Homeowners Insurance in Florida – Sinkhole Coverage and Catastrophic Ground Cover Collapse

Not too long ago, homeowners insurance in Florida came with sinkhole coverage by endorsement.  It was a no brainer to add the coverage to a policy because the yearly cost for it was somewhere in the ballpark of $4.  Then came a rash of claims and lawsuits and Florida home insurance companies were on the hook for millions of dollars.  Most of the claims were probably just settling of the house or exterior wall cracks, but the way the policies were written, the insurance company had to pay the claim under the sinkhole provision and fill the ground with truckloads of grout.  Of course, this was a losing scenario for the insurance companies and something had to be changed.

Now a days, Florida statues mandate every homeowners insurance in Florida policy to come with catastrophic ground cover collapse, with an option to add a sinkhole endorsement by request.  What’s interesting to know and depending on where you  live (read low probability sinkhole areas), some insurance companies allow you to add the endorsement without the need to pay for or have an inspection conducted.  We know who these companies are.  So, check with us if you want sinkhole insurance by endorsement and we’ll try to find you a policy.  However, in most areas, to add the sinkhole endorsement, you need to order an inspection by the inspection company which your insurance company approves.  In most cases, your insurance company will help you with paying a portion of the inspection cost.

Explaining Sinkhole Coverage and Catastrophic Ground Cover Collapse as it Pertains to Homeowners Insurance in Florida

So, what is the difference between catastrophic ground cover collapse and sinkhole insurance?  That’s a good question.  And, the best way to answer this question is to encourage you to watch this informative video by Tower Hill Insurance Group.  They have put together an excellent video that will clear up any questions you may have regarding this issue.  You may find that catastrophic ground cover collapse is sufficient coverage to protect your home and the deductible is less.

All About Sinkhole Coverage: Courtesy of Tower Hill Insurance Group


Now that you’ve watched the video, you are probably relived to find out that the big-time sinkhole losses probably covered. What’s even better is that your are likely only subject to your regular all other perils homeowners insurance in Florida deductible and not a whopping 10% sinkhole deductible. If you have any further questions, or need assistance in finding the right policy for your needs, give us a call at 352-200-2066 today and we’ll work up a quote for you.  We also give you the ability to receive a quotation for homeowners insurance in Florida by filling out the form below.  We’ll have your quote to you shortly.