You can sell a house with a sinkhole history in Central Florida, from Tampa Bay to Ocala, but you must tell the buyer about it. If an insurer paid a sinkhole claim, Florida law requires you to disclose, before closing, that the claim was paid and whether all the money went into repairs (Fla. Stat. 627.7073). In counties like Hernando, Pasco and Hillsborough, buyers and insurers expect it and will ask for the engineer’s report, the repair permit and proof the work was finished.
Why does Central Florida have so many sinkholes?
Most of Florida sits on limestone. Slightly acidic groundwater slowly dissolves it and leaves open spaces underground. What happens at the surface depends on the soil on top, according to a U.S. Geological Survey study of west-central Florida:
- Where sand sits over a clay layer, the clay can bridge a growing hole for years, then fail all at once. That is a cover-collapse sinkhole, the sudden kind. The USGS found this central area “reportedly has the greatest number of sinkhole occurrences in west-central Florida.”
- Where the cover is loose sand, sand trickles down as the rock dissolves. Those sinkholes form slowly and are usually only a few feet wide.
Heavy groundwater pumping in dry seasons makes things worse, the same study found. That study is from 1985, but the geology has not changed.
Where do sinkhole claims concentrate?
A Florida Senate report pulled 2006–2009 insurance claims from 211 insurers. Pasco, Hernando and Hillsborough had more than 66% of all sinkhole claims statewide. The report called them “sinkhole alley.” The shares were:
- Pasco County: 26.0%
- Hernando County: 23.8%
- Hillsborough County: 16.3%
- Pinellas County: 6.3%
- Marion County: 4.3%
- Polk County: 2.7%
- Orange County: 2.2%
- Citrus County: 1.8%
The same report notes that Lake, Seminole and Sumter counties have similar geology, but it gives no claim counts for them. One more thing: the 1985 USGS study said the thin-sand areas to the north, including parts of Hernando, Citrus and Marion, had few reported collapses. So a high claim count does not mean open holes everywhere. A claim is about structural damage to the house, which can come from slow ground movement. Either way, the claim history is what follows the house.
What do Central Florida sellers usually run into?
- Thin insurance options. By 2010, private insurers had stopped writing new business in the highest-claim areas, and one insurer would not bind coverage in zip codes with past sinkhole claims until the home passed inspection (Florida Senate report). Current law still lets insurers inspect before offering sinkhole coverage and nonrenew to remove it (Fla. Stat. 627.706).
- Buyers who want the engineer’s report. Many claims were paid but never repaired. One insurer’s 2009 review of 53 claims found only 10 had repair permits and 5 had finished repairs (Florida Senate report). Buyers know this, so they ask for proof.
- Lenders. A mortgage needs property insurance. Fannie Mae, for example, requires a policy on the homes behind the loans it buys (Fannie Mae Selling Guide). No insurance usually means no loan.
What counts as a sinkhole under Florida insurance law?
Fla. Stat. 627.706 sets up two kinds of coverage:
- Catastrophic ground cover collapse. Every homeowners policy must include it, but it is narrow. The ground must collapse suddenly, leave a visible depression, structurally damage the home, and lead a government agency to condemn the house and order it vacated.
- Sinkhole loss. Structural damage caused by sinkhole activity. Insurers must make it available for extra premium, with deductibles of 1%, 2%, 5% or 10% of the dwelling limit.
A sinkhole claim is barred unless the insurer gets notice within 2 years after the owner knew, or should have known, of the loss.
What does each sinkhole document prove?
The engineer (geotechnical) report: what caused the damage
After testing, a professional engineer or geologist certifies whether there is structural damage and whether sinkhole activity caused it, “within a reasonable professional probability” (Fla. Stat. 627.7073). It tells a buyer what was wrong and what repair was recommended. It does not prove the repair was done.
The repair permit: that the work was filed
A permit shows the work was put on record with the local building department. Buyers want one that was closed out with final inspections, not left open. Permit steps vary by city and county, so check with yours.
The certificate of completion: that the work was finished
Under the Florida Building Code, a certificate of completion is “proof that a structure or system is complete” (City of Ocala Building Division). After stabilization, the monitoring engineer also issues a report and files it with the clerk of court (Fla. Stat. 627.7073).
What is a sinkhole stabilization repair?
When a sinkhole loss is verified, the insurer must pay to “stabilize the land and building and repair the foundation” following its engineer’s recommendations. The owner must sign a repair contract within 90 days, and repairs must generally finish within 12 months (Fla. Stat. 627.707). The two main methods, as Citizens Property Insurance explains:
- Grouting. Cement grout is pumped deep under pressure to fill voids and firm up soil. Chemical grout treats shallower soil.
- Underpinning. Supports under the foundation stabilize or relevel the house. Citizens notes underpinning by itself does not repair the sinkhole.
Do I have to disclose a past sinkhole when I sell?
Yes. Besides the sinkhole statute, the Florida Supreme Court held in Johnson v. Davis (1985) that a home seller who knows of facts that materially affect value, which the buyer cannot readily see and does not know, must disclose them. Courts have found no “as is” exception (Florida Bar Journal). And hiding it rarely works: the insurer must file the engineer’s report with the county clerk, where it becomes public record.
