Sinkhole Insurance
 

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.

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 Have Sinkhole Insurance with Progressive
 

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?

Our Most Recent
 

Our most recent bill for Feb 2025-2026.

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.

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...)

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.

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...rsn=a4c83969_4

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

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

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...

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

Catastrophic Ground Cover Collapse vs Sinkhole Coverage - Explained).

Hello Rocksnap, who do you get your insurance through?

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.