Title: Sinkhole and Catastrophic Ground Cover Collapse Insurance

Summary: Redefines "catastrophic ground cover collapse" for insurance coverage purposes; provides circumstances under which structure or building damage constitutes specified loss.

Full Text:
An act relating to sinkhole and catastrophic ground cover collapse insurance; amending s. 627.706, F.S.; revising the definition of the term "catastrophic ground cover collapse" for insurance coverage purposes; providing circumstances under which damage of a structure or building constitutes a specified loss; defining the term "dangerous"; providing applicability; providing an effective date. Be It Enacted by the Legislature of the State of Florida: Section 1. Paragraph (a) of subsection (2) of section 627.706, Florida Statutes, is amended to read: 627.706 Sinkhole insurance; catastrophic ground cover collapse; definitions.-(2) As used in ss. 627.706-627.7074, and as used in connection with any policy providing coverage for a catastrophic ground cover collapse or for sinkhole losses, the term: (a) "Catastrophic ground cover collapse" means geological activity that results in all the following: 1. The imminent abrupt collapse of the ground cover or; 2. a depression in the ground cover clearly visible to the naked eye; and 2.a.3. Structural damage to the covered building, HB 2019 including the foundation; or and b.4. The insured structure being:(I) Condemned and ordered to be vacated by the governmental agency authorized by law to issue such an order for that structure;or (II) Declared dangerous and a real and imminent threat to public safety by a professional engineer licensed in this state in a written notice to the governmental agency authorized by law with code enforcement for that structure.Contents coverage applies if there is a loss resulting from a catastrophic ground cover collapse. Damage consisting merely of the settling or cracking of a foundation, structure, or building does not constitute a loss resulting from a catastrophic ground cover collapse unless the structure or building has been ordered to be vacated or the structure or building has been declared dangerous by a professional engineer licensed in this state or by the governmental agency authorized by law with code enforcement for that structure or building. As used in this paragraph, the term "dangerous" has the same meaning as provided in the Florida Building Code, Building Vol ume. Section 2. The amendment made by this act to s. 627.706, Florida Statutes, applies to new and renewal property insurance policies issued on or after July 1, 2020. Section 3. This act shall take effect July 1, 2019.