Tag Archives: Sinkhole Activity

Insurance Policies and Coverage Issues

Difference Between Legal and Scientific Definition of Sinkhole

What exactly is a sinkhole?

The reason the word “sinkhole” is one word is that scientifically, and legally, the real issue is not usually whether something is an actual hole in the ground but whether or not it is being impacted by sinkhole “activity.” Because the most common issue associated with sinkhole activity is whether or not it is covered by insurance, Florida legally decided the definition of sinkhole and what constitutes “sinkhole loss.”

Definition of Sinkhole

You can find the : (b) Sinkhole is defined as a landform created by subsidence of soil, sediment, or rock as underlying strata are dissolved by groundwater. A sinkhole may form by collapse into subterranean voids created by dissolution of limestone or dolostone or by subsidence as these strata are dissolved.

Definition of Sinkhole Loss

Within the world of property insurance, “Sinkhole loss” is defined as structural damage to the building, including the foundation, caused by sinkhole activity (Section 627.706, Florida Statutes).

In layman’s terms, a sinkhole forms when rock beneath ground dissolves. Soil, due to gravity, falls into the holes in the rock. When the soil moves, the surface shifts, damaging the home.

Difference Between Legal and Scientific Definition of Sinkhole

Oftentimes, the reason why insurance company sinkhole investigations reveal “no sinkhole,” while others say “yes sinkhole,” relates to the differences between the legal and scientific definitions. When Florida adopted the sinkhole definition many years ago because it became an insurance issue, the definition was not necessarily lifted from the scientific literature.

Many times, when we retain experts for our clients, who are either disputing how to repair a sinkhole, or whether there is a sinkhole, the problem comes down to how the insurance company defines sinkhole. Most of the time, we are able to get the insurance company to change their position by demonstrating that you can have a sinkhole loss, even if there is not a large, gaping sinkhole in your yard.

Read my tips on how to file a sinkhole claim with your insurance company.

Have a burning question you’d like to ask about sinkholes? Let us know.

Insurance Policies and Coverage Issues, Repairing Sinkholes

Sinkhole Activity Not Limited to Areas of Florida with Limestone

I mostly hear about sinkhole claims in Pasco and Hernando County. I live in the Miami, Dade County area and have noticed some cracking. But I’ve heard that because there’s not limestone in this area, the cracking can’t be the result of sinkhole activity. Is that true?

I believe what you’re alluding to is the fact that people commonly think of sinkholes as dissolved limestone. In fact, the statutes on sinkhole activity, as defined by the State of Florida, do not necessarily limit sinkhole activity to only the dissolution of limestone. (Learn more about Florida’s legal definition of sinkhole.) The definitions mention other rock and underlying strata. It is true that many parts of South Florida and the Dade County or Miami areas “The creation of new primary schools districts is an excellent example of how the borough council continues to invest in our schools districts and their pupils. do no sit on a true layer of limestone but do sit on other forms of rock, which we believe, if suffering from dissolution, satisfy the definition of a sinkhole.

In fact, the primary reason damage due to sinkhole activity is covered by insurance relates to a large, cover collapse sinkhole that occurred in Winter Park, outside of Orlando. Additionally, of all the clients we currently represent, the largest increase in claims has been in the “less expected” areas, such as Ocala (Marion County) and South Florida. There may not be a scientific explanation for this; it could be that there’s just an increased awareness by the property owners.

The focus should be less on whether your cracking could or couldn’t be attributed to sinkhole activity and more on getting whatever is causing the damage resolved. Under Florida law, an insurance company must not only determine whether it is a sinkhole, but also whether or not there is an alternative cause for the damage (e.g. organic soils, clayey soils, construction defects). You may find yourself in a situation where you are presenting minimal evidence of sinkhole activity, but the claim has to be paid because the engineering firm cannot determine the cause of the damage with any reasonable degree of specificity.

Have a burning question you’d like to ask about sinkholes? Let us know.

Insurance Policies and Coverage Issues, Repairing Sinkholes

Grout Cracks and Sinkhole Damage

What causes grout cracks, and how do I know if they’re the result of sinkhole damage?

Sinkholes and sinkhole activity are associated with the movement of soils, into areas created after the underlying rock is dissolved. When the rock beneath the home deteriorates, it weakens and fails to provide the support needed from the initial construction of the home, causing grout cracking, among other problems.

