Another Big Win for Policyholders: Florida Federal Court Rules Against Liberty Mutual's
If you work on sinkhole claims in Florida, then you are aware of the consequences of Senate Bill 408, which became law on May 17, 2011. Senate Bill 408 substantially diminished sinkhole coverage in Florida by providing that sinkhole coverage no longer exists, unless the sinkhole activity causes “structural damage” under one of five highly technical definitions. Insurance carriers, including Tower Hill Select Insurance Company, Liberty Mutual Fire Insurance Company, St. Johns Insurance Company, Universal Property and Casualty Insurance Company, and Olympus Insurance Company, immediately pounced on the idea that they could deny sinkhole claims without even testing properties for sinkhole activity. For months, these carriers denied claims on policies in effect prior to SB 408’s effective date without testing the properties for sinkhole activity.
