• 19
  • August
    2010

This week on TBO.com, there were several articles regarding the number of sinkhole claims being submitted with the insurance companies,  who are suffering in large part to financial conditions in the past two years.  One article suggested that many of the sinkhole claims are not valid, or that the extent of the damage is such that coverage should not be provided.

Overall, I find the tone of the article misleading.  This issue is not going to be decided by both sides producing evidence of whether sinkhole activity or sinkhole claims are "real," as much as it will be whether the law and the policy provisions are being followed.  I do think there are a few truths to consider, which both sides of the sinkhole debate cannot dispute.

1. Sinkholes are Bad

First, sinkhole activity at a home, even if it does not cause dramatic damage, is a very bad thing for the policyholder.  Imagine trying to sell a home, with the limitation that you share that the home has sinkhole activity.  The house is worthless, if such sinkhole activity is not repaired.  The recent change in the law that pulled sinkhole activity, unless expressly requested for the policyholder, was unfair.  Most people do not rifle through their policy notices to make sure they have not had material changes in their coverage, and a lot of people are now discovering this change.  Many times, homeowners are not discovering this until after they file claims, and even after sinkhole activity is found.  "Yes, you have a sinkhole, but didn't you know we pulled it?"

2. One Sinkhole Means Sinkholes Everywhere

Second, the presence of sinkhole activity in a neighborhood is an important factor to consider.  At the same time, if every house in Florida that was in the same neighborhood as a sinkhole house, then every house in Florida is a sinkhole house.  And, this simply isn't true.  When we represent policyholders, we look at these issues objectively.  Many people seek to scare people, but we do not do that.  Instead, the condition of the home and its specific geological conditions are the real focus.  Experts on both sides of the isle, as much as they try to spin it otherwise, agree with this.  

3. The Vast Majority of Sinkhole Claims are Resolved

 Both sides of this issue try and point to their worst examples of when sinkholes are disputed.  But, the vast majority of sinkhole claims between our clients and their insurers are resolved without incident.  Certainly, there are engineering firms who wouldn't find a sinkhole in Florida unless their trucks fell into them.  Additionally, there are experts who call us to work with us that find sinkholes at every home.  In the end, however, we must resolve these differences without permitting the worse cases to drive the issue, because they are the minority of claims.  Most of the time, if a claim if filed and they find sinkhole activity, the carriers and the policyholders resolve it.  If it is a denied sinkhole claim, many people are happy to learn they do not have an issue.  Spending time parading around houses with limited damage, calling these "fraudulent," fails to serve the best interests of most Florida homeowners.  If a case is a fraud, and this is obvious, then litigate it, but do not do this in the press. If you have a situation requiring legal representation for a sinkhole damage claim, contact Corless Zinober FL personal injury lawyers at 866-969-2889.