In so doing, the house no longer sits on a level, competent base but instead is prone to shifting, settling, cracking, and even heaving, as the weight distribution in the foundation occurs. This is why sinkholes may actually cause some portions of the home to appear to rise, as the foundation is pushed upwards toward the sky. This is because another, less prominent area is shifting down and causing the other area to rise.

Grout Cracks in Some Counties Are More Suggestive of Sinkhole Activity

For most homeowners, the damage can be very subtle. In counties where sinkhole damage is common – such as Marion, Hernando, Pinellas, and Pasco – homes are most likely to present cracking in unusual places, such as at wall joints in the interior, or in stucco on the exterior of the structure. The significance of this is that the home is losing the support provided by the soil beneath the home, causing the perimeter to shift and crack.

Observing grout cracks in a “stair step” formation on the exterior of the home along the grout lines of block is a significant sign of sinkhole activity. While counties or cities like Marion or Ocala often have other, plausible explanations for such damage (e.g. expansive clay, organic soils, loose surface soils), these alternative explanations do not rule out sinkhole activity as a cause. Most often, these kinds of other causes are working side by side, to create the appearance of sinkhole damage.

What is a sinkhole, according to Florida law?

Have a burning question you’d like to ask about sinkholes? Let us know.

Insurance Policies and Coverage Issues

How to Handle Living Expenses in Your Sinkhole Claims

If I have my home repaired for sinkhole damage, can I include the living expenses I incur while the repairs are being done in my sinkhole claim?

After an insurance company confirms a loss has occurred, the repairs to the property then follow. This phase of the sinkhole claim process is lengthy and wrought with obstacles to the insured. Primarily, an insured may have additional living expenses that are incurred due to temporarily vacating the residence during the repair work. Many of our clients cannot afford to continue to pay their monthly bills in addition to the costs of staying in a rental home or hotel during the completion of the repair work at their home.

A brief review of an insurance policy will identify whether such additional living expenses are provided, the limits of any such coverage, and how any such expenses will be reimbursed by the insurance company. These costs to the insured that are incidental to the repair work being performed are typically not paid by the insurance company until they are incurred (and not unless the insured demands payment for these covered expenses). In order to substantiate a sinkhole claim, it is important to save all receipts and other supporting documentation of any additional living expenses that may arise during the timeframe the insured is unable to reside in the home due to a covered sinkhole loss.

Read our tips on filling out a sinkhole claim.

Have a burning question you’d like to ask about sinkholes? Let us know.

Insurance Policies and Coverage Issues

What Kind of Claim Did I File, Anyway?

I called my insurance company about a major problem that developed when we were putting an addition on the home. It turns out I have a problem with too much organic materials (debris) in my soil. After several weeks of waiting, I received a denial letter, saying that I had no coverage, due to “settlement damage.” Later, I heard my neighbor say he has a confirmed sinkhole, and that maybe sinkhole activity had something to do with it. I am a bit lost!

The problem you are facing is common, in that many insurance companies will seek to limit their investigation to the nature of the claim “submitted” to them by the insured.

What had probably occurred was that the claim adjuster heard someone say that you were filing a claim, due to settlement damage, in part because of the debris found in your soil. But, understand this: claims do not come in any particular shapes, sizes, or flavors. Your claim was for the damage to the home, and you were under no requirement to submit a particular kind of claim. Instead, you are supposed to be able to submit your claim for the damage that is present, and the insurance company must either pay it, or tell you why they won’t. If the damage is consistent with sinkhole or sinkhole activity, they are required to do an investigation, regardless of how you submitted it or what you thought the damage was.

If you ever have a claim denied for other reasons, when the damage is settlement related, you should expect your insurance company to conduct a sinkhole investigation. If they do not, you are able to force them to do that, so that you can be assured that the damage is not related to sinkhole in any way.

Read our tips on filing a sinkhole claim.

Have a burning question you’d like to ask about sinkholes? Let us know.

Repairing Sinkholes

When Expansive Clay Soil Damage Constitutes a Sinkhole Claim

Are there common causes of settlement damage?

