[thomas47]

As a new villager who has just recently purchased a resale home, I was informed by 2 insurance companies that I have a 99.9 % chance of being denied sink hole insurance. The story goes you hire an engineering firm who comes out and examines the interior and exterior of your home. All ok go to step 2. Step 2 they then look at a 3 or 5 mile radius of your home and determine if there has been any suspect activity ( such as St. James Village) at this step 99.9% of sink hole applicants are denied insurance for there pre-owned homes. If your real estate agent is not telling you this you;d better ask up front. Talahassee needs to get involved if this is going on in the villages. Any one else having this problem? Let's get to the bottom of this and see if the insurance industry is acting in good faith and within the law.

[justjim]

Originally Posted by thomas47

As a new villager who has just recently purchased a resale home, I was informed by 2 insurance companies that I have a 99.9 % chance of being denied sink hole insurance. The story goes you hire an engineering firm who comes out and examines the interior and exterior of your home. All ok go to step 2. Step 2 they then look at a 3 or 5 mile radius of your home and determine if there has been any suspect activity ( such as St. James Village) at this step 99.9% of sink hole applicants are denied insurance for there pre-owned homes. If your real estate agent is not telling you this you;d better ask up front. Talahassee needs to get involved if this is going on in the villages. Any one else having this problem? Let's get to the bottom of this and see if the insurance industry is acting in good faith and within the law.

If this is true, it "hurts" our real estate values here in TV. However, everything being equal, if the home was previously insured for sink hole coverage it would be reasonable for it to be insured for sink hole coverage when the property is sold to another party. A different owner should not change the underwriting risk for the insurance company.

[janmcn]

Originally Posted by thomas47

As a new villager who has just recently purchased a resale home, I was informed by 2 insurance companies that I have a 99.9 % chance of being denied sink hole insurance. The story goes you hire an engineering firm who comes out and examines the interior and exterior of your home. All ok go to step 2. Step 2 they then look at a 3 or 5 mile radius of your home and determine if there has been any suspect activity ( such as St. James Village) at this step 99.9% of sink hole applicants are denied insurance for there pre-owned homes. If your real estate agent is not telling you this you;d better ask up front. Talahassee needs to get involved if this is going on in the villages. Any one else having this problem? Let's get to the bottom of this and see if the insurance industry is acting in good faith and within the law.

Tallahassee has been involved. The Florida Legislature is the one writing this legislation that allows insurance companies to create these loopholes.

This topic has been discussed many times on this forum, and sadly will only get worse. If sink hole insurance is important to buyers, they need to make it a contingency in their offer to purchase. However, as you stated, it is not available in 99.9% of cases.

Though not specific to sinkhole insurance, this article from today's newspaper reports what the legislature is working on today.


Property insurance rates could go through roof under Senate bill | Tampa Bay Times

[thomas47]

Originally Posted by justjim

If this is true, it "hurts" our real estate values here in TV. However, everything being equal, if the home was previously insured for sink hole coverage it would be reasonable for it to be insured for sink hole coverage when the property is sold to another party. A different owner should not change the underwriting risk for the insurance company.

Exactly, this house is less than 1 year old and had sink hole coverage by the original owners. Now I;m ready to close on the 17 of May and can't get coverage, Something smells

[thomas47]

Originally Posted by janmcn

Tallahassee has been involved. The Florida Legislature is the one writing this legislation that allows insurance companies to create these loopholes.

This topic has been discussed many times on this forum, and sadly will only get worse. If sink hole insurance is important to buyers, they need to make it a contingency in their offer to purchase. However, as you stated, it is not available in 99.9% of cases.

Though not specific to sinkhole insurance, this article from today's newspaper reports what the legislature is working on today.


Property insurance rates could go through roof under Senate bill | Tampa Bay Times

This article deals with rate increases, We all know there only going to go up it's just by how much. What I'm talking about is denial of insurance regardless of rate amount. There' s something wrong here. How can they deny it and why isn't the real estate people here in the villages informing their clients of this?

[rockyisle]

We purchased our re-sale home 2 years ago and never had a problem getting all hazard insurance. If you haven't talked with the insurance agents in Sumter Landing, call them tomorrow. My brother just purchased a re-sale as well and has it.

[graciegirl]

Originally Posted by thomas47

Exactly, this house is less than 1 year old and had sink hole coverage by the original owners. Now I;m ready to close on the 17 of May and can't get coverage, Something smells

Please go up to search. Type in sinkhole coverage. or sinkhole insurance. It has been discussed many times.There was a new law passed in January and it makes it danged near impossible to get sinkhole insurance on a resale. It is NOT just in The Villages. It is in Florida

Another Sinkhole Insurance thread

The Saga of Sinkhole Insurance in Florida - Law Firm Williams Law Association, P.A. Attorneys Tampa, Florida

WE also have tornadoes, alligators, and this is the lightning capital of Florida. Just so you know.

[784caroline]

To clarify (I hope), Gracie is talking about sinkhole insurance related to gradual damage associated with sinkhole acitivty......NOT catistrophic sinkhole coverage which every policy in Florida should have.

[graciegirl]

Originally Posted by 784caroline

To clarify (I hope), Gracie is talking about sinkhole insurance related to gradual damage associated with sinkhole acitivty......NOT catistrophic sinkhole coverage which every policy in Florida should have.

That is right and thank you my friend, for the correction.

[howardandsheila]

as it was explained to me, I could not get sinkhole insurance on the pre owned I just purchased, but I am covered for a "catastrophic ground collapse" IF the county condemns the house as uninhabitable. Decided I just don't want to worry about it. Statistics are on my side.

I don't have elephant stampede insurance either, but a man in Sumter Square sold me some elephant repellent and it has worked since ever since I sprinkled it all over the lawn. As a matter of fact, it keeps them away from my neighbor's yard too.

[sirknor]

My agent told me sinkhole insurance is available only to the original owner. I have it. But if i cancel it i don't think i can get it back.

[gustavo]

Originally Posted by sirknor

My agent told me sinkhole insurance is available only to the original owner. I have it. But if i cancel it i don't think i can get it back.

I had sinkhole coverage for two years as a new owner. My renewal this year will not include the sinkhole coverage. It cost $138/yr but there was a $40,000 deductible, so all being said, I don't need or want the coverage as I'm sure I can fix minor problems related to sinkholes with $40k and if its more than that the catastrophic ground collapse coverage will probably cover the damage.

[Mack184]

Originally Posted by 784caroline

To clarify (I hope), Gracie is talking about sinkhole insurance related to gradual damage associated with sinkhole acitivty......NOT catistrophic sinkhole coverage which every policy in Florida should have.

Yes, she is. Also to the poster who said that the state needed to be involved, the state legislature is responsible for this when they passed insurance "reform" in the fall of 2011 which then took effect on 1/1/2012. Even NEW builds are effected depending on where you live and who your insurance carrier is. This is NOT a rumor, it is the truth. Your insurance agent can educate you about this, and you SHOULD get educated on these new laws.

[Mack184]

Originally Posted by sirknor

My agent told me sinkhole insurance is available only to the original owner. I have it. But if i cancel it i don't think i can get it back.

You can't if you drop it.

[gustavo]

Originally Posted by thomas47

.... The story goes you hire an engineering firm who comes out and examines the interior and exterior of your home. All ok go to step 2. Step 2 they then look at a 3 or 5 mile radius of your home and determine if there has been any suspect activity ( such as St. James Village) at this step 99.9% of sink hole applicants are denied insurance for there pre-owned homes. ...

My insurance co told me the cost of the inspection was $140, they would pay half. I decided I don't need sinkhole coverage with a $40k deductible.