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Sinkhole Claims: Look for the Insurance Spin on Fraud Case

The Insurance Lobby loves to talk about sinkhole fraud, because it allows the writing of fiction that sinkholes do not actually exist in Florida. Right. If there were never any sinkholes in Florida, why did you ever right the coverage for them - do you also sell "snipe" insurance?).

http://www.abcactionnews.com/dpp/news/region_citrus_hernando/local-engineer-arrested-in-sinkhole-fraud-scheme

In this story, we will be told by an insurance lobbyist that it "proves" that sinkhole repair companies are all frauds, and all investigations confirming sinkhole activity are a "hoax" (ask SDII Global, who had a seminar by the same title).

But this, like most sinkhole stories, is misleading to the consumer. There was no "sinkhole" fraud. Instead, the "fraud" was in the "permitting" of the repairs. The real story is that a contractor who did a bunch of unpermitted work hired an engineer to go backwards and file bogus permit applications. This is construction fraud, not sinkhole fraud, as the title to the article suggests.

As I have written about, and what you will read on www.sinkholedamageblog.com, you should do your homework on sinkhole repair contractors and confirm they are legitimate. Additionally, you should make sure that you retain a geotechnical engineer to properly supervise the project, which is paid for by the insurance company. Just like any other contractor, there are good, ethical contractors and otherwise.

If you need help with the selection of a qualified, sinkhole repair company either for grouting, pinning, chemical grouting, or other kind of subsidence repair method, you are free to call our office. We can refer you to contractors, with whom we have no financial relationship, who are bid for your business. TC

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