Florida Sinkhole Coverage: Catastrophic Ground Cover Collapse vs. Sinkhole Loss, Claims and Deadlines
Every Florida homeowners policy has to cover a catastrophic ground cover collapse. None of them has to include sinkhole loss coverage automatically. Those sound like the same thing. Under s. 627.706, Florida Statutes, they are not, and the gap between them is where homeowners get surprised (s. 627.706(1)).
Catastrophic ground cover collapse (CGCC) applies only when four things all happen: the ground collapses abruptly, there's a depression you can see with the naked eye, the building has structural damage, and a government agency condemns the house and orders it vacated. Sinkhole loss coverage is the optional add-on that pays for structural damage caused by sinkhole activity even when the house is still standing and nobody has condemned it. Insurers must make it available for an extra premium, but they can inspect the property first and say no.
So the real question for anyone in Hillsborough, Pasco, Hernando, Marion or Citrus County isn't "do I have sinkhole coverage?" It's "which one do I have?" Here's how to tell, what each one pays for, the deadlines once you file, and how Citizens Property Insurance Corporation handles it.
Source: s. 627.706, Florida Statutes (2026).
CGCC vs. sinkhole loss coverage, side by side
Both coverages come from the same statute, use the same definitions, and run through the same claim process. The difference is the trigger. CGCC is written for the dramatic event: the hole opens, the house is red-tagged. Sinkhole loss coverage is written for the slow version, where the ground under a foundation ravels into a void over months and the walls crack, the floors drop and the doors stop closing.
| Catastrophic ground cover collapse | Sinkhole loss coverage | |
|---|---|---|
| Required on a Florida homeowners policy? | Yes, every authorized property insurer must provide it | No. Insurer must make it available for an additional premium |
| Can the insurer inspect or decline first? | No. It must be on every policy; the statute's inspection right applies to sinkhole loss coverage | Yes, it may require an inspection before issuing it |
| What triggers it | Abrupt collapse, visible depression, structural damage, and the structure condemned and ordered vacated: all four | Structural damage to the covered building caused by sinkhole activity |
| Settling or cracking alone | Expressly not covered | Covered only if it meets the statute's "structural damage" tests and sinkhole activity is the cause |
| Contents | Covered if there's a CGCC loss | Covered only if there's structural damage from sinkhole activity |
| Additional living expenses | Per policy terms | Only if there's structural damage from sinkhole activity |
| Deductible | Per policy terms; the statute doesn't set a special one | May be a separate 1%, 2%, 5% or 10% of dwelling limits |
| Can be limited to the main house? | Yes, insurer may restrict to the principal building | Yes, same |
Source: s. 627.706(1)-(2), Florida Statutes (2026); Florida DFS, Sinkholes and Catastrophic Ground Cover Collapse (Feb. 2026).
If your policy excludes sinkhole loss, the law requires the insurer to tell you in bold type of at least 14 points, using this exact wording: "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." (s. 627.706(3)). If you've seen that notice in your renewal packet, you have CGCC only.
Why CGCC is hard to trigger
In my reading, condition four is the hardest to meet. The structure has to be "condemned and ordered to be vacated by the governmental agency authorized by law to issue such an order" (s. 627.706(2)(a)). A house with a cracked slab, sticking doors and a dip in the backyard isn't condemned. A house with a hole in the side yard and no damage to the building isn't covered either, because condition three requires structural damage to the building.
The statute also says it outright: "Damage consisting merely of the settling or cracking of a foundation, structure, or building does not constitute a loss resulting from a catastrophic ground cover collapse." The Department of Financial Services puts the practical result plainly in its consumer guide: if a sinkhole damages your home, any of the four criteria is missing, and you don't have sinkhole coverage, "your insurance company will likely not pay for the damage" (DFS guide).
"Structural damage" is a defined term too, and it's a high bar. Under s. 627.706(2)(k), it means one of five things:
- Interior floors displaced beyond ACI 117-90 or Florida Building Code variances, making the interior unfit for service or a safety hazard.
