Quick answer: You can sell a Florida house with sinkhole history. If your insurer paid a sinkhole claim you made, Florida law requires you to tell the buyer before closing that the claim was paid and whether the full amount went to repairs. Florida courts also require a home seller to disclose known facts that materially affect value and are not readily observable or known to the buyer, even in an as is sale. Gather the engineering report, repair and stabilization records and permits before you list or accept an offer.
Parts of Florida are known for sinkholes, and many owners have a repair in the house’s past. Some had a claim paid and fixed the foundation years ago. Others were paid but never finished the work. A few have cracks today and are not sure what is underneath. The question is the same: will anyone buy it, and what do I have to say?
This guide explains the Florida rules on coverage and disclosure, the papers buyers and insurers ask for, and how the condition of the house points to different ways to sell. It is general information, not legal, engineering or insurance advice. A Florida real estate attorney, a licensed engineer and a licensed insurance professional should review your own case.
What Florida Insurance Covers
Florida separates two kinds of ground movement coverage (Florida Statute 627.706):
| Coverage | What the statute says |
|---|---|
| Catastrophic ground cover collapse | Every insurer that writes property insurance in Florida must cover it. It requires all four: an abrupt collapse of the ground cover, a depression clearly visible to the naked eye, structural damage to the building including the foundation, and the building being condemned and ordered vacated by the authorized government agency. |
| Sinkhole loss | Insurers must make it available for an appropriate additional premium. The insurer may require an inspection before issuing it. |
The difference matters when you sell. Most sinkhole activity never reaches the four conditions of a catastrophic collapse, so whether a past problem was covered, and whether the next owner can buy sinkhole coverage, often depends on the optional coverage and on the house’s records. A buyer’s insurer may ask for an inspection before it offers sinkhole coverage.
What You Must Disclose
A paid sinkhole claim
Florida has a specific rule. Under Florida Statute 627.7073, a seller whose sinkhole claim on the property was paid by the insurer 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.
The same statute requires the insurer to file and record the engineering report and certification with the county clerk of court, with the legal description of the property, the owner’s name and the amount paid. In other words, a paid claim is usually in the public record already, and a careful buyer or title search may find it.
Other known problems
Beyond that statute, Florida courts require a home seller to disclose known facts that materially affect the value of the property and are not readily observable or known to the buyer. That rule comes from the Florida Supreme Court decision in Johnson v. Davis, 480 So. 2d 625 (Fla. 1985) (The Florida Bar Journal). Cracks you have been watching, a past engineering report that found sinkhole activity, or repairs that were never finished can all fall under it. Ask your attorney how to describe them.
Disclosing early usually helps. Learning about sinkhole history late in a deal can cause a buyer to renegotiate or cancel. Buyers who see the reports up front can price the house and keep going.
Papers Buyers and Insurers Ask For
- The engineering or geological report that found sinkhole activity, if there was one.
- The claim file: claim number, the insurer’s decision letters and the amounts paid.
- The repair contract and scope: what was done, such as grouting or underpinning, and by whom.
- Completion or stabilization documents from the engineer or contractor, and any warranty that may transfer.
- Permits and final inspections from the city or county.
- Any monitoring done after the repair, such as crack measurements.
If you cannot find a document, ask the contractor, the engineer, your insurer and the county clerk. Gaps in the file make buyers and insurers cautious, so it is worth the calls.
See cash as is, creative terms and a 1% listing side by side, in writing. It takes about a minute.
Repaired, Paid but Not Repaired, or Unknown
| Where the house stands | What usually fits |
|---|---|
| Repaired and documented, with permits | Often a candidate for a regular market sale, with the records ready for buyers and their insurers |
| Claim paid, repair not finished | Disclose what was paid and what was not repaired. An as is buyer or a price that reflects the work is common. |
| Signs of movement, no report yet | Talk with an attorney before you list. An as is sale can avoid the time and cost of testing and repair, but you still disclose what you know. |
For more about selling a house that needs work, read our guide on whether to repair a house before selling in Florida. If you own in Hernando County, our Spring Hill selling page covers local options, and for Polk County see our Lake Wales selling page.
