[outlaw]

Originally Posted by tbone

I recently visited the Villages for the third time this last February and March and looked at homes with the intent of purchasing one. My wife was enamored with the Villages, and we made an offer on a property in Spanish Springs.

While discussing insurance coverage with several insurance agents, it became evident that there is the potential of substantial out of pocket expenses if one is unfortunate enough to have a sinkhole on their property. Florida catastrophic coverage (included with standard Florida policies) does offer some protection, but certain conditions must apply including direct damage to a property by a visible sinkhole.

Possible exposure exists in the event a homeowner does not have non-catastrophic coverage, an optional endorsement added to a standard insurance policy. I received ballpark quotes of $300-$500/year for this coverage, but found that the home made an offer on was NOT eligible for this coverage. (Even if they purchase from an owner that has it in effect on the property they are purchasing and have grandfathered coverage.

It appears that most homes in the Villages are not eligible for this coverage on newly purchased homes, with the exception of zip code 32163 for homes built from 2013-present. Note: that information comes from The Villages Insurance Agency. AAA may offer more options, and recently, Florida's Governor signed a bill allowing for stand-alone non-catastrophic sinkhole coverage to be offered by insurance companies beginning in July.

I'm told that there will not be rush by insurers to enter the market.

So, in summary:

If your home is damaged by a visible sinkhole and condemned, etc., you probably have coverage under a standard homeowner's policy.

If no sinkhole is visible, just cracks in the walls, foundation, doors and windows that don't open, etc., if you have non-catastrophic endorsement, you have a 10% deductible (10% of the basic policy building coverage) before the insurance pays. On a $300,000 home, this would mean $30,000 out of pocket before the insurance kicks in. If you don't have the optional endorsement, you are on your own for the entire repair.

Now, here's another exposure I see that is not discussed very frequently. What happens if a sinkhole opens up on the corner of your property and is not within the confines of your dwelling's footprint? It appears to me that the exposure is entirely the Homeowner's responsibility. That could be VERY EXPENSIVE. (I read somewhere that the average sinkhole claim is over $80,000.)

To help prospective homeowners (and current owners) I have put together a list of internet links to various news articles and reference sources.

I've attached the pdf document to this post. Enjoy!

Thanks for the attached info. You are new here, so brace yourself. You will probably be called a scaremonger and questioned about your motives for just bringing up the subject of sinkholes in TV. Good luck.