Foundation Damage Insurance Claims in Hollywood, FL

Foundation damage is among the most serious and costly property losses a homeowner can face. In Hollywood, Florida, where the subtropical climate, sandy soil composition, and seasonal flooding create unique structural vulnerabilities, foundation claims are both common and frequently disputed by insurance carriers. Understanding how Florida law governs these claims — and what insurers are required to cover — is essential before filing or responding to a denial.

What Causes Foundation Damage in Hollywood, Florida?

Hollywood sits in Broward County, where the underlying geology consists largely of limestone, sand, and porous soil that absorbs and releases moisture with the seasons. This creates conditions that place constant stress on residential and commercial foundations. Common causes of foundation damage in this area include:

• Soil settlement and subsidence — As water drains through sandy soil, voids can form beneath slabs, causing them to sink or crack.
• Hydrostatic pressure — Florida's high water table, particularly during hurricane season, forces water against foundation walls and slabs.
• Tree root intrusion — South Florida's dense vegetation can allow roots to penetrate and disrupt concrete foundations over time.
• Sinkhole activity — While more prevalent in Central Florida, sinkhole-adjacent geological activity does occur in Broward County.
• Storm and flood damage — Tropical storms and hurricanes cause rapid soil saturation, compromising foundation integrity.

Identifying the cause of foundation damage is not just a structural question — it is a legal and insurance coverage question. The origin of the damage determines which policy provisions apply and whether your insurer is obligated to pay.

Florida Insurance Coverage for Foundation Damage

Standard homeowners insurance policies in Florida are governed by the Florida Insurance Code, and coverage for foundation damage depends heavily on the cause of the loss. Florida follows an "open perils" or "all-risk" framework for most HO-3 policies, meaning coverage is presumed unless the insurer can point to a specific exclusion.

Foundation damage caused by a sudden and accidental event — such as a burst pipe beneath the slab or storm-driven flooding — is typically a covered loss. However, insurers routinely attempt to deny foundation claims by characterizing the damage as the result of:

• Long-term settlement or earth movement (often excluded)
• Gradual deterioration or wear and tear
• Poor construction or design defects
• Fungus, rot, or biological growth beneath the slab

Florida law places the burden on the insurer to prove that an exclusion applies after the policyholder establishes a covered loss. Under Sebo v. American Home Assurance Co. (Fla. 2016), Florida courts apply the "concurrent causation" doctrine — meaning if a covered peril and an excluded peril both contribute to a loss, coverage may still be owed. This is particularly significant for Hollywood homeowners dealing with foundation damage that involves both storm water intrusion (covered) and soil settlement (potentially excluded).

Sinkhole Coverage and the Catastrophic Ground Cover Collapse Distinction

Florida law requires insurers to offer sinkhole coverage as an endorsement, and all policies must provide coverage for catastrophic ground cover collapse as a baseline. These are distinct legal categories with important differences for foundation damage claims.

Catastrophic ground cover collapse requires four elements under Florida Statute §627.706: the abrupt collapse of ground cover, a depression visible to the naked eye, structural damage to the building, and the insured structure being condemned. This is a high threshold that excludes many genuine sinkhole-related foundation losses.

Sinkhole coverage, by contrast, covers a broader range of geological activity — including compaction, consolidation, and dissolution of limestone — that causes structural damage. If you purchased sinkhole coverage as an endorsement, you have stronger grounds to pursue foundation damage caused by subsurface movement. Hollywood policyholders should review their declarations page carefully to confirm whether this endorsement is in place before filing.

How Insurance Companies Challenge Foundation Claims in Broward County

Insurance carriers in Florida have become increasingly aggressive in investigating and denying foundation damage claims. In Hollywood and throughout Broward County, common insurer tactics include:

• Retaining engineers who favor exclusions — Insurers often hire engineers who characterize damage as "long-term settlement" rather than a covered sudden event.
• Delayed inspections — Under Florida Statute §627.70131, insurers must acknowledge claims within 14 days and pay or deny within 90 days. Delays beyond this timeline can expose the insurer to bad faith liability.
• Underpayment through low estimates — Even when coverage is acknowledged, adjusters may submit repair estimates that fall far short of actual contractor costs in South Florida's expensive construction market.
• Claiming pre-existing damage — Insurers may argue that visible cracks or settling existed before the policy period, shifting the burden to the homeowner to disprove.

When a carrier wrongfully denies or significantly underpays a foundation claim, Florida law provides remedies. Under Florida Statute §624.155, policyholders can file a Civil Remedy Notice and pursue a bad faith action if the insurer fails to cure the violation within 60 days. Successful bad faith claims can result in damages beyond the policy limits, including attorney's fees.

Steps to Protect Your Foundation Damage Claim in Hollywood

Acting quickly and deliberately after discovering foundation damage significantly improves your chances of a successful claim. The following steps apply whether you are filing a new claim or responding to a denial:

• Document everything immediately — Photograph all visible cracks, settling, displaced flooring, door frames, and exterior masonry. Date-stamp all images and save them in multiple locations.
• Hire an independent structural engineer — Do not rely solely on the insurer's engineer. An independent report documenting the cause and extent of damage is critical evidence in any dispute.
• Notify your insurer in writing — Florida law requires prompt notice of claims. Submit written notice as soon as damage is discovered and keep copies of all correspondence.
• Obtain contractor estimates — Get at least two written estimates from licensed Florida contractors experienced in foundation repair. This establishes the actual cost of remediation.
• Review your policy exclusions carefully — Understanding what your specific policy excludes allows you and your attorney to anticipate and counter insurer arguments before they arise.
• Do not accept a denial as final — Florida law gives policyholders significant rights to dispute denials through appraisal, mediation, or litigation.

Foundation claims in Hollywood involve complex technical and legal questions that frequently require professional advocacy. Insurance companies employ experienced legal teams and engineers to minimize payouts — policyholders deserve the same level of representation when their home and financial security are at stake.

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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