Insurance companies in Florida have the right to decline homeowner’s insurance if a house is near a sinkhole, even a half-mile away or more, depending the particular company’s standard for coverage. Since each insurer has their own underwriter guidelines, some will accept more risk than others, and it may be possible to be declined by one insurer and accepted by another.

    Also, homes in counties that have a high occurence of sinkholes may be required to pass a sinkhole inspection as a prerequisite for insurance. See our article Where are sinkholes most likely to occur in Florida? for the top ten.

    So it’s a good idea to investigate insurance coverage as soon as possible when buying a home. And, of course, having a visible sinkhole nearby not only makes insurance more difficult, it also may reduce the value of a home and limit the pool of your potential buyers when you decide to sell in the future.

    All Florida insurance companies are required by law to include "catastrophic” sinkhole coverage as part of any policy. But, to meet the standard to make a catastrophic sinkhole claim, your home must have damage so significant that the local building department condemns it. Many companies offer a rider for an additional fee to cover lesser sinkhole damage.  

Go to What are the Florida laws regarding sinkhole insurance? to learn more.

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Here’s links to a collection of our other blog posts about SINKHOLES:

• Why do so many more sinkholes open up after a hurricane?

• What is a chimney sinkhole? 

• What are the warning signs of a sinkhole? 

• What causes sinkholes? 

• How can homebuyers protect themselves against buying a house over a sinkhole?  

• What is my chance of buying a Florida home over a sinkhole? 

• How does a repaired sink hole under a house affect its market value?

• Are sinkholes happening more often? 

• What are the basic facts about sinkholes? 

• Should I be concerned about an old sinkhole on a property?

• Should I be concerned about my house if a sinkhole opens in my neighbor's yard? 

• Can a home inspector determine if there are any sinkholes on a property?

• Is it safe to buy a house with sinkhole foundation repair?

• How can I tell whether my house foundation problems are caused by a sinkhole or expansive clay soil? 

   Visit our SINKHOLES and “SHOULD I BUY A…” pages for other related blog posts on this subject, or go to the INDEX for a complete listing of all our articles.