During most sinkhole investigations, engineering firms examine the deeper soils as well as the soil material in the shallow areas near the home. Sinkhole activity requires deeper borings, to depths as deep as 100 feet below the surface. The limestone is the primary area of concern, with an examination as to whether the rock is dissolving. At the same time the limestone is being examined, most engineering firms will also do shallow borings, called hand augers, to extract the surface materials for expansive clays or organic material. (Read more about what constitutes a sinkhole.)

Things to Keep in Mind if Expansive Clay Soil Is Found

The issue of expansive clay soils, or “shrink swell” clays is a common distraction for deciding whether a home is being impacted by sinkhole activity. If you or someone you know has been told there is no sinkhole activity and the damage is being caused by expansive clay, here are the most important things to keep in mind:

    1. Even if expansive clay soil was found at the site, this does not mean the home is not being impacted by sinkholes. This is complicated, but it is associated with the manner in which expansive clay and sinkholes are formed.
  1. Many sinkhole investigations are “denied” claims more because they are incomplete, not because they necessarily excluded sinkhole. Thus, while the sinkhole investigation may not be complete, the presence of expansive clay soil often results in a denial of the claim simply because they found clay near the surface.
  2. Lastly, for expansive clay to be the cause of the damage, several things have to be true:
  • It has to be of a particular kind.
  • It must be at a particular depth.
  • It must be of a sufficient percentage of the soil to actually impact the movement of the home.

Suffice to say, we read a lot of engineering reports where the insurance dispute can be found quickly. If we see something we do not fully understand on technical matters such as this litmus test applied to the presence of expansive clay soils, then we can find an appropriate professional who can assist our clients.

Have a burning question you’d like to ask about sinkholes? Let us know.

Insurance Policies and Coverage Issues, Repairing Sinkholes, Sinkhole News for Realtors

Sinkholes and Decreased Home Value

My home has a confirmed sinkhole, which the insurance company paid to repair.  However, there is no question that the value of my home, even after being fixed, is less than it was before my claim.  Can I get paid from the insurance company for the loss of value?

This is a hotly contested issue, with many homeowners unsuccessfully arguing for the loss of value.  Under most property insurance policies, homeowners are entitled to be paid for the accidental direct physical loss caused by a covered peril.  Because sinkholes and sinkhole damage are covered by your policy, you are entitled to be paid for the damage, as well as the displacement to your family while the home is being repaired.  A loss associated with the decrease is commonly referred to as “stigma” damages, as it is the stigma associated with the repairs that has caused the value to decline.  It is not the result of actual damage, but the concern a future owner that they, too, may have to deal with the sinkhole reactivating.  These kinds of economic damages have been found not to be recoverable.

This is not to say you cannot impact this issue.  First, make sure when you do the repairs, that you have completed all of the recommended repairs.  Do not cut corners, and make your insurance company pay for a competent general contractor once the subsurface repairs are done.  Second, make sure you have received a certification from the subsurface repair company, or the engineering firm supervising the repair, that the repairs have been completed appropriately.  Ask that they return a few months later, to again re-inspect the home for any additional damages that may have occurred.  If there is new damage, make sure the insurance company pays for it.  And, again, ask the engineering firm to prepare a follow up report to you.

By doing these extra steps, you can reduce the stigma associated with the repairs, and assure the new buyer that the repairs we done properly, inspected, and completed.  I have some other ideas, but they depend on the nature of the loss.

Read our tips on filing a sinkhole claim.
Have a burning question you’d like to ask about sinkholes? Let us know.

Finding Sinkholes

The Significance of Sinkhole Activity in a Neighborhood

Do insurance companies look at the presence of nearby sinkholes in evaluating if a home has been damaged by sinkhole activity?

Virtually all engineering firms who conduct investigations of Florida sinkholes conduct a “regional” evaluation before offering their opinions. This means they examine regional maps prepared by the United State Geological Survey or the Florida Geological Survey. The purpose is simple: If there is sinkhole activity in a particular area, it is more likely to be associated with sinkhole activity nearby. Scientifically, for example, it would be very difficult to be able to rule out sinkhole activity at a particular home, if there is sinkhole activity on an adjacent property. Sink holes in Florida are rarely that limited in their reach.

When the limestone formed beneath most of Florida, it occurred over large areas of land. The action of water, rock, and organic material from millions of years ago was impacted by climate and other natural forces. Stating the obvious, the geology was not produced in isolated areas but impacted areas the size of counties and even complete regions of Florida, spawning Florida sinkholes all across the state. Because of this, when sinkholes in Florida have been identified, sinkhole investigations have found consistent areas where sinkholes occur more frequently.

