Sink hole insurance

[Coop63]

Moving to TV next month and getting quotes on insurance. Sink hole coverage option is quite expensive. What do others think?

This question was asked nearly 3 years ago so wondering if anything has changed.

Also interested in thoughts about insurance and preferred carrier, etc

Thanks in advance

[retiredguy123]

I have sinkhole insurance, and I would recommend it if you can get it.

[bagboy]

Moving to TV next month and getting quotes on insurance. Sink hole coverage option is quite expensive. What do others think?

This question was asked nearly 3 years ago so wondering if anything has changed.

Also interested in thoughts about insurance and preferred carrier, etc

Thanks in advance


My only suggestion would be this; When you talk to one or more insurance agents or agencies, ask them to explain to you in detail what Catastrophic Ground Collapse is. Every policy that I'm aware of in Florida has that coverage, and your new policy will have it. Then get an explanation of just what Sinkhole Insurance is and what it covers. Once you are informed about the difference between the two, you'll be prepared to make a decision that fits your needs.
Good Luck and Welcome to The Villages. You'll love it here.

[Rainger99]

Good explanation of the difference between sinkhole and catastrophic ground collapse.

The chances of either one occurring is very small. But so is a hurricane or a fire.

Sinkhole Coverage vs. Catastrophic Ground Collapse - Harry Levine Insurance (https://www.harrylevineinsurance.com/sinkhole-coverage-vs-catastrophic-ground-collapse/)

It would be interesting to see how many people have it and how many people do not have it.

I have it.

[asianthree]

4 houses in TV only one had sinkhole insurance. Close to 20 years so far no sinkhole issues, one tornado damage, one hurricane damage, hurricane deductible is insane. Most aren’t prepared for ten thousand and up deductible cash on hand

[retiredguy123]

My only suggestion would be this; When you talk to one or more insurance agents or agencies, ask them to explain to you in detail what Catastrophic Ground Collapse is. Every policy that I'm aware of in Florida has that coverage, and your new policy will have it. Then get an explanation of just what Sinkhole Insurance is and what it covers. Once you are informed about the difference between the two, you'll be prepared to make a decision that fits your needs.
Good Luck and Welcome to The Villages. You'll love it here.
When I tried to do that, I found that most of the so called "agents" I asked either did not know the answer, or worse, they pretended they did and they got it totally wrong. You really need to do your own research online. Insurance agents are just salespeople. They do not represent the insurance company and they will not put anything in writing.

[Laurawilcox]

We have sinkhole insurance and did explore both sinkhole and catastrophic. We worked with Ethan at Nathan’s State Farm in Wildwood. (352) 748-5272. We had been with The Villages insurance brokers, sorry not there anymore so don’t care about their new name, and it is so nice to be working with a local agent Office that picks up the phone every time and if the one you’re working with, isn’t there, someone else can help. It feels like old time service. So far very pleased moved everything to them. The negative is that their Umbrella Insurance I believe is high, but we still balanced out a savings and were able to get sinkhole coverage.

[bagboy]

When I tried to do that, I found that most of the so called "agents" I asked either did not know the answer, or worse, they pretended they did and they got it totally wrong. You really need to do your own research online. Insurance agents are just salespeople. They do not represent the insurance company and they will not put anything in writing.

I can't disagree at all. It is on consumers to find answers in several ways if possible. I was lucky to find an agent at Vanns Agency in Leesburg who explained the difference enough for me to make an informed decision. Or in my case, a calculated risk..

[Rainger99]

Or in my case, a calculated risk..

So you don’t have it?

[jimhoward]

The circumstances in which sink hole coverages kicks in, the big deductible is exceeded, yet catastrophic ground collapse does not kick in are very narrow.

Your house proper (not just your property) must be significantly damaged by a sink hole, but not damaged so much that it is condemned in order for it to apply.

I bought the coverage myself, but I it felt like a waste of money.

[jrref]

Remember, sink hole insurance Only covers any settling of the home itself. So, for example if you wake up one morning and see a sink hole in your front yard or driveway, your sink hole insurance will Not cover it.

The homes affected by sink holes in the Villages so far, have all been characterized as catestrophic ground collapse and were covered since All Florida policies have this coverage.

[bagboy]

So you don’t have it?

I do not

[jrref]

Getting sink hole or flood insurance depends on you tolerance for risk. I think your home here in the Villages has a better chance of getting hit by lightning since six did last year and burnt down. I don't know of any homes in the Villages that needed to use flood insurance unless they were in a flood plain over the past 10 years or so, and only a couple of homes had sinkhole damage over the past 10 years and they all were considered catastrophic and were covered. And did we have a serveral sinkholes here in the Villages? Yes, but they were not under a home where the sink hole insurance would have covered it.

