This opinion was issued today by the First District Court of Appeal (1st DCA). This opinion potentially impacts insurers authorized to transact property insurance in Florida in connection with existing and future sinkhole loss coverage endorsement filings. A link to the case is below.
Florida Farm Bureau Casualty Insurance Company and Florida Farm Bureau General Insurance Company v. State of Florida, Office of Insurance Regulation. Florida Office of Insurance Regulation (FOIR) order disapproving insurer’s sinkhole loss coverage endorsement that limited sinkhole loss coverage to 25% of the overall coverage amount for the insured dwelling was affirmed. The FOIR concluded that section 627.706(1), Fla. Stat., which provides that insurers must “make available … coverage for sinkhole losses on any structure … to the extent provided in the form to which the coverage attaches,” means that insurers must offer sinkhole loss coverage in an amount equal to the dwelling coverage limit, not at some lesser amount. The 1st DCA held that the FOIR’s interpretation is not clearly erroneous, and therefore is entitled to deference. The Court noted that, when read as a whole, section 627.706(1) ties deductibles to coverage limits in the base policy, and therefore it is reasonable to interpret the statute as intending that the amount of sinkhole loss coverage be the same as the amount of coverage provided for in the base policy.
The opinion is not final until the time to file a motion for rehearing expires, which is 15 days from the date the opinion is issued, unless a motion for rehearing is filed and denied or decided.
©2026 Carlton Fields, P.A. Carlton Fields practices law in California through Carlton Fields, LLP. Carlton Fields publications should not be construed as legal advice on any specific facts or circumstances. The contents are intended for general information and educational purposes only, and should not be relied on as if it were advice about a particular fact situation. The distribution of this publication is not intended to create, and receipt of it does not constitute, an attorney-client relationship with Carlton Fields. This publication may not be quoted or referred to in any other publication or proceeding without the prior written consent of the firm, to be given or withheld at our discretion. To request reprint permission for any of our publications, please use our Contact Us form via the link below. The views set forth herein are the personal views of the author and do not necessarily reflect those of the firm. This site may contain hypertext links to information created and maintained by other entities. Carlton Fields does not control or guarantee the accuracy or completeness of this outside information, nor is the inclusion of a link to be intended as an endorsement of those outside sites.
