The answer to that question would probably be a definite “yes” if you live in Florida—the sinkhole capital of the United States—and “maybe” if you live in Texas, Pennsylvania, Alabama, Missouri, Kentucky or Tennessee. Sinkholes are especially common in these six states. Sinkholes” are depressions in the surface of the ground caused by an accumulation … Continue Reading
Previously, Florida’s Second District Court of Appeal found that homeowners who had their sinkhole claim denied by their insurance company, but who ultimately prevailed at a jury trial could not be paid their $168,000.00 judgment until they entered a contract to repair their home.1 The court reasoned that because the policy and Florida sinkhole statutes … Continue Reading
Under a new law that takes effect July 1, 2016, insurers may offer a new type of personal lines residential sinkhole coverage. Florida Governor Rick Scott signed CS/CS/SB 1274 into law, which created Section 627.7151, Florida Statutes, allowing insurance companies, at their option, to provide limited sinkhole coverage for a “sinkhole loss” to homeowners—which is … Continue Reading
Suffering a sinkhole loss is already difficult enough, but for those homeowners with a claim being handled by FIGA, the process can often become even more complicated. This can occur when the terms of the insurance contract issued by the original, now insolvent, insurance carrier arguably conflict with FIGA’s duties and obligations under the Florida … Continue Reading
A while back, my colleague, Shane Smith, wrote about a case, Herrera v. Tower Hill Preferred Insurance Company,1 where Florida’s Second District Court of Appeal considered – and then rejected – Tower Hill’s claim that its insured had violated the policy’s “Concealment or Fraud” and “Duties After Loss” provision by not disclosing their sinkhole expert’s … Continue Reading
Florida’s Second District Court of Appeal recently reversed final judgment against a homeowner and remanded for a retrial after a jury was instructed that the insured had to prove the damages to his home were caused by a sinkhole. The case, Mejia v. Citizens Property Insurance Corporation,1 stemmed from an insurance claim brought by a … Continue Reading
Gene Veno of the American Association of Public Adjusters recently sent out an alert about a neighborhood suffering severe sinkhole damage. We often see these reports for Florida and Tennessee – but Harrisburg, Pennsylvania is now suffering from sinkhole losses. Similar to the Sunshine State, Pennsylvania is one of the top states at risk for … Continue Reading
In my last blog post, I discussed how the Florida House of Representatives were preparing to vote on House Bill 129 – or the “Citizens Sinkhole Repair Bill.” As predicted, a final vote took place on April 11, 2014. The result? The Citizens Sinkhole Repair Bill cleared the House by an 85-25 vote.… Continue Reading
After yesterday’s legislative session in Tallahassee, it appears the Florida House of Representatives’ final vote on House Bill 129 – commonly referred to as the “Citizens Sinkhole Repair Bill” – may take place as soon as this Friday, April 11th. The proposed legislation seeks to change certain aspects of Florida’s sinkhole law, though only for … Continue Reading
If you thought the notion of taking a “time-out” only applied to sports, think again. In Florida, properly invoking neutral evaluation under Florida Statute § 627.7074 is similar to requesting a time-out because it stays, or pauses, sinkhole-related proceedings. Though the nonbinding, informal procedure is intended to help parties resolve disputed sinkhole insurance claims, unless … Continue Reading
Earlier this week a devastating sinkhole opened up in Bowling Green, Kentucky, directly under National Corvette Museum, Luckily, no one was reported injured and no fatalities were claimed.… Continue Reading
An insurance contract is simply an agreement. The policy itself contains the terms of the agreement and acceptance of a premium payment binds this agreement. Citizens Property Insurance Corporation is Florida’s largest property insurance provider and as I discussed recently, is exposed to bad faith, according to the First District Court Appeal.… Continue Reading
On November 14, 2013, a sinkhole forced more families out of their homes in Dunedin, Florida. This hits especially close to home because I grew up in Dunedin and attended high school about one mile away from the affected neighborhood.… Continue Reading
This week another massive sinkhole opened up in Dunedin, Florida. This time, the insureds were not killed, but once again the sinkhole activity has been rapid and extremely dangerous. Two homes will be demolished by the end of the weekend and another four have been evacuated. Here is some of the footage captured of the … Continue Reading
In preparing for an upcoming trial, I deposed the carrier’s geotechnical engineer who recommended a compaction grouting program to remediate my client’s home that suffered a sinkhole loss. In his report, he noted very loose to loose shallow soil zones.… Continue Reading
If you live in Florida, you have seen the media reports over the past year and half exposing Citizens Property Insurance Corporation’s many failures. Citizens’ approach to Sinkhole Loss claims is no different. Florida law requires all insurance carriers, including Citizens, to repair below ground damages and immediately tender the actual value of the above … Continue Reading
On June 27, 2013 the Florida Supreme issued an important decision addressing the issue, “whether, under Florida Statute § 627.736, an insurer can require an insured to attend an examination under oath as a condition precedent to recovery of personal injury protection “PIP” benefits? In Nunez v. Geico General Insurance Company,1 the Florida Supreme Court … Continue Reading
In prior posts, I explained that in the event of a sinkhole loss, insurance carriers are required to stabilize the land and building, repair the foundation, and pay to repair the above ground damages resulting from the sinkhole loss. After explaining the different methods for subsurface repair, many of my clients become concerned because the … Continue Reading
In Florida, when a policyholder reports a sinkhole loss, carriers are required to conduct a subsidence investigation. The purpose of this law is to protect Floridians’ lives and property. In this situation, policyholders are concerned damages to their properties are getting worse, and it is common for them to fear the worst, a catastrophic event.… Continue Reading
Many insurance carriers attempt to force their insureds into subsurface repair contracts based on the carrier’s recommendations. In fact, carriers will refuse to provide coverage for a valid sinkhole claim unless the property owner repairs the property exactly the way the carrier recommends. Interestingly, the carrier will not agree to be liable if the recommended … Continue Reading
Last week, I highlighted a recent trial court order in Shelton v. Liberty Mutual Fire Insurance Company,1 where a federal trial judge ruled the plain meaning of the term “structural damage” is applied to a sinkhole claim, despite the May 17, 2011 amendments, unless the policy defines the term differently. This holding is a true victory for … Continue Reading
Florida’s sinkhole problem is well documented; however, a common problem related to sinkhole claims is not discussed enough. Many carriers improperly nonrenew insurance policies after an insured reports a sinkhole claim. Just today, for example, Olympus Insurance Company nonrenewed a client’s policy, despite confirming a sinkhole loss just one month ago. My client’s neighbor reported … Continue Reading
Last week, I posted about a carrier’s right to “elect to repair” an insured’s sinkhole affected property. Why do carriers rarely elect this option? It may have something to do with the fact that many engineers testify that they cannot certify sinkhole conditions at an affected property have actually been remediated by the repair protocol; … Continue Reading
Many policyholders who suffer a sinkhole loss do not know their insurance carrier has the right to repair their property. In other words, the carrier can elect to retain the necessary contractors to perform subsurface and above-ground repairs. The policyholder wins under these circumstances because if the repair method fails, the carrier must pay for … Continue Reading
