastrophic.

[retiredguy123]

This is correct BUT regular sink hole insurance covers where the house is settling and is still livable. Many people believe regular sink hole insurance covers collapses in their lawn, driveway, back yard, etc,. but it does not. Regular sink hole insurance that you pay for only covers settlement under any living area.

In reality, based on recent sink holes here in The Villages where homes were affected, the homes met the conditions for catastrophic ground collapse and was covered under the main insurance. This was the case recently where a sink hole developed on Nancy Lopez golf course. The affected home had no visible evidence to the naked eye by the newspapers and neighbors but the state declared it catastrophic.
Correct. I have said that on this thread. There is a myth that sinkhole insurance covers the driveway and other property. I think this myth has been propagated by misinformed insurance agents. People who buy a sinkhole rider, should print out the rider and read it for themselves. Don't believe everything the "agent" tells you. The insurance company will not stand behind anything that is not stated in the policy documents.

[DollyL]

Checking on home insurance with independent agent. I asked about sinkhole insurance and agent said companies are not offering it on new policies. Has anyone else be told the same?

Also how important do you think it is? Our present policy has sinkhole but deductible is high - 10% of home value.

Thanks for your response.

Funny you ask this question…
I just got home after transferring my homeowners, car insurance, golf cart insurance & Umbrella policies to State Farm. Our agent is Julie Foust. She is associated with State Farm insurance with Connie Wise on Campbell Rd off 466 between Buena Vista Blvd & Belvedere.
Sink hole deductible is $1000
Yes, that’s right! $1000. The premium on the homeowners policy cost $180.
(I corrected my figures as I posted them previously in error)
Please let her know that I referred you. I receive no benefit for referrals. Thank you. Dolly (Elaine) Latello

[ithos]

Do you know if GPR is, or can be, included in a pre-purchase home inspection? Thanks

That would be a question for a Real Estate professional. If all parties agree then I am sure it could be done. Most likely the buyer would have to pay for the inspection or include it in the sales price.

I believe most owners woul not allow it as there is far more risk than gain for them. I will go out on a limb and say that the vast majority of homes in The Villages have not had this inspection.

[biker1]

Are you sure about that? My State Farm Policy's sink hole deductible is the same as the rest of the policy's deductible. $180 sound like the premium cost of the sink hole coverage.

Funny you ask this question…
I just got home after transferring my homeowners, car insurance, golf cart insurance & Umbrella policies to State Farm. Our agent is Julie Foust. She is associated with State Farm insurance with Connie Wise on Campbell Rd off 466 between Buena Vista Blvd & Belvedere.
Sink hole deductible is $180!
Yes, that’s right! $180!
Please let her know that I referred you. I receive no benefit for referrals. Thank you. Dolly (Elaine) Latello

[Chitown]

I have State Farm insurance and my homeowners policy covers both Sinkhole and catastrophic ground collapse. I specifically called my agent to make sure I had both.

[DollyL]

Are you sure about that? My State Farm Policy's sink hole deductible is the same as the rest of the policy's deductible. $180 sound like the premium cost of the sink hole coverage.

I did post that in error. Thank you for catching that.
The premium for sinkhole costs $180. The deductible is $1000.
Sorry for posting incorrectly.

[DollyL]

Are you sure about that? My State Farm Policy's sink hole deductible is the same as the rest of the policy's deductible. $180 sound like the premium cost of the sink hole coverage.

Sorry! I did post that figure in error.
The premium for sinkhole is $180 and the deductible is $1000

[Trident2]

Our standard policy cover FIXABLE sinkhole damage. I added total loss sinkhole coverage for $240 a year.
That sounds like a very good price. Who is your insurance agency/company. Would you mind sharing contact information?

[jrref]

Sorry! I did post that figure in error.
The premium for sinkhole is $180 and the deductible is $1000
This should tell you since the coverage is so cheap that the likelyhood of a sink hole occuring is deemed very low according to the insurance company. You are probably wasting your money but do what makes you feel secure.

[biker1]

That is true for home owner's insurance is general. The risk of your home burning down is very low. I suspect many people are capable of self-insuring but why bother when the financial leverage of insurance is so great.

This should tell you since the coverage is so cheap that the likelyhood of a sink hole occuring is deemed very low according to the insurance company. You are probably wasting your money but do what makes you feel secure.

[jabacon6669]

Your information does not seem to track with this explanation from Harry Levine Insurance. Also, both sinkhole insurance and catastrophic ground collapse insurance only cover the house, not the surrounding property:

"Catastrophic Ground Cover Collapse
Catastrophic ground cover collapse coverage is included under your existing home insurance policy.
However, your claim must meet four requirements before your insurance company will reimburse you for the loss:

1. The abrupt collapse of the ground cover;
2. A depression in the ground cover clearly visible to the naked eye;
3. ,Structural damage to the insured building, including the foundation; and
4. The insured structure being condemned and ordered to be vacated by the governmental agency authorized by law to issue such an order for that structure.

Again, all four of these conditions must be met for it to be considered catastrophic ground collapse. Incidents that meet only some of these conditions would require a sinkhole insurance policy."
Thanks for your response. My info is based on what I have been told from State Farm. So, I'm told that the state comes in and does a test, if it's caused by a limestone deposit below the earth. then it's a sink hole. You make no mention of this. You're just saying all 4 points must be met, whether there is limestone or not. This makes no sense. Or, the insurance companies are telling us what they want us to hear. Go figure?

[retiredguy123]

Thanks for your response. My info is based on what I have been told from State Farm. So, I'm told that the state comes in and does a test, if it's caused by a limestone deposit below the earth. then it's a sink hole. You make no mention of this. You're just saying all 4 points must be met, whether there is limestone or not. This makes no sense. Or, the insurance companies are telling us what they want us to hear. Go figure?
When I was shopping for sinkhole insurance, I found that many insurance salespeople were woefully uninformed about sinkhole insurance. The catastrophic ground collapse coverage is mandatory in Florida, so almost all policies are boilerplate and will cover the same thing. If you are interested in buying the optional sinkhole insurance rider, I would suggest that you get a copy of the rider and read it yourself. Mine is only a few pages long. You don't need a verbal explanation from an agent because they will most likely give you inaccurate information. Note that these "agents" are not legal agents of the company, and whatever they tell you is non-binding on them or the insurance company. The policy and the rider are the only documents that are binding on the company.