I think that the upshot of this is that, when buying a house in The Villages or elsewhere in Florida, you should plan on self-insuring regarding sinkhole damage. (Even if you can get coverage, you are still going to be exposed to a deductible of 10% of the value of the dwelling.). Therefore, you want to be conservative about how much you pay for a house and make sure that you have enough cash or other liquid assets left over to cover repair costs if you have to repair sink-hole damage in the future. In this regard, you need to keep in mind that sink-hole damage in Florida is not a statistically insignificant risk-- which is precisely why insurance companies are withdrawing coverage.
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