- Foundation displaced beyond ACI 318-95 or Building Code variances, so primary structural members can't carry their design loads.
- Exterior load-bearing walls or other vertical primary structural members listing, leaning or buckling so a plumb line through the center of gravity falls outside the middle third of the base.
- A significant likelihood of imminent collapse because the supporting ground is moving.
- Damage on or after October 15, 2005, that is "substantial structural damage" under the Building Code.
DFS's example is worth remembering: "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." That's true even if you bought sinkhole loss coverage. The optional coverage widens the trigger; it doesn't lower the structural-damage bar.
Getting sinkhole loss coverage: inspections, underwriting and Citizens
The statute says insurers "shall make available" sinkhole loss coverage for an additional premium, and in the next sentence lets them require an inspection first (s. 627.706(1)(b)). DFS describes how that works in practice: an insurer's willingness to provide sinkhole coverage depends on the ground under your home, and if geological testing shows sinkhole activity on the property or within a certain distance, the insurer may decline (DFS guide). An insurer can also nonrenew a policy to remove sinkhole coverage, as long as it says that's why, offers a policy with CGCC, gives an actuarially reasonable premium credit and lets you apply for a sinkhole endorsement under its underwriting rules (s. 627.706(4)).
Citizens Property Insurance Corporation, the state-created insurer of last resort, publishes its rules, so they're a useful benchmark:
- Which policies. Sinkhole Loss coverage is an optional endorsement on Citizens' HO-3, HO-8, DP-1 and DP-3 (with building coverage) policies. Citizens says its tenant contents, condominium and mobile home policies automatically include Sinkhole Loss coverage, and CGCC is automatically included in most Citizens policies (Citizens, Sinkholes). Condo owners should read the Florida condo insurance page too.
- When it inspects. Citizens requires a sinkhole inspection if you answer yes to any sinkhole question on its request form, or if the property is in one of 16 counties: Alachua, Citrus, Hamilton, Hernando, Hillsborough, Lake, Manatee, Marion, Pasco, Pinellas, Polk, Seminole, Sumter, Suwannee, Wakulla or Washington (Citizens, Sinkhole Inspections).
- Who pays. Citizens orders the inspection from an approved company. You pay half the fee, Citizens pays half, and your half is nonrefundable whether coverage is approved or declined. Citizens says most decisions come within 45 days of the order.
- Timing. Citizens won't add Sinkhole Loss coverage after a policy term has started, so it asks policyholders who want it at renewal to tell their agent well before the renewal date.
- Outbuildings. By statute, Citizens policies issued or renewed on or after January 1, 2012, that cover sinkhole loss don't cover sinkhole damage to appurtenant structures, driveways, sidewalks, decks or patios (s. 627.351(6)).
Citizens also says it has had more than 15,000 sinkhole-related claims reported since 2006 (Citizens). It says it requires the inspections to protect policyholders from the rising costs of Sinkhole Loss coverage. Its deductible for that coverage is covered below.
One thing a buyer's inspection won't settle: DFS notes that four-point inspections "normally do not address the potential for sinkholes on your property" (DFS guide). My four-point inspection post explains what that report does cover.
Where subsidence gets reported: the FGS county counts
The Florida Geological Survey, part of the Department of Environmental Protection, keeps a statewide database of reported subsidence incidents. As of November 2, 2026, it held 4,461 records. Read them with the FGS's own warning in mind: a "subsidence incident" is a reported depression that usually hasn't been verified by a licensed geologist, and "the majority of the incidents have not been field-checked and the cause of subsidence is not verified" (FGS, Subsidence Incident Reports). Broken pipes, buried debris and compacting soil can all look like sinkholes. These are reports, not confirmed sinkholes, and not insurance claims.
