Bahama Bay, a condo resort community just miles from Disney World experienced a terrifying event none of us hope to be a part of. A 30 foot sinkhole opened up the morning of Friday December 9th and forced the evacuation of the building which has since been declared uninhabitable in its current state. Our firm assumed the representation of the community after it was discovered the property did not carry coverage for sinkhole activity but only carried the minimum catastrophic ground cover collapse coverage. Based on the fact that the hole did not actually take the building down combined with the fact that the property only carried catastrophic coverage, the carrier gave all indications before we were involved that the claim was going to be denied. After some back and forth it looks like the carrier will be extending insurance coverage for the immediate safety concerns at least. Surely there will be a much monger discussion coming on many other coverage issues including looking at a more permanent fix. Yet another example of how important it is to carry sinkhole coverage and how problematic the catastrophic coverage can be.
May 27, 2017 by Morgan Barfield