What happened at the Rialto apartments in Dr. Phillips, Orlando?
A recent engineering report determined that a sinkhole caused an Orlando apartment building to slowly sink, months after roughly 200 families were evacuated. The property is right around the corner from our office, making this a particularly local reminder of a Florida insurance issue that is often misunderstood. Sinkhole coverage and catastrophic ground cover collapse coverage are not the same thing. Florida law requires certain property insurers to provide catastrophic ground cover collapse coverage, while broader sinkhole coverage may require additional coverage or an endorsement. Call or Text (407)781-1600 if you want help reviewing your policy.
Sinkholes can feel like one of those uniquely Florida risks that we hear about but rarely expect to encounter ourselves.
Then one happens practically in our backyard.
ClickOrlando recently reported that an engineering investigation into the Rialto Apartments in Orlando determined a sinkhole had opened beneath portions of a building and caused it to slowly sink. The complex had been evacuated months earlier after residents reported cracking, popping noises and other signs of structural instability.
Approximately 200 families were ordered out of the building.
For us at Sun Insurance Services, this story hits especially close to home because the property is right around the corner from our office. It is also an important opportunity to explain something we regularly find Florida homeowners do not fully understand: having homeowners insurance does not necessarily mean every type of sinkhole-related damage is covered.
What happened at the Orlando apartment building?
The Rialto Apartments were evacuated after significant cracking and signs of structural instability appeared at the property. According to ClickOrlando, inspectors found cracking and a large gap beneath the building. A subsequent engineering report determined that a sinkhole beneath two sections of the building caused the structure to slowly sink.
The situation demonstrates why ground movement should be taken seriously. Cracking, doors suddenly becoming difficult to open, changes in floors or foundations and visible ground depressions can warrant prompt investigation.
This does not mean every crack indicates a sinkhole. Florida homes can develop cracks for many reasons. Determining the cause generally requires qualified professionals.
What should Florida homeowners know about sinkhole insurance?
Florida insurance policies distinguish between sinkhole loss coverage and catastrophic ground cover collapse coverage. Those terms sound similar, but they can provide very different protection.
Under Florida Statute 627.706, insurers authorized to transact property insurance in Florida must provide coverage for catastrophic ground cover collapse. Florida law also requires those insurers to make sinkhole loss coverage available for an additional premium, subject to applicable underwriting requirements.
That distinction matters because damage can involve sinkhole activity without satisfying the much narrower definition of a catastrophic ground cover collapse.
What qualifies as catastrophic ground cover collapse in Florida?
Florida law requires four conditions to be present for an event to meet the statutory definition of catastrophic ground cover collapse.
- The ground cover abruptly collapses.
- A depression in the ground is clearly visible.
- The covered building, including its foundation, suffers structural damage.
- The appropriate government agency condemns the insured structure and orders it vacated.
All four conditions matter. Settling or cracking by itself does not meet Florida’s statutory definition of catastrophic ground cover collapse.
This is one of the most important details for Florida property owners to understand. A property can experience concerning ground movement or structural damage without necessarily meeting all four requirements.
How is sinkhole coverage different?
Sinkhole loss coverage can address qualifying structural damage caused by sinkhole activity even when an event does not satisfy all four catastrophic ground cover collapse requirements.
The Florida Department of Financial Services explains that sinkhole coverage may provide protection when settlement or weakening of the ground causes qualifying structural damage to the home or foundation.
Depending on the insurer and property, this coverage may require an additional premium and an inspection. Eligibility, deductibles and coverage provisions vary by policy and carrier.
If you are unsure which type of coverage appears on your homeowners policy, Call or Text (407)781-1600. We can help you identify what your current policy says and whether additional options may be available.
Does renters insurance matter in a situation like this?
Renters insurance can be important when tenants are displaced, but coverage depends on the cause of loss and the specific policy.
The Florida Department of Financial Services notes that renters policies typically insure personal property against specified covered causes of loss, which may include catastrophic ground cover collapse. Broader sinkhole coverage may be available for an additional premium.
Renters should also review their policy’s loss-of-use or additional-living-expense provisions. These provisions may help with certain additional expenses when a covered loss makes the residence uninhabitable, subject to the policy’s terms, limits and exclusions.
An evacuation order alone does not automatically establish insurance coverage. The cause of the damage and policy language matter.
What should you do if you notice possible ground movement?
