Florida Statute 627.706 | Lawyer Caselaw & Research

The 2024 Florida Statutes

Title XXXVII
INSURANCE

Chapter 627
INSURANCE RATES AND CONTRACTS

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F.S. 627.706

627.706 Sinkhole insurance; catastrophic ground cover collapse; definitions.—

(1)(a) Every insurer authorized to transact property insurance in this state must provide coverage for a catastrophic ground cover collapse.

(b) The insurer shall make available, for an appropriate additional premium, coverage for sinkhole losses on any structure, including the contents of personal property contained therein, to the extent provided in the form to which the coverage attaches. The insurer may require an inspection of the property before issuance of sinkhole loss coverage. A policy for residential property insurance may include a deductible amount applicable to sinkhole losses equal to 1 percent, 2 percent, 5 percent, or 10 percent of the policy dwelling limits, with appropriate premium discounts offered with each deductible amount.

(c) The insurer may restrict catastrophic ground cover collapse and sinkhole loss coverage to the principal building, as defined in the applicable policy.

(2) As used in ss. 627.706-627.7074, and as used in connection with any policy providing coverage for a catastrophic ground cover collapse or for sinkhole losses, the term:

(a) “Catastrophic ground cover collapse” means geological activity that results in all the following:

1. The abrupt collapse of the ground cover;

2. A depression in the ground cover clearly visible to the naked eye;

3. Structural damage to the covered building, including the foundation; and

4. The insured structure being condemned and ordered to be vacated by the governmental agency authorized by law to issue such an order for that structure.

Contents coverage applies if there is a loss resulting from a catastrophic ground cover collapse. Damage consisting merely of the settling or cracking of a foundation, structure, or building does not constitute a loss resulting from a catastrophic ground cover collapse.

(b) “Neutral evaluation” means the alternative dispute resolution provided in s. 627.7074.

(c) “Neutral evaluator” means an engineer licensed under chapter 471 who has experience and expertise in the identification of sinkhole activity as well as other potential causes of structural damage or a professional geologist. The licensed engineer or professional geologist must have completed a course of study in alternative dispute resolution designed or approved by the department for use in the neutral evaluation process, must be determined by the department to be fair and impartial, and ¹may not otherwise be ineligible for certification as provided under s. 627.7074.

(d) “Primary structural member” means a structural element designed to provide support and stability for the vertical or lateral loads of the overall structure.

(e) “Primary structural system” means an assemblage of primary structural members.

(f) “Professional engineer” means a person, as defined in s. 471.005, who has a bachelor’s degree or higher in engineering. A professional engineer must also have experience and expertise in the identification of sinkhole activity or other potential causes of structural damage.

(g) “Professional geologist” means a person, as defined in s. 492.102, who has a bachelor’s degree or higher in geology or related earth science and experience and expertise in the identification of sinkhole activity as well as other potential geologic causes of structural damage.

(h) “Sinkhole” means a landform created by subsidence of soil, sediment, or rock as underlying strata are dissolved by groundwater. A sinkhole forms by collapse into subterranean voids created by dissolution of limestone or dolostone or by subsidence as these strata are dissolved.

(i) “Sinkhole activity” means settlement or systematic weakening of the earth supporting the covered building only if the settlement or systematic weakening results from contemporaneous movement or raveling of soils, sediments, or rock materials into subterranean voids created by the effect of water on a limestone or similar rock formation.

(j) “Sinkhole loss” means structural damage to the covered building, including the foundation, caused by sinkhole activity. Contents coverage and additional living expenses apply only if there is structural damage to the covered building caused by sinkhole activity.

(k) “Structural damage” means a covered building, regardless of the date of its construction, has experienced the following:

1. 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;

2. Foundation displacement or deflection in excess of acceptable variances as defined in ACI 318-95 or the Florida Building Code, which results in settlement-related damage to the primary structural members or primary structural systems that prevents those members or systems from supporting the loads and forces they were designed to support to the extent that stresses in those primary structural members or primary structural systems exceeds one and one-third the nominal strength allowed under the Florida Building Code for new buildings of similar structure, purpose, or location;

3. Damage that results in listing, leaning, or buckling of the exterior load-bearing walls or other vertical primary structural members to such an extent that a plumb line passing through the center of gravity does not fall inside the middle one-third of the base as defined within the Florida Building Code;

4. Damage that results in the building, or any portion of the building containing primary structural members or primary structural systems, being significantly likely to imminently collapse because of the movement or instability of the ground within the influence zone of the supporting ground within the sheer plane necessary for the purpose of supporting such building as defined within the Florida Building Code; or

5. Damage occurring on or after October 15, 2005, that qualifies as “substantial structural damage” as defined in the Florida Building Code.

