What is catastrophic ground cover collapse coverage?

Catastrophic ground cover collapse insurance is a form of limited sinkhole insurance coverage included by default in all Florida home insurance policies. It only covers sinkhole damage that creates a clearly visible depression in the ground and extensive structural damage, causing the insured home to be condemned by government agencies. 

What is catastrophic ground cover collapse? 

Florida sits on a foundation of limestone and dolostone, which slowly dissolves as groundwater moves through it, carving out hollow spaces underground. Normally, the layer of soil and sand above these voids settles gradually, which is what causes typical sinkhole activity. But if a void grows large enough, that ground cover can lose its support all at once, collapsing abruptly rather than settling slowly. That sudden collapse is what triggers catastrophic ground cover collapse coverage (CGCC), as opposed to the slower, more gradual sinkhole activity that standard Florida sinkhole insurance is built to cover.

Catastrophic ground cover collapse insurance kicks in when:

1. The ground cover abruptly collapsed.

2. A depression in the ground cover is clearly visible to the naked eye.

3. There’s structural damage to the home and its foundation.

4. A government agency condemns the home and orders it to be vacated.

Important note: CGCC coverage will not apply unless all four of these conditions are met.

Under Section 627.706 of the Florida Statutes, all home insurance policies in Florida are required to include catastrophic ground cover collapse coverage. It offers key protection when your home faces extreme sinkhole damage.

Catastrophic ground cover collapse vs. sinkhole insurance

Catastrophic ground cover collapse coverage is considerably more restrictive than sinkhole coverage, which may be available as an optional add-on, or endorsement, to your policy. 

While CGCC insurance covers only major sinkhole damage that renders your home uninhabitable by government orders, sinkhole insurance covers minor to moderate damage that may be caused by sinkholes, such as cracks in your foundation or buckling floors. It’s optional coverage that’s subject to fewer conditions and limitations than CGCC, but it will add to your policy cost. It also carries a separate, percentage-based deductible (the portion of a covered loss you're responsible for paying yourself). 

What catastrophic ground cover collapse coverage doesn't include

Catastrophic ground cover collapse insurance comes with certain exclusions. It won’t cover damage to: 

• Open land

• Driveways

• Pools

• Decks

• Patios

• Sidewalks

Warning signs of catastrophic ground cover collapse

Watch for signs that a sinkhole may be growing under your home. The following telltale symptoms could indicate that layers under the surface of the ground are moving or eroding:

• Floors that are uneven or sinking

• A foundation that's shifted or no longer level

• Walls that are bulging or buckling

• Low spots or dips forming in the yard

• Cracks in walls or ceilings

• Water pooling in a spot that used to drain fine

• A new hole in the ground that wasn't there before

Learning the early signs of a ground surface collapse can help you take action before the damage gets out of hand.

What to do after a catastrophic ground cover collapse

In the event of a catastrophic ground cover collapse: 

• Evacuate the area immediately. Get yourself, your family, and your pets to safety before taking any other steps. 

• Remove personal items if you can do so safely. Follow instructions from authorities regarding return to the property. 

• Contact your insurance company to report the loss and begin the claims process.

• Notify the city or county building inspector of the collapse. 

• Work with your claims adjuster to have the damage to your home professionally inspected. 

A professional engineer or geologist may work with your insurer to evaluate the damage to your home and prepare a report to support your claim. You’ll also need to get quotes from contractors for repairs. In the meantime, your insurance company may reimburse you for temporary housing such as a hotel or short-term rental, along with meals, laundry, pet boarding, and other additional living expenses resulting from being displaced from the insured property. 

Frequently asked questions  

Does homeowners insurance cover sinkhole damage that doesn't meet all four CGCC criteria?

If your home is damaged by a sinkhole, but all four catastrophic ground cover collapse (CGCC) criteria are not met, standard homeowners insurance will not cover the damage unless you added a sinkhole insurance endorsement to your policy. 

Does insurance cover a collapsed retaining wall?

It depends. Retaining walls are generally treated the same way as other detached outdoor structures, such as a shed or fence. They are typically excluded from catastrophic ground cover collapse insurance but may be covered by sinkhole insurance (if you added it to your homeowners coverage) depending on the specifics of your policy. Read your policy documents carefully to find out what is and is not covered, or speak to your insurer if you still have questions.

Does catastrophic ground cover collapse coverage cost extra?

No, catastrophic ground cover collapse coverage doesn’t cost extra. It’s included automatically in all Florida home insurance policies. Sinkhole insurance, on the other hand, may be available for purchase as an optional policy add-on and will cost extra in exchange for the broader financial protection it offers.

Can you get sinkhole insurance if you live outside Florida?

Sinkhole insurance is not available in all states or from all insurers outside Florida. If you live in a region with active sinkhole risks, compare quotes from insurers in your area and ask about sinkhole endorsements to find the right company for you.