Florida sinkhole Damage Insurance Claims
At Kennon Law, we understand the profound impact that sinkhole damage can have on your property and peace of mind. Our dedicated team of Florida sinkhole damage lawyers is here to guide you through the process of exercising your rights and filling a sinkhole claim with your insurance company.
Here’s everything you need to know about sinkhole coverage in the Sunshine State.
Understanding Sinkholes
A sinkhole is a depression or opening in the ground that lacks natural external surface drainage.
Sinkholes are common in Florida due to the state’s geological composition, which primarily consists of limestone and other carbonate rock. Groundwater can dissolve these minerals, leading to the formation of underground voids. When the surface layer can no longer support its own weight or that of nearby structures, it collapses, creating a sinkhole.
Human activity can also cause or worsen sinkhole activity. For example, excessive groundwater pumping or construction projects may destabilize the ground, increasing the likelihood of sinkhole formation.
As a property owner, there are three main types of sinkholes you need to know about:
- Collapse Sinkholes: These occur suddenly and involve a catastrophic ground cover collapse, often causing significant damage
- Subsidence Sinkholes: These develop gradually as the ground slowly sinks over time
- Clay Shrinkage: This type of sinkhole involves the contraction of clay soils during dry conditions, which can lead to ground depressions
Sinkholes can cause extensive structural damage to your home and roads.
A catastrophic ground cover collapse can also threaten Florida’s water supplies, especially for those who drink unfiltered water from a well system. Even a relatively small sinkhole can cause structural damage to your home or lead to an abrupt collapse of part or all of the structure.
What Does Sinkhole Insurance Cover?
It’s important to distinguish between sinkhole insurance and catastrophic ground cover collapse coverage.
Florida law requires property insurance policies to include coverage for catastrophic ground cover collapses. However, insurance companies aren’t required to cover non-catastrophic events as part of a standard policy.
For example, if a sinkhole damages a detached garage on your property but your home is safe and unaffected, your CGCC policy won’t apply. The good news is you can purchase additional coverage to protect against a broader range of sinkhole-related damages.
Make it a point to review your policy and identify any limits or exclusions. Insurers are notorious for including loopholes and exclusions in coverage, which could make it difficult for you to obtain fair compensation.
Sinkhole Insurance Law in Florida
Florida law mandates that property insurance policies provide coverage for damage resulting from catastrophic ground cover collapses. However, the definition of such events was narrowed in 2011. Now, a collapse is only covered if the incident meets certain criteria, which include the following:
- The ground cover collapsed abruptly
- A depression in the ground cover is visible with the naked eye
- Your home suffers structural damage
- Your home is ordered vacated by a government agency
As the homeowner, you’ll likely encounter pushback from your insurer unless the incident undeniably satisfies these four criteria. Even if you’ve purchased additional coverage, it doesn’t mean your insurer will pay you fairly for the damage to your property. Depending on the circumstances, it may even deny the claim altogether.
Fortunately, you can do your part to hold insurance companies accountable by teaming up with a law firm with experience managing cases involving Florida sinkholes. An experienced sinkhole attorney can negotiate with insurance providers on your behalf and fight to recover fair payment for your claim.
Navigating the Claims Process
Filing a Florida sinkhole claim can be daunting and time-consuming, especially if you’re already dealing with extensive structural damage. Here are some of the steps you’ll need to take:
Notify Your Insurance Company
First, you must notify your insurer of suspected sinkhole activity and initiate the claims process. If you determine that the source of the issue is indeed a sinkhole, you’ll need to complete any relevant claims forms and submit supporting documentation, such as photographs or videos.
Schedule an Inspection
Your insurer will send an adjuster to assess the damage and gather information about the sinkholes on your property.
The adjuster will provide a damage estimate, which the insurance company will use to determine how much compensation you’re eligible for. The adjuster will also help identify the type of sinkhole damage and whether it’s included in your insurance coverage.
Schedule Professional Testing
Your insurer may hire a geologist or engineer to conduct tests to confirm the presence of a sinkhole. Testing is common in most sinkhole claims, but it may not be necessary if the presence of sinkholes is blatantly obvious or there’s a history of similar incidents in your area.
Wait Out the Evaluation Period
It may take several days or even weeks for your insurer to receive the adjuster’s test results and review their findings. Unfortunately, there isn’t much you can do during this period other than wait.
If you have to vacate your property due to structural damage or concerns about more sinkholes, make sure to save any receipts associated with your alternative living expenses. If your policy provides coverage for the incident, you can submit the receipts to your insurer for reimbursement.
Review the Claim Decision
Eventually, you’ll receive a letter from your insurer either approving or denying your claim based on the adjuster’s findings.
If your claim is approved, identify how much your insurer is willing to pay you for the damage. Obtain remediation and repair estimates and compare those quotes to the valuation your insurance company has provided. If it isn’t going to offer enough to fix the damage, you can negotiate for more.
You can file an appeal of claims denials as well. An attorney well-versed in Central Florida sinkhole claims can help you initiate an appeal or negotiate for additional compensation for your sinkhole loss.
