Florida Statute 627.707 - Full Text and Legal Analysis

The 2025 Florida Statutes

Title XXXVII
INSURANCE

Chapter 627
INSURANCE RATES AND CONTRACTS

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F.S. 627.707

627.707 Investigation of sinkhole claims; insurer payment; nonrenewals.—Upon receipt of a claim for a sinkhole loss to a covered building, an insurer must meet the following standards in investigating a claim:

(1) The insurer must inspect the policyholder’s premises to determine if there is structural damage that may be the result of sinkhole activity.

(2) If the insurer confirms that structural damage exists but is unable to identify a valid cause of such damage or discovers that such damage is consistent with sinkhole loss, the insurer shall engage a professional engineer or a professional geologist to conduct testing as provided in s. 627.7072 to determine the cause of the loss within a reasonable professional probability and issue a report as provided in s. 627.7073, only if sinkhole loss is covered under the policy. Except as provided in subsections (4) and (6), the fees and costs of the professional engineer or professional geologist shall be paid by the insurer.

(3) Following the initial inspection of the policyholder’s premises, the insurer shall provide written notice to the policyholder disclosing the following information:

(a) What the insurer has determined to be the cause of damage, if the insurer has made such a determination.

(b) A statement of the circumstances under which the insurer is required to engage a professional engineer or a professional geologist to verify or eliminate sinkhole loss and to engage a professional engineer to make recommendations regarding land and building stabilization and foundation repair.

(c) A statement regarding the right of the policyholder to request testing by a professional engineer or a professional geologist, the circumstances under which the policyholder may demand certain testing, and the circumstances under which the policyholder may incur costs associated with testing.

(4)(a) If the insurer determines that there is no sinkhole loss, the insurer may deny the claim.

(b) If coverage for sinkhole loss is available and the insurer denies the claim without performing testing under s. 627.7072, the policyholder may demand testing by the insurer under s. 627.7072.

1. The policyholder’s demand for testing must be communicated to the insurer in writing within 60 days after the policyholder’s receipt of the insurer’s denial of the claim.

2. The policyholder shall pay 50 percent of the actual costs of the analyses and services provided under ss. 627.7072 and 627.7073 or $2,500, whichever is less.

3. The insurer shall reimburse the policyholder for the costs if the insurer’s engineer or geologist provides written certification pursuant to s. 627.7073 that there is sinkhole loss.

(5) If a sinkhole loss is verified, the insurer shall pay to stabilize the land and building and repair the foundation in accordance with the recommendations of the professional engineer retained pursuant to subsection (2), with notice to the policyholder, subject to the coverage and terms of the policy. The insurer shall pay for other repairs to the structure and contents in accordance with the terms of the policy. If a covered building suffers a sinkhole loss or a catastrophic ground cover collapse, the insured must repair such damage or loss in accordance with the insurer’s professional engineer’s recommended repairs. However, if the insurer’s professional engineer determines that the repair cannot be completed within policy limits, the insurer must pay to complete the repairs recommended by the insurer’s professional engineer or tender the policy limits to the policyholder.

(a) The insurer may limit its total claims payment to the actual cash value of the sinkhole loss, which does not include underpinning or grouting or any other repair technique performed below the existing foundation of the building, until the policyholder enters into a contract for the performance of building stabilization or foundation repairs in accordance with the recommendations set forth in the insurer’s report issued pursuant to s. 627.7073.

(b) In order to prevent additional damage to the building or structure, the policyholder must enter into a contract for the performance of building stabilization and foundation repairs within 90 days after the insurance company confirms coverage for the sinkhole loss and notifies the policyholder of such confirmation. This time period is tolled if either party invokes the neutral evaluation process, and begins again 10 days after the conclusion of the neutral evaluation process.

(c) After the policyholder enters into the contract for the performance of building stabilization and foundation repairs, the insurer shall pay the amounts necessary to begin and perform such repairs as the work is performed and the expenses are incurred. The insurer may not require the policyholder to advance payment for such repairs. If repair covered by a personal lines residential property insurance policy has begun and the professional engineer selected or approved by the insurer determines that the repair cannot be completed within the policy limits, the insurer must complete the professional engineer’s recommended repair or tender the policy limits to the policyholder without a reduction for the repair expenses incurred.

