The Florida Senate

627.7073  Sinkhole reports.--

(1)  Upon completion of testing as provided in s. 627.7072, the professional engineer or professional geologist shall issue a report and certification to the insurer and the policyholder as provided in this section.

(a)  Sinkhole loss is verified if, based upon tests performed in accordance with s. 627.7072, a professional engineer or a professional geologist issues a written report and certification stating:

1.  That the cause of the actual physical and structural damage is sinkhole activity within a reasonable professional probability.

2.  That the analyses conducted were of sufficient scope to identify sinkhole activity as the cause of damage within a reasonable professional probability.

3.  A description of the tests performed.

4.  A recommendation by the professional engineer of methods for stabilizing the land and building and for making repairs to the foundation.

(b)  If sinkhole activity is eliminated as the cause of damage to the structure, the professional engineer or professional geologist shall issue a written report and certification to the policyholder and the insurer stating:

1.  That the cause of the damage is not sinkhole activity within a reasonable professional probability.

2.  That the analyses and tests conducted were of sufficient scope to eliminate sinkhole activity as the cause of damage within a reasonable professional probability.

3.  A statement of the cause of the damage within a reasonable professional probability.

4.  A description of the tests performed.

(c)  The respective findings, opinions, and recommendations of the professional engineer or professional geologist as to the cause of distress to the property and the findings, opinions, and recommendations of the professional engineer as to land and building stabilization and foundation repair shall be presumed correct.

(2)(a)  Any insurer that has paid a claim for a sinkhole loss shall file a copy of the report and certification, prepared pursuant to subsection (1), including the legal description of the real property and the name of the property owner, with the county clerk of court, who shall record the report and certification. The insurer shall bear the cost of filing and recording the report and certification. There shall be no cause of action or liability against an insurer for compliance with this section. The recording of the report and certification does not:

1.  Constitute a lien, encumbrance, or restriction on the title to the real property or constitute a defect in the title to the real property;

2.  Create any cause of action or liability against any grantor of the real property for breach of any warranty of good title or warranty against encumbrances; or

3.  Create any cause of action or liability against any title insurer that insures the title to the real property.

(b)  The seller of real property upon which a sinkhole claim has been made by the seller and paid by the insurer shall disclose to the buyer of such property that a claim has been paid and whether or not the full amount of the proceeds were used to repair the sinkhole damage.

History.--s. 21, ch. 2005-111; s. 28, ch. 2006-12.