Three Ways to Sell a House With Sinkhole History
Every homeowner deserves options. Here are three, in this order. For a side by side view, see cash offer vs listing vs selling on terms.
1. Cash, as is
We may buy the property as is with our own funds, or our contract may be assigned to another buyer; your written offer will say which, so we do not need a lender to approve the foundation or a buyer’s insurer to issue sinkhole coverage before closing. We review the reports and records you have, inspect the house and make an offer in writing that reflects what we see.
Subject to qualification, property inspection, and transaction terms.
2. Creative terms: subject-to or seller financing
In a subject-to sale, the buyer takes the deed and makes the payments on your existing mortgage. The loan stays in your name. The lender can call the loan due under the due-on-sale clause. Both sides should use a real estate attorney. With sinkhole history, the paperwork should also say who insures the house, who handles any further repairs and how disclosures were made. With seller financing, you act as the bank and the buyer pays you over time, so your attorney should require the buyer to insure and maintain the house.
Subject to qualification, property inspection, and transaction terms.
3. A 1% full-service listing
If the repair is complete and documented, a listing on the MLS through our licensed brokerage partner may bring the highest price. Our partner is a separate licensed Florida brokerage. The listing fee is 1%. Buyer agent compensation is separate and negotiable. Have the engineering report, repair records and permits ready, because buyers and their insurers will ask.
Subject to qualification, property inspection, and transaction terms.
How HOMKEYS Can Help
HOMKEYS LLC buys homes across Florida from our office in Brickell, Miami. We show you cash, terms and a 1% listing side by side, in writing, and every closing goes through a licensed Florida title company. We cannot quote a price before we see the house and its records. Subject to qualification, property inspection, and transaction terms.
Frequently Asked Questions
Do I have to tell a buyer about a sinkhole claim from years ago?
If you made a sinkhole claim on the house and your insurer paid it, Florida Statute 627.7073 requires you to tell the buyer before closing that a claim was paid and whether the full amount was used to repair the damage. Separately, Florida courts require a home seller to disclose known facts that materially affect value and are not readily observable to the buyer. Ask a Florida real estate attorney how to word your disclosure.
Can a buyer find out about a sinkhole claim on their own?
Often, yes. When an insurer pays a sinkhole claim based on an engineering report, Florida Statute 627.7073 requires the insurer to file and record the report and certification with the county clerk of court, with the property’s legal description and the payment amount. That makes it part of the public record.
Does homeowners insurance in Florida cover sinkholes?
Every Florida property insurer must cover catastrophic ground cover collapse, which has four conditions, including that a government agency condemns the building and orders it vacated. Broader sinkhole loss coverage is something insurers must offer for an additional premium, and they may require an inspection before issuing it.
Will anyone buy a house that had a sinkhole repair?
Many repaired houses sell. Buyers, lenders and insurers want the paperwork: the engineering report, the repair contract, the completion or stabilization documents and the permits. A house with unrepaired damage usually fits a buyer who purchases as is. HOMKEYS offers are subject to qualification, property inspection, and transaction terms.
Should I repair the sinkhole damage before I sell?
It depends on the cost, whether a claim paid for the repair, and how long you can wait. A completed, documented repair can widen your buyer pool. If the repair is large or uncertain, comparing an as is offer with the cost and time of repair is reasonable. Get written estimates and talk with an attorney before deciding.
Not legal, engineering or insurance advice. This guide is general information about Florida home sales. Laws and insurance rules change, and every house is different. Talk with a Florida real estate attorney, a licensed engineer and a licensed insurance professional about your own case before you sign anything.
Tell us about the house and the records you have. We will show you cash, terms and listing side by side, in writing. Subject to qualification, property inspection, and transaction terms.
Sources
Last checked October 4, 2026.
⌂ Equal Housing Opportunity. HOMKEYS LLC does not give legal, tax, engineering or insurance advice. Talk with a Florida real estate attorney, engineer or licensed insurance professional about your situation.