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The 2025 Florida Statutes
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F.S. 627.706627.706 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.”
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Annotations, Discussions, Cases:
Cases Citing Statute 627.706
Total Results: 24
450 So. 2d 565
District Court of Appeal of Florida | Filed: May 9, 1984 | Docket: 2517213
Cited 28 times | Published
for sinkhole collapse coverage pursuant to section 627.706, Florida Statutes (1981). The endorsement covered
82 So. 3d 47, 37 Fla. L. Weekly Supp. 50, 2012 WL 224104, 2012 Fla. LEXIS 195
Supreme Court of Florida | Filed: Jan 26, 2012 | Docket: 60306224
Cited 15 times | Published
In 1981, the Florida Legislature enacted section 627.706, which required “[e]very insurer authorized
778 F.3d 1214, 2015 U.S. App. LEXIS 3024, 2015 WL 821146
Court of Appeals for the Eleventh Circuit | Filed: Feb 27, 2015 | Docket: 2637875
Cited 8 times | Published
“structural damage.”
See
Fla. Stats. § 627.706(2)(c) (2005). Prior to the statute being substantially
161 So. 3d 576, 2014 Fla. App. LEXIS 19526, 2014 WL 6675717
District Court of Appeal of Florida | Filed: Nov 26, 2014 | Docket: 60247217
Cited 8 times | Published
insurable sinkhole losses on any structure.” § 627.706(1), Fla. Stat. (1981). The version of the statute
200 So. 3d 1207, 41 Fla. L. Weekly Supp. 415, 2016 Fla. LEXIS 2148, 2016 WL 5477795
Supreme Court of Florida | Filed: Sep 29, 2016 | Docket: 4448478
Cited 6 times | Published
an additional premium for sinkhole coverage. § 627.706(l)(b), Fla. Stat. (2015). In this context, a sinkhole
136 So. 3d 670, 2014 WL 340670, 2014 Fla. App. LEXIS 1180
District Court of Appeal of Florida | Filed: Jan 31, 2014 | Docket: 60240056
Cited 3 times | Published
dispute resolution provided in s. 627.7074.” § 627.706(2)(b).
Citizens also filed a “Notice of Automatic
192 F. Supp. 3d 1287, 2016 U.S. Dist. LEXIS 92509, 2016 WL 3636032
District Court, M.D. Florida | Filed: Jun 28, 2016 | Docket: 64309355
Cited 2 times | Published
applicability and purpose of Section 627.706 of the Florida Statutes. Under Section 627.706, property insurers
202 So. 3d 396, 41 Fla. L. Weekly Supp. 473, 2016 Fla. LEXIS 2327
Supreme Court of Florida | Filed: Oct 20, 2016 | Docket: 4481081
Cited 1 times | Published
is not in the 2009 statute. § 627.706(2)(j), Fla. Stat. (2011); § 627.706(2)(c), Fla. Stat. (2009).
695 So. 2d 906, 1997 WL 345375
District Court of Appeal of Florida | Filed: Jun 25, 1997 | Docket: 425014
Cited 1 times | Published
foundation, walls, floors, roofs or ceilings.
Section 627.706, Florida Statutes (1995), requires that every
District Court of Appeal of Florida | Filed: Apr 3, 2024 | Docket: 68403456
Published
damage. See ch. 11-39, § 22, Laws of Fla.; cf. § 627.706(2)(k) Fla. Stat.
(2012). Citizens maintains that
District Court of Appeal of Florida | Filed: Jan 5, 2024 | Docket: 68138182
Published
reported possible sinkhole activity to Citizens. See
§ 627.706(2)(i), Fla. Stat. (2017) (" 'Sinkhole
273 So. 3d 1172
District Court of Appeal of Florida | Filed: Jun 12, 2019 | Docket: 15762825
Published
"sinkhole activity" as defined by section 627.706(2)(i), Florida Statutes (2010). If
there were
224 So. 3d 864, 2017 Fla. App. LEXIS 11691, 2017 WL 3495211, 42 Fla. L. Weekly Fed. D 1786
District Court of Appeal of Florida | Filed: Aug 16, 2017 | Docket: 6138716
Published
five-part definition of "structural damage.” See § 627.706(2)(k), Fla. Stat. (2011); ch. 2011-39, § 22, at
190 So. 3d 1092, 2016 Fla. App. LEXIS 2840, 2016 WL 746344
District Court of Appeal of Florida | Filed: Feb 26, 2016 | Docket: 3039683
Published
definitions are similar to, but not verbatim from, section 627.706(2), Florida Statutes (2008).
. This addition
181 So. 3d 1211, 2015 Fla. App. LEXIS 18482, 2015 WL 8483944
District Court of Appeal of Florida | Filed: Dec 11, 2015 | Docket: 60252529
Published
concluded that a sinkhole loss, as defined by section 627.706, Florida Statutes (2009), had occurred and
158 So. 3d 675, 2015 Fla. App. LEXIS 102, 2015 WL 72273
District Court of Appeal of Florida | Filed: Jan 7, 2015 | Docket: 2621519
Published
substantially identical to the definition found in section 627.706(2)(c), Florida Statutes (2008).
2
161 So. 3d 581, 2014 Fla. App. LEXIS 20366, 2014 WL 7156315
District Court of Appeal of Florida | Filed: Dec 17, 2014 | Docket: 2616092
Published
contains a warning that this exclusion exists. Section 627.706(4), Florida Statutes (2008), required insurers
7 F. Supp. 3d 1226, 2014 U.S. Dist. LEXIS 35096, 2014 WL 1092413
District Court, M.D. Florida | Filed: Mar 18, 2014 | Docket: 64293903
Published
“structural damage” as defined by Fla. Stat. § 627.706 (2011). (Doc. 17, ¶¶ 6-8) After Defendant denied
981 F. Supp. 2d 1219, 2013 WL 5913515, 2013 U.S. Dist. LEXIS 156365
District Court, M.D. Florida | Filed: Oct 31, 2013 | Docket: 65995362
Published
structural integrity of the building.”
Both Section 627.706, Florida Statutes (2010), and the insurance
966 F. Supp. 2d 1316, 2013 WL 4495182, 2013 U.S. Dist. LEXIS 117949
District Court, M.D. Florida | Filed: Aug 20, 2013 | Docket: 65993633
Published
limestone or similar rock formation.
Fla. Stat. § 627.706 (1981).
In 2005, the Florida Legislature redefined
109 So. 3d 860, 2013 WL 950549
District Court of Appeal of Florida | Filed: Mar 13, 2013 | Docket: 60229823
Published
certificates of authority issued by the Office. Section 627.706(1), Florida Statutes (2011), requires Farm
835 F. Supp. 2d 1227, 2011 WL 6099367, 2011 U.S. Dist. LEXIS 141258
District Court, M.D. Florida | Filed: Dec 7, 2011 | Docket: 65977908
Published
similar rock formation.
$ * * * * *
Fla. Stat. § 627.706 (1981) (emphasis added). In 2005, the Legislature
920 So. 2d 149, 2006 Fla. App. LEXIS 1274, 2006 WL 247905
District Court of Appeal of Florida | Filed: Feb 3, 2006 | Docket: 64842168
Published
excluded under die definition of earth movement. See § 627.706, Fla. Stat. (2002).
472 So. 2d 1276, 10 Fla. L. Weekly 1786, 1985 Fla. App. LEXIS 15123
District Court of Appeal of Florida | Filed: Jul 10, 1985 | Docket: 64613268
Published
REVERSED.
SMITH and THOMPSON, JJ., concur.
. Section 627.706, Florida Statutes, became law in 1981. It requires
