Disclosure of Denial of Property Insurance based on Location

[CSwofford147@comcast.net]

When you are purchasing property from the Villages in the Villages as a out of state buyer. Everyone involved in the realty transaction except the out of state buyer is well aware of the fact that the location of the property being purchased determines whether Sinkhole insurance can be purchased. The address is put into a insurance data base and a Sinkhole Index score is given to the property based on its proximity to ground subsidence activity. There are very few property's to my knowledge in the Villages that receive a passing score. The denial of insurance based on the location is known fact. It would seem that given the financial exposure involved that the buyer will have, it would be not only extremely important fact but a material fact that should be disclosed to the buyer so that the buyer could make informed decision based on the facts to purchase real property. This information was not provide to me in my purchase of real property in the Villages. I would very much like to hear other people in the Villages experiences concerning disclosure of information as to the insurability of there property and there comments as to whether it was disclosed to them if there property was uninsurable based on its location.

[784caroline]

Just curious did you buy new or a resale?? Who would you expect should give you such information? I suspect most people living in TV dont even know such data exists.

Could one be denied sinkhole coverage (gradual) becuase the firm no longer offers it in your area as opposed to being specifically singled out! Only catestrophic ground cover collapse is required by law, and every property owner who has homeowers coverage gets this. Insurance companies are not required (by law) to provide Sinkhole (gradual) coverage.

[Marlo]

When you are purchasing property from the Villages in the Villages as a out of state buyer. Everyone involved in the realty transaction except the out of state buyer is well aware of the fact that the location of the property being purchased determines whether Sinkhole insurance can be purchased. The address is put into a insurance data base and a Sinkhole Index score is given to the property based on its proximity to ground subsidence activity. There are very few property's to my knowledge in the Villages that receive a passing score. The denial of insurance based on the location is known fact. It would seem that given the financial exposure involved that the buyer will have, it would be not only extremely important fact but a material fact that should be disclosed to the buyer so that the buyer could make informed decision based on the facts to purchase real property. This information was not provide to me in my purchase of real property in the Villages. I would very much like to hear other people in the Villages experiences concerning disclosure of information as to the insurability of there property and there comments as to whether it was disclosed to them if there property was uninsurable based on its location.
Nothing was mentioned to us about this either. Quite honestly it would probably made a difference in our purchasing property here, but of course that's why it is not mentioned I'm sure.

[Rango]

I was told by insurance co. that if there was a sink hole within a mile of the property, they would not insure it.

[theorem painter]

[QUOTE=784caroline;873714]Just curious did you buy new or a resale?? Who would you expect should give you such information? I suspect most people living in TV dont even know such data exists.

The question regarding this issue is on the seller disclosure form that the buyer receives prior to closing. We were told when we got our home owners insurance that we could apply for sink hole insurance but if it was denied (and probably would have been based on sink holes within a 5 mile radius) that this would be disclosable information. In other words, if we sold our house we would have to tell the buyer that we were denied sink hole coverage even though we had never had an issue with sink holes. When an insurance agent tells me not to apply for coverage, I listen.

[Bogie Shooter]

Nothing was mentioned to us about this either. Quite honestly it would probably made a difference in our purchasing property here, but of course that's why it is not mentioned I'm sure.

Would you have purchased somewhere else in Florida? You do know sinkholes are everywhere.

[RickdeMasi]

It seems to me that if a bank issues a mortgage to a Village homeowner the bank is culpable as well. If the catastrophic clause doesn't kick in, the homeowner could be responsible for a repair that would make it difficult to keep up with a mortgage payment. See no evil, speak no evil...

[Bogie Shooter]

Hasn't this all been covered in great detail and opinion here??
https://www.talkofthevillages.com/forums/villages-florida-general-discussion-73/sinkhole-versus-112760/
https://www.talkofthevillages.com/forums/villages-florida-general-discussion-73/sinkhole-activity-merida-circle-112983/
https://www.talkofthevillages.com/forums/villages-florida-general-discussion-73/pinellas-place-sinkhole-76166/

[Carla B]

Would you have purchased somewhere else in Florida? You do know sinkholes are everywhere.

There aren't many sinkholes in Palm Beach or Broward County. Lived there for six years and never heard of one.

