Publication Date
April 2018
Abstract
The entirety of peninsular Florida is underlain by relatively young limestone bedrock and overlain by sands that easily ravel into voids and cavities within the limestone. Surficial expressions of karstic activity are immediately evident in its thousands of circular lakes, wetlands, and cypress heads. Additionally, Florida has had literally tens of thousands of subsidence-related insurance claims over the past two decades, far surpassing the entire history of property insurance before that. The peak came around 2011, the year that new legislation made it much harder for a homeowner to prove a claim. The issue was essentially ‘what is the definition of structural damage?’ as defined by Florida Statute related to property insurance and specifically sinkhole coverage. Prior to 2011, a clear definition of structural damage did not exist, consequently the attorneys maintained that the plain definition (structural damage is damage to a structure) held, in spite of many geotechnical and structural reports that defined structural damage as an engineer would deem – loss of load carrying capacity. Consequently, cosmetic damage that was not remotely “structural” was considered damage by the courts, and legal cases blossomed out of control. In 2011, Florida Statutes redefined “structural damage” using five separate criteria. These criteria include, for example “interior floor displacement or deflection in excess of acceptable variances as defined in ACI 117-90 or the Florida Building Code, which results in settlement-related damage to the interior such that the interior building structure or members become unfit for service or represents a safety hazard as defined within the Florida Building Code…”. Other criteria have to do with foundation displacement; leaning or listing of the building; or ground movement that results in portions or all of the building likely to imminently collapse. Of course, there are additional criteria and exceptions. Overall, these statutory changes have resulted in significantly fewer sinkhole claims, in spite of the occasional sinkhole that enraptures the news media (for example, the March 2013 death of Mr. Jeffrey Bush as a result of sinkhole collapse below his bedroom). So while all property insurance companies in Florida still cover “catastrophic ground cover collapse” for all homes, there are far fewer of these claims to deal with as the law has become more sophisticated.
DOI
https://doi.org/10.5038/9780991000982.1071
Litigation and the Complexities of Sinkhole Insurance Claims in Florida
The entirety of peninsular Florida is underlain by relatively young limestone bedrock and overlain by sands that easily ravel into voids and cavities within the limestone. Surficial expressions of karstic activity are immediately evident in its thousands of circular lakes, wetlands, and cypress heads. Additionally, Florida has had literally tens of thousands of subsidence-related insurance claims over the past two decades, far surpassing the entire history of property insurance before that. The peak came around 2011, the year that new legislation made it much harder for a homeowner to prove a claim. The issue was essentially ‘what is the definition of structural damage?’ as defined by Florida Statute related to property insurance and specifically sinkhole coverage. Prior to 2011, a clear definition of structural damage did not exist, consequently the attorneys maintained that the plain definition (structural damage is damage to a structure) held, in spite of many geotechnical and structural reports that defined structural damage as an engineer would deem – loss of load carrying capacity. Consequently, cosmetic damage that was not remotely “structural” was considered damage by the courts, and legal cases blossomed out of control. In 2011, Florida Statutes redefined “structural damage” using five separate criteria. These criteria include, for example “interior floor displacement or deflection in excess of acceptable variances as defined in ACI 117-90 or the Florida Building Code, which results in settlement-related damage to the interior such that the interior building structure or members become unfit for service or represents a safety hazard as defined within the Florida Building Code…”. Other criteria have to do with foundation displacement; leaning or listing of the building; or ground movement that results in portions or all of the building likely to imminently collapse. Of course, there are additional criteria and exceptions. Overall, these statutory changes have resulted in significantly fewer sinkhole claims, in spite of the occasional sinkhole that enraptures the news media (for example, the March 2013 death of Mr. Jeffrey Bush as a result of sinkhole collapse below his bedroom). So while all property insurance companies in Florida still cover “catastrophic ground cover collapse” for all homes, there are far fewer of these claims to deal with as the law has become more sophisticated.