(d) The stabilization and all other repairs to the structure and contents must be completed within 12 months after entering into the contract for repairs described in paragraph (b) unless:

1. There is a mutual agreement between the insurer and the policyholder;

2. The claim is involved with the neutral evaluation process;

3. The claim is in litigation; or

4. The claim is under appraisal or mediation.

(e) Upon the insurer’s obtaining the written approval of any lienholder, the insurer may make payment directly to the persons selected by the policyholder to perform the land and building stabilization and foundation repairs. The decision by the insurer to make payment to such persons does not hold the insurer liable for the work performed.

(f) The policyholder may not accept a rebate from any person performing the repairs specified in this section. If a policyholder receives a rebate, coverage is void and the policyholder must refund the amount of the rebate to the insurer. Any person performing the repairs specified in this section who offers a rebate commits insurance fraud punishable as a third degree felony as provided in s. 775.082, s. 775.083, or s. 775.084. As used in this paragraph, the term “rebate” means a remuneration, payment, gift, discount, or transfer of any item of value to the policyholder by or on behalf of a person performing the repairs specified in this section as an incentive or inducement to obtain repairs performed by that person.

(6) If the insurer obtains, pursuant to s. 627.7073, written certification that there is no sinkhole loss or that the cause of the damage was not sinkhole activity, and if the policyholder has submitted the sinkhole claim without good faith grounds for submitting such claim, the policyholder shall reimburse the insurer for 50 percent of the actual costs of the analyses and services provided under ss. 627.7072 and 627.7073; however, a policyholder is not required to reimburse an insurer more than $2,500 with respect to any claim. A policyholder is required to pay reimbursement under this subsection only if the policyholder requested the analysis and services provided under ss. 627.7072 and 627.7073 and the insurer, before ordering the analysis under s. 627.7072, informs the policyholder in writing of the policyholder’s potential liability for reimbursement and gives the policyholder the opportunity to withdraw the claim.

(7) An insurer may not nonrenew any policy of property insurance on the basis of filing of claims for sinkhole loss if the total of such payments does not equal or exceed the policy limits of coverage for the policy in effect on the date of loss, for property damage to the covered building, as set forth on the declarations page, or if the policyholder repaired the structure in accordance with the engineering recommendations made pursuant to subsection (2) upon which any payment or policy proceeds were based. If the insurer pays such limits, it may nonrenew the policy.

(8) The insurer may engage a professional structural engineer to make recommendations as to the repair of the structure.

History.—s. 1, ch. 92-146; s. 4, ch. 93-401; s. 19, ch. 2005-111; s. 26, ch. 2006-12; s. 25, ch. 2011-39; s. 15, ch. 2012-151.

F.S. 627.707 on Google Scholar

F.S. 627.707 on CourtListener

Amendments to 627.707

Annotations, Discussions, Cases:

Arrestable Offenses / Crimes under Fla. Stat. 627.707

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

S627.707 5e - FRAUD - RENUMBERED SEE REC# 7311 - F: T

S627.707 5f - FRAUD - REPAIR SINKHOLE DAMAGE OFFER REBATE - F: T

Cases Citing Statute 627.707

Total Results: 28

LoBello v. State Farm Florida Insurance Co.

152 So. 3d 595, 2014 WL 2751037, 2014 Fla. App. LEXIS 9192

District Court of Appeal of Florida | Filed: Jun 18, 2014 | Docket: 60244966

Cited 20 times | Published

testing for sinkhole activity in accordance with section 627.707, Florida Statutes (2007).1 State Farm answered

Universal Insurance Co. of North America v. Warfel

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

X, titled “Property Insurance Contracts.” Section 627.707(2) requires insurance companies, upon receipt

Citizens Property Insurance Corporation v. Amat

198 So. 3d 730, 2016 Fla. App. LEXIS 2412, 2016 WL 670189

District Court of Appeal of Florida | Filed: Feb 19, 2016 | Docket: 3037726

Cited 13 times | Published

repairs. This language is consistent with. section 627.707(5)(b), Florida Statutes (2010). Before

Kathy Johnson v. Omega Insurance Company

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

provide payment for the damages pursuant to section 627.707(5)(b). Johnson was additionally advised that

Roker v. Tower Hill Preferred Insurance Co.

