Insurance
Under Florida statute 627.70 every insurer authorized to transact property insurance in the state of Florida shall make available coverage for insurable sinkhole losses on any structure, including contents of personal property contained therein, to the extent provided in the form to which the sinkhole coverage attaches.
There are minimum standards for investigation of sinkhole claims by insurers. Upon receipt of a claim for a sinkhole loss, and the insurer discovers damage that is consistent with sinkhole activity or if the structure is located in close proximity to a structure in which sinkhole damage has been verified, then prior to denying a claim, the insurer must obtain written certification from an individual qualified to determine the existence of sinkhole activity, and that the analysis was of sufficient scope to eliminate sinkhole activity as the cause of damage within a reasonable professional probability.
No insurer shall non-renew any policy of property insurance on the basis of filing of claims for partial loss caused by sinkhole damage or clay shrinkage as long as the total of such payments does not exceed the current policy limits of coverage for property damage, and provided the insured has repaired the structure in accordance with the engineering recommendations upon which any payment or policy proceeds were based. ** It should be noted that according to the insurance commissioner’s office each insurance company has the right to cancel or non-renew up to 5% of their policies, but cannot exceed 10% in any one county.