[OBXNana]

We financed our property in The Villages. Our lender is in Kitty Hawk, NC and the underwriter is in Texas. The underwriter asked if we planned to get sink hole coverage, hurricane, and some other with collapse of land, but not sure of the exact term. None were required as part of our loan approval. We then discussed this with the local insurance company. This option was made available to us and we took the coverage. Our sales person also discussed with us, the types of insurance unique to the region. We were given full disclosure.

We have purchased a few property's in our day in different geographic areas. As an informed buyer, we make sure we know what situation could arise and explore our options. The buyer has to take some responsibility for educating themselves.

[kellyjam]

I was told by insurance co. that if there was a sink hole within a mile of the property, they would not insure it.

I purchased a year ago in the Pinellas. A month before I went to contract there was a sinkhole down the block. When I went to The Villages Insurance in Brownwood I specifically asked about sinkholes and she was very forthcoming. I took the sinkhole insurance and renewed again this year. Deductibles however are 10% of the home's insured value.

[Marlo]

Had I seen the sinkhole map that Gracie had posted before we bought the answer would be no we would not have bought in the Villages or in Florida at all and shame on us for not doing our homework but it never crossed our minds that there would be so many areas affected.

NOW we know sinkholes are everywhere............I also didn't realize if I voiced my opinion/remark to a post on here that I would get sarcasm either. He asked for responses I gave him one. :shrug:

I love our home here, love living here but it is cause for concern.



Would you have purchased somewhere else in Florida? You do know sinkholes are everywhere.

[Bogie Shooter]

Had I seen the sinkhole map that Gracie had posted before we bought the answer would be no we would not have bought in the Villages or in Florida at all and shame on us for not doing our homework but it never crossed our minds that there would be so many areas affected.

NOW we know sinkholes are everywhere............I also didn't realize if I voiced my opinion/remark to a post on here that I would get sarcasm either. He asked for responses I gave him one. :shrug:

I love our home here, love living here but it is cause for concern.

OK.

[Big O]

When you are purchasing property from the Villages in the Villages as a out of state buyer. Everyone involved in the realty transaction except the out of state buyer is well aware of the fact that the location of the property being purchased determines whether Sinkhole insurance can be purchased. The address is put into a insurance data base and a Sinkhole Index score is given to the property based on its proximity to ground subsidence activity. There are very few property's to my knowledge in the Villages that receive a passing score. The denial of insurance based on the location is known fact. It would seem that given the financial exposure involved that the buyer will have, it would be not only extremely important fact but a material fact that should be disclosed to the buyer so that the buyer could make informed decision based on the facts to purchase real property. This information was not provide to me in my purchase of real property in the Villages. I would very much like to hear other people in the Villages experiences concerning disclosure of information as to the insurability of there property and there comments as to whether it was disclosed to them if there property was uninsurable based on its location.


I would like to know what your continued interest in Villages sinkholes is. Do you own property in The Villages? Are you an investor or agent who would stand to gain if everyone was to panic and start selling? Are you a reporter for the Orlando newspaper? Inquiring minds want to know. You have come at this from about three different directions now, what answer are you looking for?

[Challenger]

Nothing was mentioned to us about this either. Quite honestly it would probably made a difference in our purchasing property here, but of course that's why it is not mentioned I'm sure.

Sinkholes, earthquakes, mudslides, Hurricanes, tornados. grass fires, disease, pestilence, wars and rumors of wars. Chicken Little- the sky is falling!. There are over 40,000 homes in TV. Wonder how many have been affected significantly by sinkholes. Understand that a tornado seriously damaged something over 10 homes here just a few years ago

Are these concerns?-- certainly. Should we use good judgement in buying insuring, owning?-Yes Should we be in a panic? IMHO--NO

[gomoho]

I am interested in where you obtained this information and how I could go about getting my rating.

[jnieman]

I worked for an insurance company for 3 years after I moved down here. Quit about a year ago. My job was to do homeowner's and auto insurance quotes. Whenever I would do a homeowner's quote I would do an interview and ask a series of questions to the homeowner. After I put the info in the insurance database I would get a popup on my screen telling me how far the property is from a sinkhole. Anyone can get a quote on a property if they are thinking of buying it. Just call an agent and give them the address and details of the property. You could ask them then how far the property is from a sinkhole and if sinkhole coverage is available. I wouldn't see any reason they wouldn't tell you.