Common Challenges in Sinkhole Claims
When filing a Florida sinkhole claim, you should be prepared to encounter the following barriers:
Underpayment of Claims
One of the most common tactics insurance companies use is underpayment. Insurers know that property owners are eager to receive compensation when their buildings or other structures become damaged and are therefore often willing to settle for less. Don’t fall into this trap.
A lawyer can help you evaluate the insurance company’s offer after a sinkhole damages your property. Always consult a qualified attorney before you sign any settlement offers or accept payment from your insurance company. You should also request a quote to repair your property so you can compare that estimate to the insurance company’s offer.
Incomplete Testing
Some insurance companies might forgo standard testing procedures required under Florida law. Failure to properly test for sinkhole activity can constitute a breach of policy and lead to denials. As the property owner, you have the right to request any testing that’s addressed in your policy documents.
Policy Limitations
There are several laws in place to protect Florida homeowners against sinkholes, such as the rule requiring insurers to provide CGCC coverage. However, those laws don’t provide blanket protection. Your insurance company can still exploit policy exclusions or limitations to deny full compensation under certain circumstances.
Carefully review your policy so you’ll know what’s covered and what isn’t. If you want to protect a specific building on your property, talk to your policy provider and add the structure to your own sinkhole insurance coverage. Make sure to obtain enough coverage for the insured structure to repair or replace it in the event of major damage.
Benefits of Hiring a Qualified Attorney
An experienced Florida sinkhole claim lawyer from Kennon Law can protect your rights against crafty insurance adjusters and ensure that proper testing is performed. Your lawyer can also negotiate with your insurance company on your behalf and help you understand the science of ground collapses and the claims process.
Our attorneys have a background working in insurance defense and acting as in-house counsel. This experience allows us to quickly interpret your insurance policy and coverage limits. If we believe you have a viable case, we’ll build a strong argument on your behalf and have your property examined by independent experts.
A Florida sinkhole claim lawyer from Kennon Law can provide a free consultation to assist with your sinkhole loss. Contact us today to discuss how to pursue proper compensation from your insurance company.
Frequently Asked Questions
What Is the Average Cost of Sinkhole Insurance in Florida?
The cost of sinkhole coverage can vary based on the value of your home, where it’s located, and the type of construction. CGCC coverage is included as part of your standard homeowners insurance policy at no extra charge. However, adding sinkhole insurance can cost anywhere from a few hundred to a few thousand dollars per year.
Is Sinkhole Damage Covered by Insurance?
Standard policies provide Florida residents with protection against catastrophic ground cover collapse, but they typically don’t cover less severe sinkhole damage. You can purchase additional coverage if you’re worried about sinkhole activity in your area.
What Does a Sinkhole Insurance Claim Attorney Do?
Attorneys who handle sinkhole claims can help with the entire filing process. Your lawyer can review your policy, ensure that proper testing is carried out, and negotiate with your insurance company for fair compensation. If your insurer refuses to negotiate in good faith, your attorney can take them to court to secure fair compensation.
What Are the Signs of Sinkhole Damage to Look for Before Filing a Claim?
Indications of sinkhole damage may include cracks in interior walls or floors, depressions or soft spots in the lawn, doors or windows that become difficult to open or close, cracks in exterior stucco or brickwork, and unusual foundation settling. If you notice any of these warning signs, consider filing a claim.
What Documentation Is Needed to File a Sinkhole Insurance Claim?
You’ll need to provide your insurer with a detailed description and photographs of the sinkhole damage for your claim to succeed. You should also submit any records of previous repairs or inspections. If you hired an independent company to perform sinkhole testing, submit those results as well.
Can I Dispute My Insurance Company’s Finding Regarding Sinkhole Damage?
Yes. In fact, it’s recommended if your insurer is attempting to deny or underpay your claim. A skilled sinkhole attorney can help you complete this process and hold your insurer accountable for living up to the terms of your policy. Among other things, they’ll assist with scheduling independent evaluations and negotiating on your behalf.
What Are My Options if My Insurance Company Undervalues the Sinkhole Damage?
A sinkhole claim lawyer can help you file an appeal and negotiate with your insurance company for adequate payment. If your insurer refuses to negotiate in good faith, your sinkhole claim attorney can take your case to trial and seek a verdict in your favor.
What Do Florida Statutes Require When a Sinkhole Claim Is Paid by the Insurance Company?
Florida law mandates that insurers provide coverage for catastrophic ground cover collapse. However, standard sinkhole coverage is optional and must be purchased separately. When an insurance company pays a claim, state law requires that a licensed company perform the repairs.
How Do Sinkhole Insurance Claims Differ From Other Natural Disaster Claims?
A licensed company must perform sinkhole repairs and remediation. Florida may also require specialized geological testing to confirm the cause of damage and the type and severity of the sinkhole. Specialty testing typically isn’t necessary for other natural disasters like hurricanes, which are already well-documented.
What Are Common Mistakes Homeowners Make When Filing Sinkhole Claims?
One of the most common mistakes property owners make is submitting incomplete claim forms. You must fill out all claim documents thoroughly and provide supporting evidence, including photographs and other documentation your insurance company requires.
Another frequent mistake is filing an appeal or negotiating with insurance providers without an attorney’s assistance. Your insurer has an entire legal team dedicated to protecting its interests. You need someone who will do the same for you.
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