[MarshBendLover]

As quickly as they are moving dirt, filling swamps, and throwing up houses, there is no way these newer houses will "settle" completely flat. Overtime, the ground will move from water underground, the concrete slab will crack and the house corner will drop. It won't be a sinkhole as defined. It will not be visible above ground, the home will be not uninhabitable and therefore not covered by CGCC. It may be 20, it may be 30 years, but the far south areas will pay the price for quick development.

[Rainger99]

Last year, I contacted the state insurance department and tried to get the actual number of sinkhole claims in the state in recent years.

They told me that they don’t keep those records.

[Rwirish]

No brainer, you get the coverage.

[Michael 61]

When I tried to do that, I found that most of the so called "agents" I asked either did not know the answer, or worse, they pretended they did and they got it totally wrong. You really need to do your own research online. Insurance agents are just salespeople. They do not represent the insurance company and they will not put anything in writing.

Agree - I’m a retired insurance claims manager. Many insurance sales agents have little or no knowledge of all the terms/conditions/definitions/exclusions in the policy they are selling. Your sales agent is not a claims adjuster.

It was always heart breaking when I had to deny a claim because there was no coverage for a particular peril or there was a policy exclusion that the policy holder was unaware of, and it was never properly disclosed or discussed by the sales agent at the time the policy was purchased.

People, you have to research this stuff yourself, and read your insurance policies in detail - especially the declarations page and the applicable exclusions. Do not depend solely on the verbal explanation by your sales agent.

If your claim is ever denied because of a policy exclusion, and your rebuttal is “My Sales Agent told me otherwise”, that defense will not fly.

[goneil2024]

I suggest those interested in sinkhole occurrences in Florida (Statewide) consult the Florida Office of Insurance Regulation (OIR). Also, a quick search using AI tool [ChatGBT] revealed that according to the “Insurance Journal” between from 2006 to 2010 that there were 24,671 both open and closed sinkhole claims reported [Online reference accessed 6.14.2025, in “Insurance Journal” 11/12/2010; ]Report Confirms Florida Sinkhole Insurance Woes are Deep, Spreading (https://www.insurancejournal.com/news/southeast/2010/11/12/114838.htm?utm_source=chatgpt.com).

Recent data may be more difficult to obtain, likely consider FOIA request to the DOI as an option. However, as noted by others in this thread there are requirements, regulations and costs. Also, for those that are so inclined there is quite a lot of information available wrt, regulations, coverage and causes.

As with most property issues the occurrences tend to be location specific with some areas experiencing more occurrences. In our specific case the insurer evaluated our location in TV (WatersEdge) and determined it was low risk and included the coverage with our homeowners policy.

[hollyrich2]

Like all insurance, the coverage you choose must meet your individual needs. I’m an insurance agent and we do not have a carrier that will offer sinkhole coverage. It’s very costly and if a carrier offers it they require you to pay for an inspection with no guarantee of coverage. It’s been my experience no one is approved. Catastrophic ground collapse is included in every homeowner policy. If you’d like a quote without this coverage, please contact me 954-437-9220 ext. 308 or email hrichardson4@allstate.com. We’re an award winning Allstate Agency. I can provide quotes from several Allstate partners and have helped many people save money in The Villages. Thank you, Holly Richardson.

[retiredguy123]

Like all insurance, the coverage you choose must meet your individual needs. I’m an insurance agent and we do not have a carrier that will offer sinkhole coverage. It’s very costly and if a carrier offers it they require you to pay for an inspection with no guarantee of coverage. It’s been my experience no one is approved. Catastrophic ground collapse is included in every homeowner policy. If you’d like a quote without this coverage, please contact me 954-437-9220 ext. 308 or email hrichardson4@allstate.com. We’re an award winning Allstate Agency. I can provide quotes from several Allstate partners and have helped many people save money in The Villages. Thank you, Holly Richardson.
Regarding your statement that sinkhole coverage is very costly, I have sinkhole coverage on my Progressive homeowner's policy. The total annual premium is $1,202. The sinkhole portion of the premium is $138, or about 11 percent of the total premium. The deductible is $26,900, which is 10 percent of the dwelling value. Note that I have had sinkhole coverage since the house was new, and I have never been required to get an inspection.

[Villager24]

It’s a personal risk management decision, but I chose to get it when we bought. I don’t recall it being excessively expensive. It seems like there was something about if I didn’t get it when I initially purchased homeowners insurance and decided to add it later it would be higher, but that could have been a sales technique. We used The Villages Insurance (now The Baldwin Group).