Why does a past claim follow the property?
Recorded reports stay in county records. Insurers also check CLUE, a national claims database run by LexisNexis that holds up to five years of property claims, lists the address, and may count a prior owner’s loss if it relates to future risk (Utah Insurance Department).
How does selling as-is for cash work?
A cash buyer does not need a lender, so a buyer’s insurance or loan problem does not hold up closing. You still make the required disclosures. You hand over the documents you have, the buyer prices in any remaining repair or risk, and you close without fixing anything yourself.
How All About Real Estate can help
All About Real Estate LLC buys property directly for cash, as a principal, anywhere in Florida, including Central Florida, and has since 2014. We buy single-family homes, townhomes, condos, multifamily, mobile homes on land the owner owns, vacant land and commercial property, all as-is. We usually make a written offer within 24 hours and can close in as little as 7 days. Call, text or WhatsApp (786) 753-8500, 24/7, or contact us online. Se habla español.
Frequently asked questions
Do I have to disclose a sinkhole claim if the house was fully repaired?
Yes. If an insurer paid a sinkhole claim, Fla. Stat. 627.7073 requires you to tell the buyer before closing that the claim was paid and whether the full payment went to repairs.
Does selling as-is mean I don’t have to disclose?
No. Florida courts have found no “as is” exception to the duty to disclose known hidden defects in a home sale, as this Florida Bar Journal article explains.
Does a recorded sinkhole report put a lien on my house?
No. Under Fla. Stat. 627.7073, recording the report does not create a lien, encumbrance or title defect. It does make the report public, so a buyer or title company can find it.
Which Central Florida counties have the most sinkhole claims?
In 2006–2009 insurance data, Pasco, Hernando and Hillsborough led the state, followed by Pinellas, Marion, Polk, Orange and Citrus (Florida Senate Interim Report 2011-104). That data is more than 15 years old, but those counties still carry the reputation.
Is it harder to insure a sinkhole house in Hernando or Pasco?
It can be. Insurers may inspect before offering sinkhole coverage and may nonrenew a policy to remove it (Fla. Stat. 627.706). By 2010, private insurers had stopped writing new business in the areas with the most sinkhole claims (Florida Senate report).
Can I sell a sinkhole house that was never repaired?
Yes. You must disclose that the claim was paid and that the money was not fully used for repairs. Financed buyers may struggle, so these homes often sell to cash buyers at a price that reflects the work still needed.
Frequently asked questions
Do I have to disclose a sinkhole claim if the house was fully repaired?
Yes. If an insurer paid a sinkhole claim, Fla. Stat. 627.7073 requires you to tell the buyer before closing that the claim was paid and whether the full payment went to repairs.
Does selling as-is mean I don't have to disclose?
No. Florida courts have found no "as is" exception to the duty to disclose known hidden defects in a home sale, as this Florida Bar Journal article explains.
Does a recorded sinkhole report put a lien on my house?
No. Under Fla. Stat. 627.7073, recording the report does not create a lien, encumbrance or title defect. It does make the report public, so a buyer or title company can find it.
Which Central Florida counties have the most sinkhole claims?
In 2006–2009 insurance data, Pasco, Hernando and Hillsborough led the state, followed by Pinellas, Marion, Polk, Orange and Citrus (Florida Senate Interim Report 2011-104). That data is more than 15 years old, but those counties still carry the reputation.
Is it harder to insure a sinkhole house in Hernando or Pasco?
It can be. Insurers may inspect before offering sinkhole coverage and may nonrenew a policy to remove it (Fla. Stat. 627.706). By 2010, private insurers had stopped writing new business in the areas with the most sinkhole claims (Florida Senate report).
Can I sell a sinkhole house that was never repaired?
Yes. You must disclose that the claim was paid and that the money was not fully used for repairs. Financed buyers may struggle, so these homes often sell to cash buyers at a price that reflects the work still needed.
This article is general information, not legal or tax advice. Talk to a Florida attorney or CPA about your situation.
By Petru Pusta, owner of All About Real Estate LLC. Petru is a licensed Florida real estate broker (BK3293808) with Kariza Capital Realty LLC. All About Real Estate LLC buys property directly as a principal and is not a real estate brokerage.
Sources
- Fla. Stat. 627.706 (2026), Sinkhole insurance; catastrophic ground cover collapse; definitions
- Fla. Stat. 627.7073 (2026), Sinkhole reports
- Fla. Stat. 627.707 (2026), Investigation of sinkhole claims; insurer payment
- Florida Bar Journal, 'The Return of the Pink Panther or Johnson v. Davis, Redux' (June 2004)
- Utah Insurance Department, CLUE reports
- Citizens Property Insurance Corp., Grout Versus Underpinning (Oct 30, 2012)
- Florida Senate Interim Report 2011-104, Issues Relating to Sinkhole Insurance (Dec 2010)
- City of Ocala Building Division, Certificate of Completion (rev. 10/15/2021, citing 2020 FBC s. 111.5)
- USGS WRI 85-4126, Types, Features, and Occurrence of Sinkholes in the Karst of West-Central Florida (Sinclair et al., 1985)
- Fannie Mae Selling Guide B7-3-01 (12/14/2022)
