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Insurance-Sinkhole Claims Process

Making a decision to file a claim for damage to your home can be a process wrought with uncertainty and worry. Nevertheless, it is the first step in restoring your home to as close to its original condition as possible. To initiate the process a homeowner usually calls the insurance company to report that there is damage to the home and that it is consistent with the type of damage caused by sinkhole activity. While an attorney is not necessary to place a claim with the insurance company, it may be helpful to consult with a legal professional prior to making the claim and in some cases it may be beneficial to place the claim through an attorney. Whether or not you decide to utilize the services of a lawyer at the outset of your claim, here are some things you should know.

According to state statute, your insurance company is required to diligently investigate any damage reported to an insured home that is consistent with sinkhole activity. If an initial inspection confirms damage consistent with sinkhole activity, the law requires the carrier to retain a geologist or geotechnical engineer to do testing at the property in order to determine the presence (or lack thereof) of sinkhole conditions. This testing usually occurs over the course of several weeks and may include multiple visits by various professionals to your home. Testing may consist of GPR (ground penetrating radar), ER (electrical sensitivity) studies, and SPT (standard penetration testing). These tests are geological studies designed to detect the anomalies under the ground that are consistent with sinkhole activity. The expert or experts retained by the insurance company to conduct the statutorily-required testing must then issue a written certification of his opinion as to whether there is sinkhole activity on the property.

Usually the expert retained by the insurance company for the statutory inspection process is a geologist or geotechnical engineer the company has used before for that same service, and you can rest assured that the insurance company tends to select experts for this process that have written opinions favorable to the carrier in the past. In other words, a policyholder cannot assume that the professional investigating their home and potential damage to it is unbiased. You can rest assured these experts have the insurance company's best interests at heart, not necessarily the homeowner's. Many of these insurance company experts will devise numerous explanations for the observed damage that bring the loss outside the scope of the insurance policy provisions, such as attributing the damage to "shrink-swell clays" or poor workmanship in the construction of the home, in order to provide the insurance company a basis to deny the claim and blame the damage on something other than sinkhole-related geologic activity underneath and around your home.

Even if the insurance company reluctantly concedes there is a sinkhole, you may be offered an amount to settle your case that is undervalued or otherwise is insufficient to fully repair your home. If an insurance company's experts insist you do not have a sinkhole, or offer what you believe to be an inadequate remedy in response to a claim they do recognize as sinkhole damage, we can assist you in obtaining a second opinion from qualified experts--experts who are not beholden to the insurance companies and their interests. And above all else, before you accept a denial of your claim by the insurance company as the final word, or sign a release to obtain proceeds from a low-ball settlement offer (which most likely would foreclose on your ability to make any further demands should the need arise), please consult with an attorney about your options.

Do not be afraid to pick up the phone and call us for a free consultation at 1-800-984-9951, even if you have already begun the claims process! Our attorneys can join in the process at any time to assist you in protecting your rights. An insurance company may request a Neutral Evaluation or Examination Under Oath ("EUO") as part of its adjusting of your claim. If you are in the process of making a claim and are unrepresented and either one of those events comes up in the course of the insurance company's investigation, do not hesitate to pick up the phone and call us to discuss your options. We are here to help.