[Rocksnap]

My $240 annually for an over half a million home isn’t bad.

[jrref]

Regarding your statement that sinkhole coverage is very costly, I have sinkhole coverage on my Progressive homeowner's policy. The total annual premium is $1,202. The sinkhole portion of the premium is $138, or about 11 percent of the total premium. The deductible is $26,900, which is 10 percent of the dwelling value. Note that I have had sinkhole coverage since the house was new, and I have never been required to get an inspection.

Doesn't the very low cost tell you something? It says there is an extreemly low risk to the insurance company or the premium would be way higher. In your case the $138 is good for peace of mind but otherewise it's probably a waste of money unless you know for sure you are living in an area that is prone to sink holes.

[jrref]

Let's ask the question a different way:

Has anyone who lives in the Villages had sink hole damage where the sink hole insurance covered it?

No Catastrophic Ground Collapse, but separate sink hole insurance.

[retiredguy123]

Doesn't the very low cost tell you something? It says there is an extreemly low risk to the insurance company or the premium would be way higher. In your case the $138 is good for peace of mind but otherewise it's probably a waste of money unless you know for sure you are living in an area that is prone to sink holes.
I agree, but I also pay about $240 per year for collision and comprehensive coverage on my car that is only worth $10,000. I would probably drop that coverage before I dropped the sinkhole coverage. But, unlike many people, I always evaluate the cost of insurance, and, if I think it is getting too high, I will drop it. If my homeowner's insurance gets too high, I will cancel it and self-insure my house.

[TCULBERSON]

occurred

[Babbs1957]

There was a STICKY back in 2015 that was kept updated. Search sinkhole map, 1/2 down you will see it started by VillagerFrog58.

[Ptmcbriz]

Like any insurance, if you can afford to repair or rebuild out of your savings account then I guess it’s an optional insurance for you. If you can’t, then you need the insurance. We have State Farm and don’t think it is expensive.

[CarlR33]

My $240 annually for an over half a million home isn’t bad.LOL, I would be interested in the policy coverage and deductible for that cost.

[sowtime444]

Back in 2015 someone figured out that all sinkholes in The Villages were less than 84 feet in elevation.

https://www.talkofthevillages.com/forums/villages-florida-general-discussion-73/plotted-where-villages-sinkholes-have-occurred-155945/

For all the people saying that "all sinkholes in The Villages have been catastrophic collapse and therefore covered" is not true. Someone in the north near Nancy Lopez didn't have a catastrophic collapse a year ago.

What I was told is that everyone on that retention pond suspects the Villages-owned pipes, but The Villages wouldn't let the pipes be inspected.

[jrref]

Back in 2015 someone figured out that all sinkholes in The Villages were less than 84 feet in elevation.

https://www.talkofthevillages.com/forums/villages-florida-general-discussion-73/plotted-where-villages-sinkholes-have-occurred-155945/

For all the people saying that "all sinkholes in The Villages have been catastrophic collapse and therefore covered" is not true. Someone in the north near Nancy Lopez didn't have a catastrophic collapse a year ago.

What I was told is that everyone on that retention pond suspects the Villages-owned pipes, but The Villages wouldn't let the pipes be inspected.

Where is the proof of the Lopez sink hole because from what I remember it was considered catastrophic.

[Gramfry52]

I just added sinkhole coverage on my State Farm policy for approx. $250 yr. Deductible is $2000. If there was any foundation damage, it most likely would cost a lot more than the deductible.

[blibecap]

Getting sink hole or flood insurance depends on you tolerance for risk. I think your home here in the Villages has a better chance of getting hit by lightning since six did last year and burnt down. I don't know of any homes in the Villages that needed to use flood insurance unless they were in a flood plain over the past 10 years or so, and only a couple of homes had sinkhole damage over the past 10 years and they all were considered catastrophic and were covered. And did we have a serveral sinkholes here in the Villages? Yes, but they were not under a home where the sink hole insurance would have covered it.

May we ask where did you get this data?

[blibecap]

Getting sink hole or flood insurance depends on you tolerance for risk. I think your home here in the Villages has a better chance of getting hit by lightning since six did last year and burnt down. I don't know of any homes in the Villages that needed to use flood insurance unless they were in a flood plain over the past 10 years or so, and only a couple of homes had sinkhole damage over the past 10 years and they all were considered catastrophic and were covered. And did we have a serveral sinkholes here in the Villages? Yes, but they were not under a home where the sink hole insurance would have covered it.
May we ask where did you get this data?

