Foundation Damage Insurance Claims in Fort Lauderdale

Foundation damage is one of the most financially devastating problems a Florida homeowner can face. In Fort Lauderdale, where the soil composition, seasonal flooding, and subtropical climate create uniquely challenging conditions for structural integrity, foundation claims are more common than many homeowners realize — and more frequently denied by insurance carriers. Understanding your rights under Florida law and how to effectively pursue a foundation damage claim can mean the difference between a full recovery and bearing tens of thousands of dollars in out-of-pocket repair costs.

Why Foundation Damage Is Common in Fort Lauderdale

Fort Lauderdale sits on a limestone bedrock overlaid with sandy, porous soil that is highly susceptible to erosion, shifting, and saturation. The city's proximity to the Atlantic Ocean and its extensive canal system means groundwater levels fluctuate significantly throughout the year. During the wet season — June through October — heavy rainfall can cause soil expansion and hydrostatic pressure against foundation walls. In the dry season, soil contraction can leave voids beneath slabs, causing them to settle or crack.

Common causes of foundation damage in Broward County include:

• Sinkhole activity — Florida leads the nation in sinkhole occurrences, and Broward County properties are not immune
• Plumbing leaks — A slow slab leak can erode the soil beneath a concrete foundation over months or years
• Storm surge and flooding — Fort Lauderdale's low elevation makes flooding a persistent threat that can undermine foundations
• Tree root intrusion — South Florida's aggressive root systems from ficus, banyan, and royal poinciana trees can fracture foundation slabs
• Soil compaction failures — Improper construction techniques on reclaimed or filled land can lead to long-term settling

What Florida Homeowners Insurance Typically Covers

Florida homeowners insurance policies are governed by Chapter 627 of the Florida Statutes, which sets minimum coverage requirements and regulates how insurers must handle claims. Most standard policies cover sudden and accidental damage — meaning coverage is available when a specific, identifiable event causes the foundation damage. However, insurers routinely exploit policy language to deny or underpay legitimate claims.

Coverage that may apply to foundation damage includes:

• Dwelling coverage (Coverage A) — Covers the structure of the home, including the foundation, when damaged by a covered peril
• Sinkhole coverage — Under Florida law, insurers must offer sinkhole coverage as an endorsement; some policies include it as standard
• Catastrophic ground cover collapse — Mandatory under Florida Statute §627.706, this covers sudden, dramatic sinkhole-related collapses
• Water damage coverage — May apply when foundation damage stems from a sudden pipe burst or appliance failure

What insurers commonly exclude includes gradual deterioration, earth movement (in many policies), and maintenance-related issues. These exclusions are frequently misapplied to deny claims that should rightfully be covered. An insurer calling legitimate storm-related foundation cracking "gradual settling" to avoid payment is a bad faith tactic Florida courts have addressed repeatedly.

How Insurance Companies Dispute Foundation Claims

Insurance carriers defending against foundation claims in Fort Lauderdale use several common strategies to minimize or deny payouts. Recognizing these tactics is the first step in protecting your claim.

Causation disputes are among the most frequent. An insurer may send its own engineer — who has a financial incentive to find an excluded cause — to attribute the damage to settling, soil movement, or poor construction rather than a covered event. These findings frequently contradict the homeowner's own expert analysis.

Policy exclusion misapplication is another common issue. Insurers often cite the earth movement exclusion broadly, even when damage was caused by a covered water intrusion event that secondarily destabilized the soil. Florida courts, however, have held that when a covered peril is the efficient proximate cause of damage, the loss may still be covered even if an excluded peril contributed.

Underpayment through low estimates occurs when an insurer acknowledges partial coverage but issues a repair estimate far below actual remediation costs. Foundation repairs — including slab lifting, underpinning, helical piers, or full foundation replacement — can cost between $15,000 and $100,000 or more depending on the extent of the damage.

Steps to Take After Discovering Foundation Damage in Fort Lauderdale

Acting promptly and strategically after discovering foundation problems significantly improves your chances of a successful claim. Florida Statute §627.70132 requires homeowners to report claims within one year of a hurricane or windstorm event and within two years for non-hurricane property claims. Missing these deadlines can result in forfeiture of coverage.

Take the following steps immediately:

• Document everything — Photograph all visible cracks, settling, and displacement before any repairs are made. Video documentation is even more effective.
• Notify your insurer promptly — File a formal written claim and keep records of all communications, including names, dates, and what was discussed
• Hire an independent structural engineer — Do not rely solely on the insurer's inspector. An independent engineer's report is critical evidence in any disputed claim
• Preserve the damage — Avoid making permanent repairs until the insurer has inspected, unless safety requires immediate action. Temporary stabilization is acceptable and advisable
• Review your complete policy — Look for all applicable endorsements, riders, and exclusions; sinkhole and earth movement provisions vary significantly between policies
• Request the claim file — Florida law gives policyholders the right to obtain documents the insurer relied upon in evaluating or denying the claim

Florida Bad Faith Law and Your Rights Against the Insurer

Florida has some of the strongest insurance bad faith protections in the country. Under Florida Statute §624.155, if an insurer fails to attempt a good faith settlement, misrepresents policy terms, refuses to pay without conducting a proper investigation, or engages in other unfair claims practices, the policyholder may bring a civil remedy action for bad faith.

Before filing a bad faith lawsuit, Florida law requires that the policyholder serve a Civil Remedy Notice (CRN) on the insurer and the Florida Department of Financial Services, giving the insurer 60 days to cure the violation. If the insurer fails to correct the problem within that period, you may proceed with a bad faith claim — which can entitle you to damages beyond the policy limits, including attorney's fees and potentially punitive damages in egregious cases.

Fort Lauderdale homeowners should also be aware of Florida's one-way attorney's fee statute under §627.428, which historically allowed prevailing policyholders to recover attorney's fees from insurers. While recent legislative changes have modified this provision, fee-shifting remains available in certain circumstances and continues to be an important tool for leveling the playing field against well-resourced insurance companies.

Foundation damage claims in Florida are complex, fact-intensive disputes where having experienced legal representation often determines the outcome. From gathering the right engineering evidence to navigating insurer delay tactics and statutory deadlines, an attorney who regularly handles first-party property insurance claims can make a meaningful difference in your recovery.

Need Help? If you have questions about your case, call or text 833-657-4812 for a free consultation with an experienced attorney.

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