Yes, Tower Hill Insurance typically provides coverage for sinkhole damage in Florida, though the type of coverage and the requirements for a payout depend on how the damage is classified.

Under Florida law, Tower Hill policies generally include two distinct forms of ground movement protection:

• Sinkhole Loss: This is a standard part of Florida homeowners’ policies. It covers structural damage to the building and foundation caused by sinkhole activity. This coverage is triggered by evidence of settlement or cracking (such as foundation cracks wider than 1/4 inch) but requires a professional engineering report to verify the cause. These claims are subject to a separate deductible, typically ranging from 2% to 10% of the dwelling coverage limit.
• Catastrophic Ground Cover Collapse: This is a state-mandated protection for abrupt and dramatic events. To qualify, the collapse must be sudden, the depression must be clearly visible, and the structure must be rendered uninhabitable (condemned).

Key Limitations and Exclusions:

• Structural Threshold: Tower Hill generally excludes cosmetic or non-structural damage; the damage must meet specific structural thresholds to qualify as a covered loss.
• Common Exclusions: Coverage typically does not apply to gradual earth settlement unrelated to sinkholes, erosion from surface water, or normal wear and tear.
• Documentation: Policyholders are required to provide a licensed engineer’s report confirming that sinkhole activity is the direct cause of the damage to secure a claims settlement.