What Florida law considers a sinkhole loss
Fla. Stat. 627.706 defines "sinkhole loss" as structural damage to the covered building, including the foundation, caused by sinkhole activity. Specifically requires:
- Structural damage to the covered building
- Damage caused by sinkhole activity (subsidence, collapse, soil movement related to groundwater dissolution of subsurface limestone)
- Damage confirmed by a licensed professional geologist or engineer
Coverage availability
Sinkhole coverage is typically optional in Florida policies (separate from "catastrophic ground cover collapse" which is mandatory under Fla. Stat. 627.706). Many Florida homeowners don't have full sinkhole coverage and don't realize it until they need it.
Verify on your declarations page or endorsement schedule.
Initial claim handling
- Notice of loss: notify the carrier of the suspected sinkhole
- Carrier investigation: the carrier engages a licensed professional geologist or engineer
- Investigation report: the professional issues a report confirming or denying sinkhole activity
- Pay or deny: based on the report
Disputed investigation
If the report denies sinkhole activity:
- Neutral evaluator: Fla. Stat. 627.7074 allows the policyholder to request a neutral evaluator (a professional engineer or geologist retained jointly or by DFS)
- The neutral evaluator's report is admissible in any subsequent action and carries presumptive weight
Statutory timelines
- Notice to carrier: 1 year from date of loss (627.70132)
- Supplemental: 18 months from date of loss
- Statute of limitations: 2 years from date of loss or knowledge of loss for sinkhole actions (shorter than typical contract SOL)
Typical scope
Sinkhole repair scope often includes:
- Grouting or underpinning of the foundation
- Structural stabilization
- Interior finishes affected by movement (cracks, separated walls, non-closing doors)
- Exterior siding, brick, or stucco affected
- Grading and site work
Repair methods and costs vary widely: $40K to $300K+ depending on extent.
Common disputes
- Causation: is it sinkhole activity or settlement/heave/other subsurface movement?
- Scope: what repair method is appropriate?
- Engineer selection: carrier vs. policyholder engineer
- Matching: flooring, exterior finishes, interior drywall
How Ocean Point handles sinkhole claims
Sinkhole and structural claims are handled by licensed Florida public adjusters on the Ocean Point team. The approach:
- Review the carrier's investigation report
- Engage an independent geotechnical engineer
- Document structural damage
- Invoke neutral evaluator if warranted
- Prepare repair scope and Xactimate estimate
- Negotiate or escalate