164 So. 3d 690, 2015 Fla. App. LEXIS 4390, 2015 WL 1380211

District Court of Appeal of Florida | Filed: Mar 27, 2015 | Docket: 60248023

Cited 3 times | Published

decision not to apply an amended version of section 627.707 retroactively) approved, 82 So.3d 47 (Fla.2012)

State Farm Florida Insurance Co. v. Phillips

134 So. 3d 505, 2014 WL 560853, 2014 Fla. App. LEXIS 1984

District Court of Appeal of Florida | Filed: Feb 14, 2014 | Docket: 60239256

Cited 3 times | Published

that the sinkhole loss settlement clause and section 627.707(5)(b), Florida Statutes (2010),1 on which that

State Farm Florida Insurance Co. v. Nichols

21 So. 3d 904, 2009 Fla. App. LEXIS 16556

District Court of Appeal of Florida | Filed: Nov 6, 2009 | Docket: 1656072

Cited 3 times | Published

State Farm contends that it is authorized by section 627.707(5)(b), Florida Statutes (2007), to withhold

Citizens Property Insurance Corporation v. Munoz

158 So. 3d 671, 2014 Fla. App. LEXIS 20820, 2014 WL 7331095

District Court of Appeal of Florida | Filed: Dec 24, 2014 | Docket: 2618727

Cited 2 times | Published

conduct testing and issue a report. See § 627.707(2), (4), Fla. Stat. (2010). And section 627.7073(l)(c)

Warfel v. Universal Insurance Co. of North America

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

District Court of Appeal of Florida | Filed: May 12, 2010 | Docket: 1639037

Cited 2 times | Published

2006) (on file with comm.). Specifically, section 627.707, Florida Statutes (2005), was amended to revise

FEDERATED NATIONAL INSURANCE COMPANY v. Copeland

932 So. 2d 310, 2006 WL 141627

District Court of Appeal of Florida | Filed: Jan 20, 2006 | Docket: 2555351

Cited 2 times | Published

Copeland's claim against Federated for violation of section 627.707, Florida Statutes (2004).[1] Federated *311

Barton v. Capitol Preferred Insurance Co.

208 So. 3d 239, 2016 Fla. App. LEXIS 18168

District Court of Appeal of Florida | Filed: Dec 9, 2016 | Docket: 4553787

Cited 1 times | Published

for sinkhole testing to Capitol, pursuant to section 627.707, Florida Statutes (2011). 1 The

Tower Hill Select Insurance Company v. McKee

151 So. 3d 2, 2014 WL 4086807, 2014 Fla. App. LEXIS 12784

District Court of Appeal of Florida | Filed: Aug 20, 2014 | Docket: 1119478

Cited 1 times | Published

settlement provision tracking the language of section 627.707(5)(b), Florida Statutes (2010), Tower Hill

State Farm Florida Insurance Co. v. Colella

95 So. 3d 891, 2012 WL 1448576, 2012 Fla. App. LEXIS 6612

District Court of Appeal of Florida | Filed: Apr 27, 2012 | Docket: 60311331

Cited 1 times | Published

with sinkhole activity.” In accordance with section 627.707, Florida Statutes (2006), State Farm retained

Geico General Insurance v. Virtual Imaging Services, Inc.

90 So. 3d 321, 2012 WL 1414694, 2012 Fla. App. LEXIS 6387

District Court of Appeal of Florida | Filed: Apr 25, 2012 | Docket: 60309352

Cited 1 times | Published

State Farm’s receipt of proof of loss, while section 627.707(5)(b), Florida Statutes (2007), a permissive

Ringelman v. Citizens Property Insurance Corp.

