State Farm Florida Insurance Co. v. Phillips

State Farm Florida Insurance Company appeals the trial court’s order requiring it to pay replacement costs for subsurface sinkhole repairs before its insureds, Fred and Carol Phillips, contracted for the necessary repairs. We reverse.

The facts are not in dispute. In July 2010, State Farm issued the Phillipses a homeowner’s insurance policy that contained a general loss payment clause as well as a separate sinkhole and catastrophic ground cover collapse coverage clause. The general loss payment clause reads, in pertinent part:

8. Loss Payment. We will adjust all losses with you. We will pay you…