Safety comes first if you see sudden or significant structural or ground changes.
The Florida Department of Financial Services recommends evacuating when necessary, notifying the insurance company or agent promptly and contacting the appropriate local building inspection department when a sinkhole or catastrophic ground cover collapse may have occurred.
Potential warning signs can include unusual cracking, portions of a structure shifting or sinking, visible ground depressions or sudden changes that affect doors, floors or foundations. These signs can have causes unrelated to sinkholes, so they should be evaluated rather than assumed to be sinkhole activity.
Should Orlando homeowners review their sinkhole coverage?
Florida homeowners should know whether their policy provides only catastrophic ground cover collapse coverage or also includes broader sinkhole coverage.
You do not need to become an insurance policy expert. Start by looking for the terms sinkhole loss and catastrophic ground cover collapse in your policy and endorsements.
If you are shopping for coverage, ask whether sinkhole coverage is available, whether an inspection is required and what deductible would apply.
Sun Insurance Services is an independent Florida insurance agency helping consumers compare available coverage options from the insurance carriers we represent. You can request a homeowners insurance quote online or Call or Text (407)781-1600 to discuss your property.
Quick Takeaways
- A recent engineering report determined that a sinkhole caused portions of an Orlando apartment building to slowly sink.
- The building had previously been evacuated, displacing roughly 200 families.
- Sinkhole loss coverage and catastrophic ground cover collapse coverage are different under Florida law.
- Florida’s definition of catastrophic ground cover collapse requires four specific conditions.
- Broader sinkhole coverage may be available for an additional premium and may require an inspection.
- Homeowners and renters should review their actual policies rather than assuming all sinkhole-related damage is covered.
Frequently Asked Questions About Sinkhole Insurance in Florida
Does Florida homeowners insurance automatically cover sinkholes?
Not necessarily. Florida law requires certain property insurers to provide catastrophic ground cover collapse coverage. Broader sinkhole loss coverage is different and may need to be purchased for an additional premium, subject to underwriting and policy terms.
What is catastrophic ground cover collapse?
Florida law defines catastrophic ground cover collapse using four requirements: abrupt ground collapse, a clearly visible depression, structural damage to the covered building and a government order condemning and vacating the structure.
Is a crack in my wall considered sinkhole damage?
Not automatically. Cracks can develop for many reasons. Florida’s insurance rules also contain specific requirements concerning structural damage and sinkhole losses. A qualified professional may need to determine the cause and extent of the damage.
Can I add sinkhole coverage to my homeowners policy?
Sinkhole coverage may be available for an additional premium. An insurer may require an inspection before issuing the coverage, and availability can depend on the property and the insurer’s underwriting requirements.
Does renters insurance cover sinkholes?
Coverage depends on the policy. Florida’s Department of Financial Services notes that renters policies may include catastrophic ground cover collapse among covered causes of loss, while broader sinkhole coverage may be available for an additional premium.
Would insurance pay for a hotel if I had to evacuate?
Potential coverage depends on why the property became uninhabitable and the terms of the applicable policy. Additional living expense or loss-of-use coverage may apply after certain covered losses, subject to limits and policy provisions.
Are sinkholes common in Florida?
Sinkholes are a recognized geological risk in Florida because much of the state sits above limestone and other soluble rock. The Florida Department of Financial Services provides specific consumer guidance about sinkholes and catastrophic ground cover collapse.
What should I do if I think my property has a sinkhole?
Prioritize safety. If necessary, leave the property and contact local authorities. The Florida Department of Financial Services also recommends notifying your insurance company or agent promptly and contacting the appropriate local building inspection department.
A Local Reminder to Know What Your Policy Actually Covers
When a story like the Rialto Apartments evacuation happens right around the corner, insurance terminology suddenly becomes much less theoretical.
The important lesson is not that every Orlando homeowner should expect a sinkhole. It is that Florida property insurance contains distinctions that can have significant consequences when a loss occurs.
Catastrophic ground cover collapse and sinkhole loss are not interchangeable insurance terms.
A homeowners policy can contain catastrophic ground cover collapse coverage without providing the broader sinkhole coverage a homeowner assumes is included.
The time to find out which coverage you have is before you need to use it.
If you would like us to review your current coverage or compare available Florida homeowners insurance options, request a quote online or Call or Text (407)781-1600.
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Last updated: September 24, 2026