Quote:
Originally Posted by bsloan1960
Just wondering if these are a real threat. They significantly increase the premium.
Thanks
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Sink holes can happen anywhere- they have happened several times in The Villages. Most recently, sinks holes impacted a recreation center and golf course. A few years ago, a couple of designer homes were condemned and unlivable until MAJOR $$$$$$ repairs were made.
There are 3 types of insurance- sink hole, catastrophic ground soil collapse and flood.
Catastrophic ground cover collapse coverage is included under your existing home insurance policy- required by law.
However, your claim must meet four requirements before your insurance company will reimburse you for the loss:
1). The abrupt collapse of the ground cover;
2). A depression in the ground cover clearly visible to the naked eye;
3). Structural damage to the insured building, including the foundation; and
4). The insured structure being condemned and ordered to be vacated by the governmental agency authorized by law to issue such an order for that structure.
So you need sink hole to cover any damage that doesn’t meet all 4 criteria.
Hurricane insurance covers damage caused by winds and flood insurance covers damage caused by flooding/rain. Example- if the sewer backs up into your home due to a flooding issue damaging, flood insurance would cover that.
If you have unlimited funds and would have no problem covering anywhere from $15,000 up to well over $100,000+++, then maybe you don’t need.
I have enough funds to live a wonderful life in retirement here in The Villages but not enough to cover these large dollar items, so I have all 3 types of insurance.