[Rainger99]

People, you have to research this stuff yourself, and read your insurance policies in detail - especially the declarations page and the applicable exclusions. Do not depend solely on the verbal explanation by your sales agent.

Do you really think that these policies are written so that the average man can understand them?

My policy is over 100 pages of detailed legalese that is not comprehensible to the average person. Unless you are an insurance adjuster, the vast majority of people would not understand what is covered and what is excluded.

Why Are Insurance Policies So Difficult To Understand?

Why Are Insurance Policies So Difficult To Understand? | Strategic Claim Consultants (https://strategicclaimconsultants.com/insurance-policies-difficult-understand/#:~:text=Unfortunately%2C%20insurance%20companies% 20are%20notorious,text%20packed%20into%20policy%20 pages).

[Michaeljay]

We just build a new as of dec 11 2025
We have State Farm for our house insurance. I don’t remember the cost for the sink hole coverage but I do remember that the deductible was 10% of the value of the home. So if yours is only $2000 deductible then I would get sink hole coverage. Who’s your agent because I would like to talk to him to see if he can make us the same policy



25I just added sinkhole coverage on my State Farm policy for approx. $250 yr. Deductible is $2000. If there was any foundation damage, it most likely would cost a lot more than the deductible.

[jrref]

May we ask where did you get this data?

Yes, the six homes destroyed by lightning is documented by the Villages Lightning Study Group and all six were in the Villages News.

The sink hole episode at Lopez last year was also in the Villages News..

[Rainger99]

Do you really think that these policies are written so that the average man can understand them?

My policy is over 100 pages of detailed legalese that is not comprehensible to the average person. Unless you are an insurance adjuster, the vast majority of people would not understand what is covered and what is excluded.

Why Are Insurance Policies So Difficult To Understand?

Why Are Insurance Policies So Difficult To Understand? | Strategic Claim Consultants (https://strategicclaimconsultants.com/insurance-policies-difficult-understand/#:~:text=Unfortunately%2C%20insurance%20companies% 20are%20notorious,text%20packed%20into%20policy%20 pages).

This is from my policy.

Subrogation. An "insured" may waive in writing before a loss all rights of recovery against any person. If not waived, we may require an assignment of rights of recovery for a loss to the extent that payment is made by us. If an assignment is sought, an "insured" must sign and deliver all related papers and cooperate with us. Subrogation does not apply under Section II to Medical Payments to Others or Damage to Property of Others.

This is with AI translating that paragraph into simple English. The second one is much easier to understand.

Subrogation means we (the insurance company) can step into your shoes to recover money from someone who caused a loss we paid for. You (the insured) can give up your right to recover from someone else in writing before a loss happens. If you don’t give up that right, we might ask you to transfer those recovery rights to us for the amount we paid for the loss. If we ask for this, you need to sign and provide any necessary documents and help us out. Subrogation doesn’t apply to medical payments to others or damage to someone else’s property under Section II of the policy.

[jrref]

It's telling that no one has responded that they had sink hole insurance and used it here in the Villages.

[Justputt]

It's telling that no one has responded that they had sink hole insurance and used it here in the Villages.


I have life insurance, and I haven't used that yet either..........

[jrref]

I have life insurance, and I haven't used that yet either..........

Right, but if there were such a sink hole problem here in the Villages where sink holes appeared under the home and the sink hole insurance paid for it, I would think we would have some responses by now.

[snbrafford]

Moving to TV next month and getting quotes on insurance. Sink hole coverage option is quite expensive. What do others think?

This question was asked nearly 3 years ago so wondering if anything has changed.

Also interested in thoughts about insurance and preferred carrier, etc

Thanks in advance

====================================
Well I had that question 7 years ago too. There are sinkholes in TV and in FL. One of the retention ponds near a golf course went dry a few years ago. I've lived in two villages that have had sinkholes - fortunately in or near the street. The most recent one was about 1/4 mile away and took a couple of months to be repair about a two foot hole in the side of the road. I would not drive my car or golf cart near it until repaired.
As far as insurance. Regular HO won't cover if you have that kind of loss so you are better to have it than not - like any insurance when you need it, you need it real bad.
Every year, I check out my HO insurance to make sure I'm getting the "best deal" - not necessarily the cheapest. I have found that different companies have a different PERCENTAGE DEDUCTIBLE (similar to hurricane) and thus the higher the coverage on the house, the higher the deductible. I was very happy to find recently that State Farm has ZERO DEDUCTIBLE (other than you normal policy deductible) on sink hole losses and State Farm was comparable to my previous company plus their auto coverage was less so my home/auto coverage premiums has come out a little lower.