Selling a House With Sinkhole History in Florida

Sinkhole activity is a real concern in parts of Central Florida, and a house with a prior sinkhole insurance claim or known ground movement raises specific questions for a seller. Florida does not have a standardized sinkhole disclosure form the way it does for flood history, but sellers who received a paid sinkhole claim have a specific statutory disclosure duty at closing. Understanding that distinction matters before listing or selling.

Sinkhole activity and the paid-claim disclosure rule

Florida does not have a standardized, standalone sinkhole disclosure form the way it does for flood history. But that does not mean a paid sinkhole claim can go undisclosed. Under Florida Statute 627.7073(2)(c), a seller of real property on which the seller made a sinkhole claim that the insurer paid must disclose to the buyer, before closing, that a claim was paid and whether the full amount of the proceeds was used to repair the sinkhole damage. This is a specific, mandatory statutory disclosure duty, not just a general good-practice recommendation. A title company or Florida real estate attorney can advise on exactly how to document and provide this disclosure for a specific property.

How Florida law treats sinkhole insurance coverage

Under Florida Statute 627.706, every insurer authorized to sell property insurance in Florida must provide coverage for a catastrophic ground cover collapse, and must make separate sinkhole loss coverage available to policyholders for an additional premium, subject to inspection and a deductible the statute allows insurers to set. This is a requirement placed on insurers, not a disclosure requirement placed on sellers, but it is the reason sinkhole coverage exists as its own category, separate from standard homeowners coverage, and why a property's sinkhole insurance history is worth understanding before a sale.

How a sinkhole claim gets verified and recorded

When a sinkhole insurance claim is investigated, Florida Statute 627.7073 requires a professional engineer or professional geologist to issue a written report and certification to both the insurer and the policyholder. That report states whether structural damage was identified, whether sinkhole activity caused it within a reasonable professional probability, and, if so, includes a recommendation for stabilizing the land and building and repairing the foundation. If sinkhole activity is ruled out instead, the report says that too. Separately, under F.S. 627.7073(2), once an insurer has paid a sinkhole claim, the insurer must file a copy of that report and certification, along with the property's legal description, the owner's name, and the amount paid, with the county clerk of court, who records it. This report is an important document for a seller to locate and keep, since it's the actual record of what was investigated, what was paid, and what was, or wasn't, confirmed.

What to gather before selling

If the property has any sinkhole history, useful records include the engineer's or geologist's report and certification connected to any claim, documentation of any stabilization or foundation repair work performed, and the insurance claim file itself, including whether the claim was paid, denied, or the cause was ultimately ruled out as something other than sinkhole activity. Having this documentation organized makes it much easier to give a buyer, or a title company, an accurate picture rather than a vague description of "some ground issue years ago." A cash, as-is sale doesn't remove the need to gather and disclose this history accurately; it just removes the pressure to complete additional repairs before finding a buyer willing to purchase the property as it currently stands.

Where this differs from flood or storm damage

Sinkhole history is a distinct issue from flood history, which has its own statutory disclosure form, and from wind or storm damage, which is a separate insurance and disclosure category entirely. See our guides on Florida's flood disclosure law and selling a storm-damaged house in Florida if either of those applies to your property as well. A house can have sinkhole history without flood or storm issues, or any combination of the three, and each has to be evaluated and disclosed on its own facts.

Frequently asked questions

Does Florida law require a specific sinkhole disclosure form when selling a house?

Florida does not have a standardized, standalone sinkhole disclosure form like the flood disclosure form. But under F.S. 627.7073(2)(c), a seller who made a sinkhole claim that the insurer paid must disclose to the buyer, before closing, that a claim was paid and whether the full amount of the proceeds was used to repair the sinkhole damage. This is a specific, mandatory statutory disclosure duty tied to a paid claim, not a general form requirement.

What does Florida law say about sinkhole insurance coverage?

Under F.S. 627.706, every insurer authorized to sell property insurance in Florida must provide coverage for a catastrophic ground cover collapse, and must make sinkhole loss coverage available for an additional premium. This is an insurance-coverage requirement on insurers, not a disclosure requirement on sellers, but it explains why sinkhole coverage and sinkhole claims exist as a distinct category in Florida.

How does a sinkhole claim actually get verified and recorded in Florida?

Under F.S. 627.7073, once testing is performed, a professional engineer or professional geologist issues a written report and certification to both the insurer and the policyholder stating whether structural damage exists, whether sinkhole activity caused it, and, if so, a recommendation for stabilizing the land and building and repairing the foundation. Once an insurer has paid a sinkhole claim, it must also file a copy of that report and certification, along with the property's legal description, the owner's name, and the amount paid, with the county clerk of court, who records it. This becomes an important record for a seller, since it documents what was investigated, what was paid, and what was, or wasn't, confirmed.

What should I gather before selling a house with sinkhole history?

Any engineering or geology report and certification connected to a sinkhole insurance claim, records of any stabilization or foundation repair work performed, and the insurance claim history itself. Whether the property was fully stabilized, only partially addressed, or the claim was denied or the cause ruled out entirely all matter, and a title company or Florida real estate attorney can help confirm what needs to be disclosed to a buyer based on the actual documented history.

Have a property with sinkhole history and want to understand your options? Call OfferLink at 407-584-9111. We buy as-is across Florida, including Pasco County, Hernando County, and Hillsborough County. This article is general information, not legal advice. A title company or Florida real estate attorney reviewing the property's actual claim and repair history is the right resource for confirming what needs to be disclosed for a specific sale.