Source: Florida Geological Survey, Subsidence Incident Reports dataset (DEP open data, queried Nov. 2, 2026)
Show the numbers
| County | Reports |
|---|---|
| Hillsborough | 618 |
| Marion | 491 |
| Citrus | 450 |
| Pasco | 345 |
| Hernando | 315 |
| Polk | 304 |
| Orange | 233 |
| Suwannee | 213 |
| Lake | 179 |
| Seminole | 172 |
| Leon | 155 |
| Pinellas | 121 |
Hillsborough, Pasco and Hernando together account for 1,278 reports, about 29% of the statewide total. But Marion (491) and Citrus (450) both outrank Pasco, and the top five counties together hold about half of all records (50%). Compare South Florida: Palm Beach, Broward, Miami-Dade and Monroe combined have 27.
Every county in that top 12 except Orange and Leon is also on Citizens' 16-county inspection list. If you live in one of those counties, assume any insurer offering sinkhole loss coverage will want to look at the property first, and price it accordingly. To check reports near a specific address, the FGS points people to the same dataset and its sinkhole helpline at 850-245-2118 (FGS sinkhole FAQ).
The sinkhole deductible: 1%, 2%, 5% or 10%
Florida law lets a residential policy carry a separate sinkhole deductible of 1%, 2%, 5% or 10% of the dwelling limit, with a premium discount for each step (s. 627.706(1)(b)). The percentage is of Coverage A, not of the damage. Citizens says its sinkhole deductible is "typically 10 percent" of Coverage A and may vary by contract (Citizens, Deductibles).
| Sinkhole deductible | On a $350,000 dwelling limit (hypothetical) |
|---|---|
| 1% | $3,500 |
| 2% | $7,000 |
| 5% | $17,500 |
| 10% | $35,000 |
Source: Deductible options from s. 627.706(1)(b); dollar amounts are illustrative math, not a quote.
Example: say your dwelling limit is $350,000, you carry a 10% sinkhole deductible, and a verified sinkhole loss needs $90,000 of stabilization and repair. You'd pay the first $35,000, and the policy would pay up to $55,000, subject to its other terms. Before you buy the endorsement, decide whether you could actually write that first check.
Sinkhole claim steps and the statutory deadlines
The sinkhole statutes have their own claim process, and several clocks run on you, not the insurer. Here's the order things happen in, with the deadline that applies at each step.
| Step | What happens | Deadline or rule |
|---|---|---|
| 1. Notice | You report the claim per your policy's terms | Within 2 years after you knew or reasonably should have known about the sinkhole loss (initial, supplemental and reopened claims), s. 627.706(5) |
| 2. Inspection | Insurer inspects for structural damage that may be from sinkhole activity, then sends written notice of what it found and your testing rights | Required on every sinkhole loss claim, s. 627.707(1), (3) |
| 3. Testing | If structural damage is confirmed and the cause is unknown or consistent with sinkhole loss, insurer hires a professional engineer or geologist to test; insurer pays | Only if sinkhole loss is covered, s. 627.707(2), s. 627.7072 |
| 3a. Denied without testing? | You can demand testing in writing; you pay 50% of the cost or $2,500, whichever is less, refunded if sinkhole loss is confirmed | Within 60 days after you receive the denial, s. 627.707(4)(b) |
| 4. Report | Engineer or geologist issues a report verifying or eliminating sinkhole loss, with repair recommendations; the insurer's expert findings are presumed correct | s. 627.7073(1) |
| 5. Dispute? | Either side can request DFS neutral evaluation once a sinkhole report exists | Conference: reasonable efforts within 90 days of DFS receiving the request, s. 627.7074(7) |
| 6. Repair contract | You sign a contract for stabilization and foundation repair per the engineer's report | Within 90 days after the insurer confirms coverage and notifies you; paused during neutral evaluation, restarts 10 days after it ends, s. 627.707(5)(b) |
| 7. Repairs finished | Stabilization and all other repairs to the structure and contents | Within 12 months after signing the repair contract, unless agreed otherwise or in neutral evaluation, litigation, appraisal or mediation, s. 627.707(5)(d) |
Source: s. 627.706(5), s. 627.707, s. 627.7072, s. 627.7073, s. 627.7074, Florida Statutes (2026).