228 So. 3d 602, 2017 WL 3795873

District Court of Appeal of Florida | Filed: Sep 1, 2017 | Docket: 6148686

Published

Ruderman, 117 So.3d 943, 948 (Fla. 2013). Section 627.707, Florida Statutes (2011), sets forth the procedures

Omega Insurance Company v. Wallace

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

This provision is consistent with section 627.707(5)(b), Florida Statutes (2010), 5

Citizens Property Insurance Corporation v. Nunez

194 So. 3d 1064, 2016 Fla. App. LEXIS 9693, 2016 WL 3450426

District Court of Appeal of Florida | Filed: Jun 24, 2016 | Docket: 3082299

Published

that may have resulted from sinkhole activity. § 627.707(1). If so, the insurer must engage. a professional

Citizens Property Insurance Corporation v. Duenas

192 So. 3d 1268, 2016 WL 3215826, 2016 Fla. App. LEXIS 8922

District Court of Appeal of Florida | Filed: Jun 10, 2016 | Docket: 3077254

Published

settlement provision tracking the language of section 627.707(5)(b), Florida Statutes (2010), [the insurer]

Citizens Property Insurance Corporation v. Simoneau

197 So. 3d 70, 2016 Fla. App. LEXIS 5551, 2016 WL 1450317

District Court of Appeal of Florida | Filed: Apr 13, 2016 | Docket: 3053103

Published

settlement provision tracking the language of section 627.707(5)(b), Florida Statutes (2010), Tower Hill

Citizens Property Insurance Corp. v. River Oaks Condominium II Association, Inc.

190 So. 3d 1110, 2016 Fla. App. LEXIS 4810, 2016 WL 1234706

District Court of Appeal of Florida | Filed: Mar 30, 2016 | Docket: 3049204

Published

failure to conduct the investigation required by section 627.707, Florida Statutes (2004), for sinkhole claims

Citizens Property Insurance Corporation v. Salkey

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

statute for such sinkhole claims in 2008. See § 627.707, Fla. Stat. (2008). I write to explain my reading

Diaz v. Tower Hill Prime Insurance Company

152 So. 3d 835, 2014 Fla. App. LEXIS 20201, 2014 WL 7009726

District Court of Appeal of Florida | Filed: Dec 12, 2014 | Docket: 2614430

Published

inspecting the property in compliance with section 627.707, Florida Statutes (2010), Tower Hill determined

Herrera v. Tower Hill Preferred Insurance Co.

161 So. 3d 565, 2014 Fla. App. LEXIS 17638, 2014 WL 5461969

District Court of Appeal of Florida | Filed: Oct 29, 2014 | Docket: 60247207

Published

professional probability and issue a report.” See § 627.707(2), Fla. Stat. (2010). The insurer must pay the

Omega Insurance Co. v. Johnson

207 So. 3d 245, 2014 Fla. App. LEXIS 13737

District Court of Appeal of Florida | Filed: Sep 5, 2014 | Docket: 63631302

Published

investigating a sinkhole claim are found in section 627.707, Florida Statutes (2009). They require the

Sevila v. First Liberty Insurance

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

investigation in accordance with Florida Statute, § 627.707 (2010), and (ii) “Structural damage” means, “damage

Gonzalez v. Liberty Mutual Fire Insurance

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

there has been physical damage to the structure.” § 627.707(2), Fla. Stat. (2010). After the initial inspection

Morejon v. American Security Insurance

829 F. Supp. 2d 1258, 2011 U.S. Dist. LEXIS 144255, 2011 WL 6287946

District Court, M.D. Florida | Filed: Dec 9, 2011 | Docket: 65977098

Published

neutral evaluation process in accordance with § 627.707(11). Therefore, this case is administratively

Geico Indemnity Co. v. Virtual Imaging Services, Inc.

79 So. 3d 55, 2011 Fla. App. LEXIS 19041, 2011 WL 5964369

District Court of Appeal of Florida | Filed: Nov 30, 2011 | Docket: 60305347

Published

State Farm’s receipt of proof of loss, while section 627.707(5)(b), Florida Statutes (2007), a permissive