According to the Florida department of Financial Services Florida have more sinkholes that any other State. The report titled; Sinkholes and Catastrophic Ground Collapse notes that all insurance companies must offer sinkhole coverage. However this is most often offered as a rider to the policy and at an extra cost to the home owner. Florida residents concerned about sinkholes should check with their insurer to determine the type of coverage they have on their home.
When buying a home we provide buyers whenever possible a disclosure completed by the seller dealing with the condition of the home and property including sinkhole related issues. The seller has the opportunity to disclose to the buyer:
- Any sinkhole claims the home owner have filed with their insurance company.
- Is the seller aware of any past or present movement or deterioration of walls or foundations?
- Is the seller aware of any settling, earth movement, upheaval, or earth stability problems on the property or in the neighborhood?
We also strongly encourage home buyers to hire a professional licensed home inspection company as a precaution before finalizing the purchase of the home.
Homes being lost or damaged by sinkholes are not an everyday occurrence but when they do happen people are naturally concerned. Being prepared and receiving available disclosures and inspections can work to ease the concerns of buyers and sellers.
Related Florida real estate blog posts on seller disclosures