The two-year notice window is longer than the general rule for other property claims, which bars a claim not reported within 1 year after the date of loss (s. 627.70132(2)). But the two-year text applies to claims "under an insurance policy that provides sinkhole coverage." If you only have CGCC, I wouldn't lean on that extra year. Report it right away either way.
On the testing demand in step 3a: say the insurer's testing would cost $7,000. Half is $3,500, so the $2,500 cap applies and that's your share. You get it back if the testing confirms sinkhole loss. There's a related rule in the other direction: if you requested testing, the insurer warned you in writing about the cost and gave you a chance to withdraw, and the claim turns out to have been filed without good faith grounds, you reimburse 50% of the testing cost, capped at $2,500 (s. 627.707(6)).
Citizens says the engineer's testing alone can take up to six weeks, and the geologist's up to two more months (Citizens, Sinkhole Investigations).
The repair rules: you must fix it, and the money follows the work
You can't take a check for a verified sinkhole loss and sell the house as-is. If a covered building suffers a sinkhole loss or a catastrophic ground cover collapse, "the insured must repair such damage or loss in accordance with the insurer's professional engineer's recommended repairs" (s. 627.707(5)).
- ACV first. Until you sign a repair contract, the insurer can limit payment to the actual cash value of the loss, and that figure excludes underpinning, grouting and any other repair below the foundation (s. 627.707(5)(a)).
- Then pay-as-you-go. Once you sign, the insurer pays as the work is performed and the costs are incurred. It can't make you advance the money (s. 627.707(5)(c)). With your lender's written approval, it can pay the contractor directly (s. 627.707(5)(e)).
- Limits. If the insurer's engineer decides the repair can't be done within the policy limits, the insurer must either pay to complete the recommended repair or tender the limits to you, without subtracting what's already been spent on repairs under a personal residential policy (s. 627.707(5), (5)(c)).
- No rebates. If you accept a rebate or kickback from the repair contractor, your coverage is void and you have to refund it. A contractor who offers one commits insurance fraud, a third-degree felony (s. 627.707(5)(f)).
- Renewal. An insurer can't nonrenew you because of sinkhole claims unless it has paid the dwelling limit, and it can't nonrenew if you repaired the house according to the engineer's recommendations (s. 627.707(7)).
Citizens says stabilization generally takes five to six months once a contract is signed, including a curing period after grouting, and building repairs typically take another three to four months. It also offers a voluntary managed repair program, with work monitored by an engineering firm and a five-year warranty on completed stabilization, to policyholders it deems eligible (Citizens, Sinkhole Repairs). Citizens' page shortens the statute to "begin repairs within 90 days"; the statute's actual words are "enter into a contract" within 90 days, so sign the contract inside that window even if the crew can't start yet.
Neutral evaluation: the sinkhole version of mediation
If you and the insurer disagree about whether it's a sinkhole, how to fix it, or what it costs, the state's answer is neutral evaluation through the Department of Financial Services (s. 627.7074). For sinkhole disputes it replaces the regular property mediation program under s. 627.7015, which my Florida insurance mediation post covers. It doesn't cancel your policy's appraisal clause.
| Question | Answer under s. 627.7074 |
|---|---|
| When is it available? | Once a sinkhole report has been issued under s. 627.7073. Either side can request it |
| Who's the evaluator? | A DFS-certified professional engineer or professional geologist with sinkhole experience and alternative dispute resolution training |
| What must it decide? | Causation, all methods of stabilization and repair above and below ground, and the costs |
| Who pays? | The insurer pays reasonable costs; a party that brings a court reporter pays for that |
| Picking the evaluator | Parties choose from DFS's list; if no agreement in 14 business days, DFS appoints one. Each side can strike two without cause |
| When's the conference? | Evaluator sets it within 14 business days of referral and makes reasonable efforts to hold it within 90 days of DFS receiving the request |
| The report | Sent to both sides and DFS within 14 days after the conference |
| Binding? | No. But it's mandatory if either side asks, and the evaluator's report is admitted in any later lawsuit |
| Effect on deadlines | Pauses the 90-day repair contract clock and tolls the time to sue |
Source: s. 627.7074 and s. 627.707(5)(b), Florida Statutes (2026); DFS, Settling Your Sinkhole Claim.
