Insurers in Florida are required to provide "catastrophic ground cover collapse" coverage as a component of a standard homeowners policy, according to the Insurance Information Institute. However, this isn't the same as sinkhole insurance coverage. Catastrophic ground cover collapse coverage must meet specific conditions.
The Florida Department of Financial Services describes catastrophic ground cover collapse as geological activity that results in all the following conditions:
The abrupt collapse of the ground cover
A depression in the ground cover clearly visible to the naked eye
Damage to a principal building including the foundation
The principal building being condemned and ordered to be vacated by the government agency authorized by law to issue such an order for that principal building
You may be covered by a standard homeowners insurance policy for catastrophic ground cover collapse, but only if the damage meets all four requirements. Sinkholes that do not meet all four criteria likely won’t be covered. Florida is currently the only state that requires catastrophic ground cover collapse to be included in a standard homeowners policy.
Insurance companies in the Sunshine State are also required to offer sinkhole coverage as an add-on or endorsement. However, they may require an inspection of your home and potentially decline to provide coverage based on the results.