(3) Insurers offering policies that exclude coverage for sinkhole losses must inform policyholders in bold type of not less than 14 points as follows: “YOUR POLICY PROVIDES COVERAGE FOR A CATASTROPHIC GROUND COVER COLLAPSE THAT RESULTS IN THE PROPERTY BEING CONDEMNED AND UNINHABITABLE. OTHERWISE, YOUR POLICY DOES NOT PROVIDE COVERAGE FOR SINKHOLE LOSSES. YOU MAY PURCHASE ADDITIONAL COVERAGE FOR SINKHOLE LOSSES FOR AN ADDITIONAL PREMIUM.”

(4) An insurer offering sinkhole coverage to policyholders before or after the adoption of s. 30, chapter 2007-1, Laws of Florida, may nonrenew the policies of policyholders maintaining sinkhole coverage at the option of the insurer, and provide an offer of coverage that includes catastrophic ground cover collapse and excludes sinkhole coverage. Insurers acting in accordance with this subsection are subject to the following requirements:

(a) Policyholders must be notified that a nonrenewal is for purposes of removing sinkhole coverage, and that the policyholder is being offered a policy that provides coverage for catastrophic ground cover collapse.

(b) Policyholders must be provided an actuarially reasonable premium credit or discount for the removal of sinkhole coverage and provision of only catastrophic ground cover collapse.

(c) Subject to the provisions of this subsection and the insurer’s approved underwriting or insurability guidelines, the insurer shall provide each policyholder with the opportunity to purchase an endorsement to his or her policy providing sinkhole coverage and may require an inspection of the property before issuance of a sinkhole coverage endorsement.

(d) Section 624.4305 does not apply to nonrenewal notices issued pursuant to this subsection.

(5) Any claim, including, but not limited to, initial, supplemental, and reopened claims under an insurance policy that provides sinkhole coverage is barred unless notice of the claim was given to the insurer in accordance with the terms of the policy within 2 years after the policyholder knew or reasonably should have known about the sinkhole loss.

History.—s. 2, ch. 81-280; s. 809(2nd), ch. 82-243; s. 79, ch. 82-386; s. 114, ch. 92-318; s. 8, ch. 2000-333; s. 1189, ch. 2003-261; s. 17, ch. 2005-111; s. 25, ch. 2006-12; s. 30, ch. 2007-1; s. 1, ch. 2009-178; s. 3, ch. 2011-11; s. 22, ch. 2011-39; s. 6, ch. 2014-86; s. 29, ch. 2014-123.

¹Note.—As amended by s. 6, ch. 2014-86. The amendment by s. 29, ch. 2014-123, uses the word “must” instead of the word “may.”

F.S. 627.706 on Google Scholar

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Amendments to 627.706

Arrestable Offenses / Crimes under Fla. Stat. 627.706

Level: Degree
Misdemeanor/Felony: First/Second/Third

Current data shows no reason an arrest or criminal charge should have occurred directly under Florida Statute 627.706.

Annotations, Discussions, Cases:

Cases Citing Statute 627.706

Total Results: 19

CITIZENS PROPERTY INSURANCE CORPORATION v. ARIS BARBERAN AND DELAIDA BARBERAN

Court: District Court of Appeal of Florida | Date Filed: 2024-04-03

Snippet: damage. See ch. 11-39, § 22, Laws of Fla.; cf. § 627.706(2)(k) Fla. Stat. (2012). Citizens maintains that

SANDRA PEREZ CARBONELL v. CITIZENS PROPERTY INSURANCE CORPORATION

Court: District Court of Appeal of Florida | Date Filed: 2024-01-05

Snippet: possible sinkhole activity to Citizens. See § 627.706(2)(i), Fla. Stat. (2017) (" 'Sinkhole

FLORIDA PENINSULA INSURANCE COMPANY v. CATHERINE NEWLIN AND ERIC NEWLIN

Court: District Court of Appeal of Florida | Date Filed: 2019-06-12

Citation: 273 So. 3d 1172

Snippet: "sinkhole activity" as defined by section 627.706(2)(i), Florida Statutes (2010). If there were

Omega Insurance Company v. Wallace

Court: District Court of Appeal of Florida | Date Filed: 2017-08-16

Citation: 224 So. 3d 864, 2017 Fla. App. LEXIS 11691, 2017 WL 3495211

Snippet: five-part definition of "structural damage.” See § 627.706(2)(k), Fla. Stat. (2011); ch. 2011-39, § 22, at

Leandro de la Fuente v. Florida Insurance Guaranty Association

Court: Supreme Court of Florida | Date Filed: 2016-10-20

Citation: 202 So. 3d 396, 41 Fla. L. Weekly Supp. 473, 2016 Fla. LEXIS 2327

Snippet: is not in the 2009 statute. § 627.706(2)(j), Fla. Stat. (2011); § 627.706(2)(c), Fla. Stat. (2009).