To request it, DFS takes requests online or on form DFS-I4-1784 sent to NeutralEvaluation@myfloridacfo.com. Include the insurer's sinkhole report, who issued it, why you're asking and what's in dispute. If you don't have a lawyer, you can ask for a DFS consumer affairs specialist to be available, though the specialist can't give legal advice (DFS).
One recent change matters if you read older articles. The 2021 statute made an insurer pay up to $2,500 of the policyholder's attorney's fees for neutral evaluation when the evaluator verified a sinkhole and estimated repair costs above the insurer's written offer (2021 text). That provision is gone from the 2022 statutes onward, after ch. 2022-271 (2022 text). Today, if the insurer agrees in writing to follow the evaluator's recommendation and does so on time, and you turn it down, the insurer isn't liable for extracontractual damages on the issues the evaluation decided (s. 627.7074(14)). The core sinkhole definitions and claim rules in ss. 627.706, 627.707 and 627.7073 haven't been amended since 2014 or earlier, based on the History notes in the 2026 statutes.
Buying or selling a house with a sinkhole history
A paid sinkhole claim leaves a public paper trail. The insurer must file the engineer's report and certification, the property's legal description, the owner's name, any neutral evaluator's report, the stabilization certification if there is one, and the amount paid with the county clerk of court, who records it. Before taking payment, you have to record any sinkhole report you commissioned yourself, at your cost. When stabilization is done, the monitoring engineer records a report certifying the repairs (s. 627.7073(2)-(3)).
The statute says recording isn't a lien or a title defect. In practice, it's searchable, and buyers and insurers will find it. The law also requires a seller whose own sinkhole claim was paid to tell the buyer before closing that a claim was paid and whether the full amount was used to repair the sinkhole damage (s. 627.7073(2)(c)).
If you're the buyer:
- Search the county's official records for sinkhole reports on the address, and ask for the repair certification.
- Line up insurance before you're committed. Citizens, for one, wants the four-point inspection on a home with a prior sinkhole claim dated within 90 days before the policy's effective date, instead of its usual 12 months (Citizens FAQ 3251).
- Don't assume sinkhole loss coverage will be offered on a house with a history. CGCC will be on the policy; the optional coverage is up to underwriting.
What to check on your declarations page and policy
Pull your declarations page and policy jacket and look for these. If you can't find an answer, ask your agent to show you in writing.
| Look for | What it tells you |
|---|---|
| A "Sinkhole Loss" endorsement listed among the forms | If it's not there, assume you have CGCC only |
| The 14-point bold notice about CGCC | It's required when sinkhole loss is excluded, so finding it means you don't have the optional coverage |
| A separate sinkhole deductible (1%, 2%, 5% or 10%) | Your out-of-pocket on a sinkhole loss; multiply by Coverage A |
| Coverage A (dwelling) limit | Drives the percentage deductible and the cap on what the insurer pays for stabilization and repair |
| Principal building limitation | Whether detached garages, pools, driveways and fences are excluded from CGCC and sinkhole coverage |
| Contents and loss of use wording for sinkhole | These apply only if the building itself has structural damage from sinkhole activity |
| Policy type (HO-3, HO-6, DP-3, mobile home) | At Citizens, condo, tenant and mobile home policies include sinkhole loss; HO-3, HO-8, DP-1 and DP-3 need the endorsement |
Source: s. 627.706(1)-(3), Florida Statutes (2026); Citizens, Sinkholes; Citizens, Deductibles.
Sinkhole coverage and flood coverage are separate questions. If water is part of your risk picture, the Florida flood insurance page covers that separately. For a broader map of Florida's homeowners rules, see my Florida homeowners insurance laws post, and the Florida home insurance page explains how I work with Florida homeowners.