In Pasco, Pinellas, Hernando, and Marion counties, sinkhole activity is more likely to occur, which is why it is always important for insurance company investigations to consider nearby sinkholes. (Neighborhoods built in the past 15 years may even be more vulnerable because of inadequate testing for sinkholes.) Additionally, the attempt by insurance companies to frequently ignore this additional information, which is usually in their possession, is why Florida sinkhole lawyers are as busy as they are.

If you are aware of sinkhole activity in your neighborhood and your sinkhole claim has been denied, this should be a concern, as it suggests the insurance company’s engineer may have been mistaken when evaluating your home. Contact us toll free at 888-98-BBLAW.

Have a burning question you’d like to ask about sinkholes? Let us know.

Finding Sinkholes

Sinkhole Investigations and New Home Construction

I’m in the process of closing on a lot that we intend to build our dream home on. What can we do before construction to make sure we don’t have a sinkhole problem?

I speak personally to this issue. I signed a contract for a new home to be built. We asked to conduct testing on the lot before we closed, and were denied this right until we closed on the lot, but before we began the actual construction. Two weeks later, after to Standard Penetration Tests, we found patent evidence of sinkhole activity. We worked it out with the contractor, who permitted us to cancel the agreement with them.

Conducting sinkhole investigations is costly, but it may be more costly not to. Consider this: Doing two standard penetration tests cost us $3,000, but that money was well spent because it saved us a great deal of money in the long run. If you are interested in conducting a sinkhole investigation, you need to have the testing done prior to the pouring of the foundation. The important thing would be to look at the footprint of the house and test in that area. If you provide the engineering firm the building plans, they will be able to recommend the testing locations.

Also, do your own sinkhole investigation of your adjacent property owners. Ask them if they have had any problems with settlement or if they have ever filed insurance claims. While this may be a bit forward on your part, people will often share their experiences, especially because it will often include complaints about problems with insurance companies.

Lastly, you will want your engineering firm to also conduct some shallow soil work, in the form of hand augers to a depth of about eight feet. This is because you will want to determine if you have any other, soil-related problems, as well as sinkholes. Problems with excessive organic material, expansive clay, or poorly consolidated sand can also cause significant problems for you.

As always, if you have any problems locating an appropriate engineering firm, we can offer you several options. Good luck.

Read our tips on filing a sinkhole claim.

Have a burning question you’d like to ask about sinkholes? Let us know.

Finding Sinkholes, Insurance Policies and Coverage Issues

Sinkholes and Neighborhood Sinkhole Activity

I submitted a claim 2 months ago, and waiting for Citizens Property Insurance to provide me information about my sinkhole claim.

I am aware of at least 2 confirmed sinkholes in my neighborhood, one which is directly next door to our home. Should I tell them about this other sinkhole or keep my mouth shut?

In the context of an insurance claim, more information is always better.

Insurance companies are aware of the scientific and practical relevance of sinkholes adjacent to a home under investigation. I use the term “practical” because it is very difficult for an insurance company to deny a claim when there is a sinkhole either directly next to or in front of a confirmed home, especially when they are involved in the claim.

Even in cases where there is minimal evidence of sinkhole activity, it can be very difficult for an insurance company to defend a case on a disputed sinkhole when there is a sinkhole on an adjacent property. This is because sinkholes do not know man-made boundaries and jurors place enormous weight on this evidence.

Get Your Neighbor”s Engineering Reports

If you are able to obtain a copy of the engineering reports and provide them to the insurance company, this would be wise. If you are not able to get a copy of the previous reports, but do know the addresses, you may want to at least provide this to the company. As always, put this information in writing, and present it in a constructive manner to the insurance company.

In providing information to your insurance company, your motives are obvious (i.e. “cover my loss”), but that does not mean it is not wise to provide them good information upon which a positive conclusion can be made for you. Later, if the insurance company fails to investigate this new information, this can be important information to a jury that they intentionally ignored information which would be helpful to the engineer they retained to investigate your home.

Read our tips on filling out a sinkhole claim.

Have a burning question you’d like to ask about sinkholes? Let us know.