HB 17A

1	A bill to be entitled
2	An act relating to sinkhole insurance; amending s.
3	627.706, F.S.; revising sinkhole insurance provisions to
4	include coverage for losses due to catastrophic ground
5	cover collapse; revising definitions; providing an
6	effective date.
7
8	Be It Enacted by the Legislature of the State of Florida:
9
10	Section 1.  Subsections (1) and (2) of section 627.706,
11	Florida Statutes, are amended to read:
12	627.706  Sinkhole insurance; definitions.--
13	(1)  Every insurer authorized to transact property
14	insurance in this state shall make available coverage for
15	insurable sinkhole losses on any structure, including contents
16	of personal property contained therein, resulting from a
17	catastrophic ground cover collapse to the extent provided in the
18	form to which the sinkhole coverage attaches. A policy for
19	residential property insurance may include a deductible amount
20	applicable to sinkhole losses equal to 1 percent, 2 percent, 5
21	percent, or 10 percent of the policy dwelling limits, with
22	appropriate premium discounts offered with each deductible
23	amount.
24	(2)  As used in ss. 627.706-627.7074, and as used in
25	connection with any policy providing coverage for sinkhole
26	losses resulting from a catastrophic ground cover collapse:
27	(a)  "Catastrophic ground cover collapse" means geological
28	activity that, within a period of 7 days or less, results in the
29	collapse of the ground cover that renders the insured structure
30	uninhabitable. The term "catastrophic ground cover collapse"
31	does not include ground cover subsidence caused when, during a
32	period exceeding 7 days, the upper surface of limestone is
33	dissolved away and the ground cover slowly subsides to occupy
34	the space once occupied by limestone.
35	(b)  "Sinkhole Loss" means structural damage to a structure
36	or the building, including the foundation, caused by a
37	catastrophic ground cover collapse or sinkhole activity.
38	Contents coverage shall apply only if there is structural damage
39	to a structure or the building caused by a catastrophic ground
40	cover collapse or sinkhole activity. Structural damage
41	consisting merely of the settling or cracking of a foundation,
42	structure, or building does not constitute a loss resulting from
43	a catastrophic ground cover collapse or sinkhole activity.
44	(c)(d)  "Professional engineer" means a person, as defined
45	in s. 471.005, who has a bachelor's degree or higher in
46	engineering with a specialty in the geotechnical engineering
47	field. A professional engineer must have geotechnical experience
48	and expertise in the identification of sinkhole activity as well
49	as other potential causes of damage to the structure.
50	(d)(e)  "Professional geologist" means a person, as defined
51	by s. 492.102, who has a bachelor's degree or higher in geology
52	or related earth science with expertise in the geology of
53	Florida. A professional geologist must have geological
54	experience and expertise in the identification of sinkhole
55	activity as well as other potential geologic causes of damage to
56	the structure.
57	(e)(a)  "Sinkhole" means a depression in the ground cover,
58	visible to the naked eye, landform created by subsidence of
59	soil, sediment, or rock as underlying strata are dissolved by
60	groundwater. A sinkhole may form by collapse into subterranean
61	voids created by dissolution of limestone or dolostone or by
62	subsidence as these strata are dissolved.
63	(f)(c)  "Sinkhole activity" means settlement or systematic
64	weakening of the earth supporting such property only when such
65	settlement or systematic weakening results from movement or
66	raveling of soils, sediments, or rock materials into
67	subterranean voids created by the effect of water on a limestone
68	or similar rock formation.
69	(g)  "Uninhabitable" means condemned and ordered vacated by
70	the governmental agency charged with making such findings and
71	issuing such orders in the county in which the insured structure
72	is located.
73	Section 2.  This act shall take effect upon becoming a law.

CODING: Words stricken are deletions; words underlined are additions.