Sink Holes

Morgan & Morgan's Insurance Litigation Group specializes in Sinkhole claims.

Sometimes the insurance company denies that a sinkhole exists. Florida law requires that certified individuals conduct specific tests on behalf of the insurer in order to deny a claim. Notably, the insurance company selects the company who performs the test, which may result in the denial of a claim.

The second type of sinkhole claim is where the insurance company agrees that a sinkhole exists, but there is a disagreement about how to fix the sinkhole. The insurer will often recommend that concrete be poured into the sinkhole. This process is called "grouting," and there are valid questions as to whether this process actually provides a definite fix for the problem.

If you believe that you have sinkhole damage, contact your homeowner's insurance company to make a claim. The insurance company has an obligation under the homeowner's insurance policy and Florida law to perform a proper investigation of your claim. Once you have received the report or letter from the insurance company with the results of the investigation, it is important to know your rights in relation to the insurance policy and the law.

If you have any questions about the letter or report that you have received from the insurance company regarding your Sinkhole claim, contact the Insurance Litigation Group at Morgan & Morgan for a free consultation.

The bulk of Florida is a thin layer of clay and sand on top of limestone and caverns. Most of the time, pressure from the water table below equalizes pressure from water, buildings, and roads on the ground above, and the caverns stand.

Sinkholes are a natural, common occurrence in North and Central Florida. Limestone in Florida is porous, allowing acidic rain water to make its way through the ground, which over time dissolves the limestone. The process of water slowly dissolving the limestone has created extensive underground cavities and drainage systems in much of the limestone throughout the state. Collapse of the surface ground into the underground cavities produces sinkholes. Abruptly collapsing sinkholes have become more common over the past 25 years, primarily due to activities of humans such as withdrawal of groundwater, diversion of surface water, or construction of ponds. While most people think of sinkholes as being blatantly huge pits that can be seen by a news helicopter, most are only three to four feet across and four to five feet deep. Even so, a relatively small crater can cause substantial structural damage to a building on top of the sinkhole.

Sinkholes only represent a small percentage of the claims that are made with an insurance company. Homeowners' insurance policies include sinkholes because Florida law requires that homeowners' coverage provide that protection to you. It is important to understand that while most types of settlements other than Sinkhole damage are usually not covered under the insurance policy, there are a few exceptions. The Insurance Litigation attorneys at Morgan & Morgan can determine if those exceptions may apply to your loss.

Is your home affected by a sinkhole?

Below is a list of signs that your home may be affected by a sinkhole:

• Previously hidden tree roots are exposed.
• Doors and windows fail to close properly.
• Areas of your property become depressed.
• Well water becomes muddy or turbid.
• Structural failure, including cracks in walls, floors, or pavement, becomes evident.
• Small ponds of rainfall appear where water has not collected before.
• Fence posts start sagging, or trees begin to slant.
• Exterior footers are exposed, or soil separates from floor slabs.
• The ground begins to crack, and vegetation becomes dry and wilted.

Some causes of settlement are called "subsidence" and may be the type of settlement that would be excluded from the insurance policy. Subsidence, the formation of depressions on the ground surface, is common during periods of high rainfall, especially after a dry period. Subsidence can be caused by variables unrelated to Sinkhole formation. Some of the causes of this type of settlement may include:

• The decay of land clearing debris buried under a home or structure when built.
• The decay of tree stumps or large roots.
• Leaking water pipes or fittings.
• Cracked or leaking swimming pools.
• Cracked storm water piping that carries away soil with the storm water runoff.
• Poor compaction of soil around utility lines.
• Water runoff from roofs, gutters, or pavement.

Sinkhole Coverage

The State of Florida requires insurers to offer sinkhole coverage as part of all homeowner policies.

An insurer cannot refuse to renew your policy for a sinkhole damage claim, but if the claim exceeds the limits of coverage, the insurer can refuse to sell you a new policy. What this means is that if your house is insured for $100,000, and you make a claim for $50,000 in sinkhole damage, the insurer must renew your policy. However, if your damages add up to $100,000, it doesn't have to sell you a new policy.

In some counties, insurance companies are refusing to sell homeowner's insurance policies for any home within one mile of a sinkhole, and some even use a five-mile restriction.

Sellers must disclose past damage from sinkholes, but there is no realistic way to predict if the home will ever have one. A potential buyer could spend thousands on drilling and testing, but the presence of underground caverns doesn't necessarily mean sinkholes will ever form. Structural damage caused by sinkholes must be disclosed by the seller, which can have a negative impact on the home's value.

As you can see, there are many issues that arise if a sinkhole is believed to be on your property or under your home. If you have any questions as to the denial of a Sinkhole claim, or if the insurance company has found the presence of a sinkhole, please contact the sinkhole lawyers at Morgan & Morgan.

In cases where the homeowner files suit against his own insurance company, under Florida law the insurance company pays some or all of our attorney's fees and costs if we prevail against the insurance company.

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