Florida Statute 627.707 | Lawyer Caselaw & Research

The 2024 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 Casetext

Amendments to 627.707

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

Annotations, Discussions, Cases:

Cases Citing Statute 627.707

Total Results: 20

Ringelman v. Citizens Property Insurance Corp.

Court: District Court of Appeal of Florida | Date Filed: 2017-09-01

Citation: 228 So. 3d 602

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

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

Barton v. Capitol Preferred Insurance Co.

Court: District Court of Appeal of Florida | Date Filed: 2016-12-09

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

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

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: neutral evaluation of their claim. See §§ 627.707, 627.7074, Fla. Stat. (2009). The homeowners requested

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

Citizens Property Insurance Corporation v. Nunez

Court: District Court of Appeal of Florida | Date Filed: 2016-06-24

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

Snippet: to resolve sinkhole claims. See §§ 627.707-.7074, Fla. Stat. (2010). After the insured makes

Citizens Property Insurance Corporation v. Duenas

Court: District Court of Appeal of Florida | Date Filed: 2016-06-10

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

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

Citizens Property Insurance Corporation v. Simoneau

Court: District Court of Appeal of Florida | Date Filed: 2016-04-13

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

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

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

Court: District Court of Appeal of Florida | Date Filed: 2016-03-30

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

Snippet: conduct the investigation required by section 627.707, Florida Statutes (2004), for sinkhole claims.

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

Citizens Property Insurance Corporation v. Amat

Court: District Court of Appeal of Florida | Date Filed: 2016-02-19

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

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

Roker v. Tower Hill Preferred Insurance Co.

Court: District Court of Appeal of Florida | Date Filed: 2015-03-27

Citation: 164 So. 3d 690, 2015 Fla. App. LEXIS 4390

Snippet: section 627.707 retroactively) approved, 82 So.3d 47 (Fla.2012). The 2010 version of section 627.707(5),

Citizens Property Insurance Corporation v. Munoz

Court: District Court of Appeal of Florida | Date Filed: 2014-12-24

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

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

Diaz v. Tower Hill Prime Insurance Company

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

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

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

Herrera v. Tower Hill Preferred Insurance Co.

Court: District Court of Appeal of Florida | Date Filed: 2014-10-29

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

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

Omega Insurance Co. v. Johnson

Court: District Court of Appeal of Florida | Date Filed: 2014-09-05

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

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

Tower Hill Select Insurance Company v. McKee

Court: District Court of Appeal of Florida | Date Filed: 2014-08-20

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

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

LoBello v. State Farm Florida Insurance Co.

Court: District Court of Appeal of Florida | Date Filed: 2014-06-18

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

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

State Farm Florida Insurance Co. v. Phillips

Court: District Court of Appeal of Florida | Date Filed: 2014-02-14

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

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

State Farm Florida Insurance Co. v. Colella

Court: District Court of Appeal of Florida | Date Filed: 2012-04-27

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

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