Q. What is a sinkhole?

A depression in a karst area, commonly with a circular pattern. Its drainage is subterranean, its size is measured in meter or tens of meters, and it is commonly funnel-shaped.

In layperson’s terms, when a sinkhole forms, it causes ground “subsidence,” which means there is a sudden sinking or gradual downward settling of the earth’s surface with little or no horizontal motion.

Q. If you suspect a sinkhole is the cause of damage, what do you do?

Request that the insurer, at its expense, perform a geo-technical investigation to determine the cause of the damage within a reasonable professional probability. Florida Statute 627.707 sets forth the standards that it must follow.

Q. What is Neutral Evaluation?

On October 1, 2006, Florida Statute 627.7074 took effect. It was meant to be an alternative dispute resolution, but it has become much more. Once invoked by either side, and in virtually every case it is the insurer, it is mandatory. First, it stays all court proceedings for at least 60 (sixty) days.

Second, sinkholes are currently being confirmed all over the state of Florida. And whether they are confirmed or being denied as the cause of damage, insurers are using the neutral evaluation process to greatly affect the outcome of the claim. Neutral evaluators, many of whom derive a great deal of their income from insurance companies, are issuing opinions in these informal meetings. The rules of evidence do not apply to neutral evaluations. And finally, these opinions being issued by the neutral evaluators are admissible in a jury trial! Their opinions can drastically affect the value of an insured’s claim.

Q. How is this affecting the policyholders?

The insurers are being emboldened by these neutral evaluation opinions. They feel that if these opinions come down in their favor, they now can go into court and argue that a “neutral,” impartial party ruled in their favor. Imagine the effect that has on a jury.

Q. Is there anything you can do when neutral evaluation is demanded?

It is important that the policyholder has the right experts and prepares a coherent, well prepared presentation for use at the neutral evaluation.

Talk to Craig
Would you like to talk to Craig about a sinkhole issue? You can reach him in the Merlin Law Group’s Tampa office at 813-229-1000 or via email at ckubiak@merlinlawgroup.com.