If a hole opens or the house starts moving
Get people out if the structure looks unsafe, and fence or tape off the hole; DFS warns you could be liable if someone is hurt (DFS guide). If there's a risk of physical harm, the FGS says to call your local law enforcement agency (FGS sinkhole FAQ). Then call your insurer or agent and your city or county building inspection department, as DFS recommends. Photograph cracks and yard changes with dates, and put every deadline from the insurer's letters on the calendar the day they arrive: 60 days to demand testing after a denial, 90 days to sign a repair contract after coverage is confirmed. For complaints about how a claim is handled, the DFS Division of Consumer Services is at 1-877-693-5236 (DFS guide).
FAQ
Is sinkhole coverage required in Florida?
No. Florida requires every property insurer to cover catastrophic ground cover collapse, but sinkhole loss coverage is optional. Insurers must make it available for an additional premium and may require an inspection before issuing it.
What is catastrophic ground cover collapse?
Under s. 627.706, it is geological activity that causes all four of these: an abrupt collapse of the ground cover, a depression visible to the naked eye, structural damage to the building including the foundation, and the structure being condemned and ordered vacated by a government agency. Settling or cracking alone does not qualify.
What is the sinkhole deductible in Florida?
Florida law allows a separate sinkhole deductible of 1%, 2%, 5% or 10% of the policy's dwelling limit. Citizens Property Insurance Corporation says its sinkhole deductible is typically 10% of Coverage A.
How long do I have to file a sinkhole claim in Florida?
Under s. 627.706(5), a claim under a policy that provides sinkhole coverage is barred unless notice is given within 2 years after the policyholder knew or reasonably should have known about the sinkhole loss.
Do I have to use sinkhole claim money to repair the house?
Yes. If a covered building suffers a sinkhole loss or catastrophic ground cover collapse, the insured must repair it according to the insurer's engineer's recommendations, and the insurer can limit payment to actual cash value, excluding below-foundation work, until a repair contract is signed.
Your own policy wording and Florida law control how any of this applies to your home. Confirm your situation with a licensed agent, the Florida Department of Financial Services or Office of Insurance Regulation, or, for legal questions, an attorney.
Sources
- Florida Statutes s. 627.706, Sinkhole insurance; catastrophic ground cover collapse; definitions (2026)
- Florida Statutes s. 627.707, Investigation of sinkhole claims; insurer payment; nonrenewals (2026)
- Florida Statutes s. 627.7072, Testing standards for sinkholes (2026)
- Florida Statutes s. 627.7073, Sinkhole reports (2026)
- Florida Statutes s. 627.7074, Alternative procedure for resolution of disputed sinkhole insurance claims (2026)
- Florida Statutes s. 627.7074 (2021 version)
- Florida Statutes s. 627.7074 (2022 version)
- Florida Statutes s. 627.70132, Notice of property insurance claim (2026)
- Florida Statutes s. 627.7015, Alternative procedure for resolution of disputed property insurance claims (2026)
- Florida Statutes s. 627.351, Citizens Property Insurance Corporation (2026)
- Florida DFS: Sinkholes and Catastrophic Ground Cover Collapse consumer guide (Feb. 2026)
- Florida DFS: Settling Your Sinkhole Claim, Where to Find Help (Apr. 2024)
- Citizens Property Insurance Corporation: Sinkholes
- Citizens Property Insurance Corporation: Sinkhole Inspections
- Citizens Property Insurance Corporation: Deductibles
- Citizens Property Insurance Corporation: Sinkhole Claims
- Citizens Property Insurance Corporation: Sinkhole Investigations
- Citizens Property Insurance Corporation: Sinkhole Repairs
- Citizens FAQ 3251: Acceptable age of a four-point inspection report
- Florida Geological Survey (DEP): Subsidence Incident Reports
- Florida Geological Survey: Subsidence Incident Reports dataset (DEP open data)
- Florida Geological Survey (DEP): Sinkhole FAQ
This article is for general educational purposes only and is not legal, tax or insurance advice. Coverage depends on the actual policy, its terms, conditions and exclusions, and state law. Maru Insurance · WA License (WAOIC) #1365574 · FL License #G363233 · NPN 22261820.