[Bogie Shooter]

I would like to know what your continued interest in Villages sinkholes is. Do you own property in The Villages? Are you an investor or agent who would stand to gain if everyone was to panic and start selling? Are you a reporter for the Orlando newspaper? Inquiring minds want to know. You have come at this from about three different directions now, what answer are you looking for?

Seems like a good question. 14 posts and 12 are sink hole topic.
https://www.talkofthevillages.com/forums/search.php?searchid=8338979

[rjm1cc]

When you are purchasing property from the Villages in the Villages as a out of state buyer. Everyone involved in the realty transaction except the out of state buyer is well aware of the fact that the location of the property being purchased determines whether Sinkhole insurance can be purchased. The address is put into a insurance data base and a Sinkhole Index score is given to the property based on its proximity to ground subsidence activity. There are very few property's to my knowledge in the Villages that receive a passing score. The denial of insurance based on the location is known fact. It would seem that given the financial exposure involved that the buyer will have, it would be not only extremely important fact but a material fact that should be disclosed to the buyer so that the buyer could make informed decision based on the facts to purchase real property. This information was not provide to me in my purchase of real property in the Villages. I would very much like to hear other people in the Villages experiences concerning disclosure of information as to the insurability of there property and there comments as to whether it was disclosed to them if there property was uninsurable based on its location.

This might be of interest
FGS, Subsidence Incident Reports disclaimer (http://www.dep.state.fl.us/geology/geologictopics/sinkhole/sink_dis_excel.htm)

[Xavier]

When you are purchasing property from the Villages in the Villages as a out of state buyer. Everyone involved in the realty transaction except the out of state buyer is well aware of the fact that the location of the property being purchased determines whether Sinkhole insurance can be purchased. The address is put into a insurance data base and a Sinkhole Index score is given to the property based on its proximity to ground subsidence activity. There are very few property's to my knowledge in the Villages that receive a passing score. The denial of insurance based on the location is known fact. It would seem that given the financial exposure involved that the buyer will have, it would be not only extremely important fact but a material fact that should be disclosed to the buyer so that the buyer could make informed decision based on the facts to purchase real property. This information was not provide to me in my purchase of real property in the Villages. I would very much like to hear other people in the Villages experiences concerning disclosure of information as to the insurability of there property and there comments as to whether it was disclosed to them if there property was uninsurable based on its location.

As my opinion has not changed, this is a reprint of my response to an earlier post of yours:

Charles,

I don't know you from Adam, but I do know that you are like a dog with a bone when it comes to Sink Holes. Please consider giving it a rest! If you have a problem with Sink Hole Insurance or the lack there of, do something about it. Run for the State Assembly, write your representatives, whatever. Please stop trying to scare the bejesus out of people. The sky is NOT falling! You are doing no good except causing some of those more susceptible to these tactics to lose sleep. In my opinion you would be much better off taking up a hobby and let it be not crusading about something you currently have no power to change. If you are indeed serious about this matter, do something constructive. Well, that's my two cents.

Good meaning people who response to this paranoia only encourage more of the same. The "Ignore List" is a VERY useful tool.

Xavier

[Bogie Shooter]

As my opinion has not changed, this is a reprint of my response to an earlier post of yours:

Charles,

I don't know you from Adam, but I do know that you are like a dog with a bone when it comes to Sink Holes. Please consider giving it a rest! If you have a problem with Sink Hole Insurance or the lack there of, do something about it. Run for the State Assembly, write your representatives, whatever. Please stop trying to scare the bejesus out of people. The sky is NOT falling! You are doing no good except causing some of those more susceptible to these tactics to lose sleep. In my opinion you would be much better off taking up a hobby and let it be not crusading about something you currently have no power to change. If you are indeed serious about this matter, do something constructive. Well, that's my two cents.

Good meaning people who response to this paranoia only encourage more of the same. The "Ignore List" is a VERY useful tool.

Xavier

:BigApplause: