Florida Insurance Law Blog
Sinkhole Lawsuit Filed Against Homeowner's Insurer
My client noticed cracking around the exterior of then garage, and then in her living room. She was concerned that this may be a sinkhole so she contacted her homeowners insurer. The homeowners insurance company retained an engineering firm (which I have seen on hundreds of sinkhole claims) and not surprisingly, the engineering firm declared that there was no sinkhole activity.
The culprit? According to the insurance company's engineer: My client's house was simply beginning to settle - 30 years after it was built.
The amazing part of these cases is that the data from the insurer's engineering firm usually shows that there is sinkhole activity - if you know what you are looking for and are willing to interpret the data fairly and accurately. The data in this report clearly demonstrated sinkhole activity.
As a result, I filed a lawsuit against the homeowners insurer for breach of contract.
If there is one message I want to get across to policy holders, it is this: A denial letter is not the end of the inquiry, it is just the beginning! Do not be intimidated by a denial letter no matter how strong you think it is.
Don't evaluate your insurance denial on your own. Let me review it for free. And, in most of my insurance cases, if I win, the insurance company must pay my attorney's fees and costs; and if I lose, I'll work for free.