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A Florida homeowner's property suffers structural damage when the ground slowly subsides over several months. The home does not experience a sudden collapse. Which coverage situation correctly describes the insurer's obligation under §627.706?

ACatastrophic ground cover collapse coverage, which is mandatory, covers slow subsidence causing structural damage
Catastrophic ground cover collapse is mandatory but requires sudden collapse meeting all four statutory criteria; sinkhole coverage for gradual subsidence is optional and separately priced
CSinkhole coverage, which is mandatory in all FL homeowners policies, covers this loss
DNeither sinkhole nor catastrophic ground cover collapse is covered under standard homeowners; a separate earth movement policy is required

Why this is the answer

Florida §627.706 creates two distinct coverage categories. Catastrophic ground cover collapse is mandatory in all residential property policies but has a narrow trigger: (1) abrupt collapse of the ground cover, (2) a depression in the ground cover clearly visible to the naked eye, (3) structural damage to the insured building, and (4) the building is condemned and uninhabitable. Gradual sinkhole activity — even when causing serious structural damage — does not meet the mandatory coverage trigger. Sinkhole coverage (covering the broader spectrum of sinkhole activity including gradual damage) is optional and must be offered separately for an additional premium. See §627.706, Florida Statutes.

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