Kathy Johnson v. Omega Insurance Company

Court: Supreme Court of Florida | Date Filed: 2016-09-29

Citation: 200 So. 3d 1207, 41 Fla. L. Weekly Supp. 415, 2016 Fla. LEXIS 2148, 2016 WL 5477795

Snippet: an additional premium for sinkhole coverage. § 627.706(l)(b), Fla. Stat. (2015). In this context, a sinkhole

Citizens Property Insurance Corporation v. Salkey

Court: District Court of Appeal of Florida | Date Filed: 2016-02-26

Citation: 190 So. 3d 1092, 2016 Fla. App. LEXIS 2840, 2016 WL 746344

Snippet: are similar to, but not verbatim from, section 627.706(2), Florida Statutes (2008). . This addition

Sanchez v. Tower Hill Signature Insurance

Court: District Court of Appeal of Florida | Date Filed: 2015-12-11

Citation: 181 So. 3d 1211, 2015 Fla. App. LEXIS 18482, 2015 WL 8483944

Snippet: concluded that a sinkhole loss, as defined by section 627.706, Florida Statutes (2009), had occurred and recommended

Florida Insurance Guaranty Association v. de la Fuente

Court: District Court of Appeal of Florida | Date Filed: 2015-01-07

Citation: 158 So. 3d 675, 2015 Fla. App. LEXIS 102

Snippet: substantially identical to the definition found in section 627.706(2)(c), Florida Statutes (2008). 2

Florida Peninsula Insurance Company v. Cespedes

Court: District Court of Appeal of Florida | Date Filed: 2014-12-17

Citation: 161 So. 3d 581, 2014 Fla. App. LEXIS 20366

Snippet: a warning that this exclusion exists. Section 627.706(4), Florida Statutes (2008), required insurers

Mejia v. Citizens Property Insurance Corp.

Court: District Court of Appeal of Florida | Date Filed: 2014-11-26

Citation: 161 So. 3d 576, 2014 Fla. App. LEXIS 19526, 2014 WL 6675717

Snippet: insurable sinkhole losses on any structure.” § 627.706(1), Fla. Stat. (1981). The version of the statute

Citizens Property Insurance Corp. v. Trapeo

Court: District Court of Appeal of Florida | Date Filed: 2014-01-31

Citation: 136 So. 3d 670, 2014 WL 340670, 2014 Fla. App. LEXIS 1180

Snippet: dispute resolution provided in s. 627.7074.” § 627.706(2)(b). Citizens also filed a “Notice of Automatic

Florida Farm Bureau Casualty Insurance Co. v. State

Court: District Court of Appeal of Florida | Date Filed: 2013-03-13

Citation: 109 So. 3d 860

Snippet: certificates of authority issued by the Office. Section 627.706(1), Florida Statutes (2011), requires Farm Bureau

Universal Insurance Co. of North America v. Warfel

Court: Supreme Court of Florida | Date Filed: 2012-01-26

Citation: 82 So. 3d 47, 37 Fla. L. Weekly Supp. 50, 2012 WL 224104, 2012 Fla. LEXIS 195

Snippet: requirements. See id. The Legislature amended sections 627.706 and 627.707, Florida Statutes (2005), and enacted

Warfel v. Universal Insurance Co. of North America

Court: District Court of Appeal of Florida | Date Filed: 2010-05-12

Citation: 36 So. 3d 136, 2010 Fla. App. LEXIS 6572, 2010 WL 1874367

Snippet: June 1, 2005, the legislature amended sections 627.706 to 627.707, Florida Statutes (2005), and enacted

Widdows v. State Farm Florida Insurance

Court: District Court of Appeal of Florida | Date Filed: 2006-02-03

Citation: 920 So. 2d 149, 2006 Fla. App. LEXIS 1274, 2006 WL 247905

Snippet: under die definition of earth movement. See § 627.706, Fla. Stat. (2002).

Warth v. State Farm Fire and Cas. Co.

Court: District Court of Appeal of Florida | Date Filed: 1997-06-25

Citation: 695 So. 2d 906, 1997 WL 345375

Snippet: foundation, walls, floors, roofs or ceilings. Section 627.706, Florida Statutes (1995), requires that every insurer

Cincinnati Insurance Co. v. Wiltshire

Court: District Court of Appeal of Florida | Date Filed: 1985-07-10

Citation: 472 So. 2d 1276, 10 Fla. L. Weekly 1786, 1985 Fla. App. LEXIS 15123

Snippet: REVERSED. SMITH and THOMPSON, JJ., concur. . Section 627.706, Florida Statutes, became law in 1981. It requires

Hudson v. Prudential Property & Cas. Ins. Co.

Court: District Court of Appeal of Florida | Date Filed: 1984-05-09

Citation: 450 So. 2d 565

Snippet: sinkhole collapse coverage pursuant to section 627.706, Florida Statutes (1981). The endorsement covered