{"id":243942,"date":"2025-05-16T00:36:47","date_gmt":"2025-05-16T00:36:47","guid":{"rendered":"https:\/\/peraltafinancing.com\/business\/insurance\/florida-insurance-policies-and-sinkhole-damage\/"},"modified":"2025-05-16T00:36:47","modified_gmt":"2025-05-16T00:36:47","slug":"florida-insurance-policies-and-sinkhole-damage","status":"publish","type":"post","link":"https:\/\/fivemor.com\/?p=243942","title":{"rendered":"Florida Insurance Policies and Sinkhole Damage"},"content":{"rendered":"


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Your home can be seriously damaged by many different events. Some risks are relatively consistent no matter where you live, such as house fires or damage caused by negligent contractors. Other dangers may be significantly higher based on your location. For example, Florida homeowners are at much greater risk of damage caused by hurricanes, storm surges, and sinkholes than anywhere else in the country.\u00a0<\/p>\n

The problem is that many homeowners aren\u2019t aware of the risks they face and may not get appropriate insurance coverage. This is particularly common with sinkholes and other \u201cearth movements.\u201d Many homeowners assume that something as dramatic as a sinkhole swallowing their home should automatically be covered by insurance, but this isn\u2019t the case.\u00a0<\/p>\n

The last thing you want to find out after a sinkhole has destroyed your home\u2019s structural integrity is that your policy doesn\u2019t cover the damage. Keep reading to learn when sinkholes are covered by insurance, how to tell if you have coverage, and what you can do if your insurer tries to deny your claim for covered damage.<\/p>\n

When Are Sinkholes Covered by Insurance?<\/h2>\n

Most homeowners with insurance policies have what is known as \u201ccomprehensive\u201d coverage. This means the policy covers damage from all sources except those specifically excluded. This is by far the best option in most cases because it significantly reduces the likelihood that the insurer can deny your claim.\u00a0<\/p>\n

However, it is important to read the exclusions on your policy carefully. Most policies automatically exclude damage caused by \u201cearth movement,\u201d which includes everything from earthquakes to mudslides to sinkholes. Insurers exclude this type of damage because it is often an extremely expensive issue to fix. Even minor instances of earth movement can structurally destabilize entire homes, requiring invasive repairs or tearing down the old structure and rebuilding from scratch. Including coverage for this damage would increase the cost of the policy and put the insurer at greater liability, so most exclude it as a matter of course.<\/p>\n

As such, you cannot assume that your homeowner\u2019s insurance policy covers sinkholes, even if it is comprehensive. Instead, you must read the policy carefully or review it with a skilled insurance lawyer<\/a>. You will likely need a specific sinkhole or earth movement rider in addition to your standard policy to ensure your home is protected.\u00a0<\/p>\n

Florida and \u201cCatastrophic Ground Cover Collapse\u201d<\/h3>\n

While home insurers often exclude earth movement in their standard policies, some states mandate that they provide some form of coverage. For example, Title XXXVII. Insurance \u00a7 627.706<\/a> of the Florida Statutes requires all insurers to cover damage caused by \u201ccatastrophic ground cover collapse.\u201d This is defined as:<\/p>\n