Does homeowners insurance cover sinkholes in Florida?

Every policy must cover catastrophic ground cover collapse, which is narrowly defined and requires the home to be condemned. Broader sinkhole coverage is optional and costs extra.

Why is sinkhole coverage a big deal in Pasco and Hernando?

A 2010 Office of Insurance Regulation data call found about 66% of Florida's sinkhole claims came from Hernando, Pasco and Hillsborough counties.

Are foundation cracks covered as a sinkhole?

Not under the mandatory catastrophic ground cover collapse coverage. Settling or cracking alone doesn't qualify. Optional sinkhole coverage may apply, depending on the policy.

Pasco and Hernando counties

Home insurance in Pasco and Hernando counties: sinkholes and what's covered

By the Florida Coverage Compare editorial team · Last updated October 31, 2026

The short answer

Pasco and Hernando sit in Florida's 'sinkhole alley.' A 2010 Florida Office of Insurance Regulation data call found about 66% of the state's sinkhole claims came from Hernando, Pasco and Hillsborough counties. Florida law requires every homeowners policy to cover catastrophic ground cover collapse, but broader sinkhole coverage is optional and costs extra.

Sinkhole alley

Reporting on the 2010 Office of Insurance Regulation sinkhole data call found that roughly two-thirds of Florida's sinkhole claims were concentrated in Hernando, Pasco and Hillsborough counties. The data is older, but it explains why insurers look closely at sinkhole risk here.

What every policy must cover

Under Florida Statute 627.706, every property insurer must cover catastrophic ground cover collapse. That requires all of the following: an abrupt collapse of the ground cover, a depression clearly visible to the naked eye, structural damage to the building including the foundation, and the building being condemned and ordered vacated by a government agency.

Settling or cracking alone does not qualify. That narrow definition is why the mandatory coverage pays only in severe cases.

Optional sinkhole coverage

Insurers must offer broader sinkhole coverage for an additional premium. It can cover sinkhole damage that falls short of a catastrophic collapse. In this area, ask an agent whether it's available for your home, what testing an insurer requires, and what the deductible is.

Auto insurance in Pasco and Hernando

Pasco and Hernando drivers carry Florida's minimums: $10,000 PIP and $10,000 property damage liability. Comprehensive coverage pays for storm and flood damage to your car.

Common questions in Pasco and Hernando

Does homeowners insurance cover sinkholes in Florida?: Every policy must cover catastrophic ground cover collapse, which is narrowly defined and requires the home to be condemned. Broader sinkhole coverage is optional and costs extra.
Why is sinkhole coverage a big deal in Pasco and Hernando?: A 2010 Office of Insurance Regulation data call found about 66% of Florida's sinkhole claims came from Hernando, Pasco and Hillsborough counties.
Are foundation cracks covered as a sinkhole?: Not under the mandatory catastrophic ground cover collapse coverage. Settling or cracking alone doesn't qualify. Optional sinkhole coverage may apply, depending on the policy.

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General information, not insurance advice. Florida Coverage Compare is not an insurance company or agent. Confirm details with a licensed agent or the official source.