ColodnyLaw’s Maria Elena Abate–How Should Insurance Adjusters Approach Sinkhole Claims?

Above:  Maria Elena Abate, Shareholder with Colodny Fass& Webb

ColodnyLaw’s Maria Elena Abate Quoted in Insurance Journal

Quoted in Insurance Journal as part of an article on sinkhole claims adjusting entitled “That Sinking Feeling,” Colodny Fass& Webb Shareholder Maria Elena Abate explained to Insurance Journal that Florida has sinkhole coverage, as well as catastrophic ground cover collapse, which is required coverage on every policy.

In 2005, she said, Florida law also required structural damage to a building, including the foundation, as part of the definition of a sinkhole loss. That specific language, according to Abate, resulted from years of refining the definitions and regulatory language so that frivolous claims were reduced. Laws prior to 2005 simply stated that any physical damage to a building caused by sinkhole activity would be covered. This led to claims for cracks or damage that may not have been caused by a sinkhole. In 2005, due to the amount of claims made for minute cosmetic damage, the law changed to require structural damage.

However, Abate said structural damage definition was not specifically defined in the law until 2011, leading to divergent court rulings. That made the change in 2011 essential, which gave structural damage a technical clarification. “Today the sinkhole statutes require coverage for structural damage to a building as defined by law, which was caused by sinkhole activity.”

Even with the new definitions, Abate said most claim amounts are still at or near policy limits. “These are expensive claims due to the need to remediate the land and fill the sinkhole.”

To read the rest of “That Sinking Feeling,” click here.