Sinkhole insurance continigency clauses in real estate contracts

[CSwofford147@comcast.net]

I have heard from different people in the Villages and Florida realtors as opposed to real estate associates that there has been problems in the Villages with not disclosing if a resale property can obtain sinkhole insurance. After talking to many people in the Villages they all have said that the fact that a property is uninsurable based on its location is something that they feel strongly should be disclosed in a realty transaction. It is my understanding that this is not happening and that people are finding out after they have purchased property when they try to get sinkhole insurance that the property is uninsurable. This has been happening much more with sales associates than with licensed Florida Realtors who have much stricter disclosure requirements than sales associates. If it is known by location that a property is uninsurable then everyone I have talked with feels that they should be informed under disclosure laws. I would like to know what kind of experiences other Villagers have had with this Problem. Florida Realtors are recommending that people put sinkhole insurance contingency clauses into there real estate purchase contracts and have the sale of the property contingent on the property passing a sinkhole insurance inspection. If the property does not pass the inspection then there is no sale. This is to prevent the lack of disclosure of this problem

[Big O]

How many times are you going to post this?

[Villageshooter]

these are great editorials , however there comes a time when !

[jwscp@aol.com]

If all the property owners in the Villages put $500. in a fund, we could create our own insurance policy and The Villages would be the best place to buy in Florida. $500 times 50,000 equals 25 million. I am sure that this amount would cover sinkholes in the future.

[NotGolfer]

Really? Me-thinks this OP has some kind of fixation with sink-hole catastrophies....or maybe too much time on his hands!

[graciegirl]

I have heard from different people in the Villages and Florida realtors as opposed to real estate associates that there has been problems in the Villages with not disclosing if a resale property can obtain sinkhole insurance. After talking to many people in the Villages they all have said that the fact that a property is uninsurable based on its location is something that they feel strongly should be disclosed in a realty transaction. It is my understanding that this is not happening and that people are finding out after they have purchased property when they try to get sinkhole insurance that the property is uninsurable. This has been happening much more with sales associates than with licensed Florida Realtors who have much stricter disclosure requirements than sales associates. If it is known by location that a property is uninsurable then everyone I have talked with feels that they should be informed under disclosure laws. I would like to know what kind of experiences other Villagers have had with this Problem. Florida Realtors are recommending that people put sinkhole insurance contingency clauses into there real estate purchase contracts and have the sale of the property contingent on the property passing a sinkhole insurance inspection. If the property does not pass the inspection then there is no sale. This is to prevent the lack of disclosure of this problem


This is the OP's 11th thread about this subject. I have lived here for almost seven years and religiously read this forum and have heard no such rumor.

Such a negative rumor would only benefit the MLS real estate people and makes one think that is a possible agenda of the OP. When sinkholes are a possibility in an area it is much like the situation in California where earth quakes are a general possibility. The possibility of a sinkhole is generally not predictable even with geologic tests.

Just wondering what is the benefit to continuously harp on this point?

A mortgage lender requires a homeowners policy which has catastrophic included.

Why this witchhunt? Is the OP looking for a way to sue the rich developer?

[OBXNana]

If sink hole insurance is required and if the buyer is obtaining a loan to purchase the property, a loan will not be given for a property that is required to have insurance and coverage can not be obtained.

Sink holes appear to be important to the poster. Rather than posting on a forum where people may not be knowledgeable on the subject, begin doing research by working with professionals. Geologists that can explain the rock formation and the possibility of future sink holes. Insurance company's that can explain the policy on insurance in the 3 county's and if property is insurable or can not be insured. Have them further explain why or why not. Once this knowledge is fully explored and known, go to the different groups that sell property in The Villages to request full disclosure on the form.

Talk of the villages folks are a blend of much knowledge. For the most part, the area the poster is interested should be put in the hands of the professionals getting to the root of the issue. Once there are actual, documented facts I think everyone would be interested in the results.

What other areas could this poster explore to fully educate us all? As he works on this, the frustration his posts are creating will stop. Lets help him go in the right direction to get the answers he needs. This forum is not the place.

On another sink hole issue, since March, 9 houses have been condemned in the city of Harrisburg, PA due to sink holes. This is a depressed city on the verge of bankruptcy. On the news this morning, the city is paying to find out what is going on to see if things can be corrected. Has the poster checked with local government to see what they are doing to figure out the problem? The developer, love him or hate him, is not in the picture. Just like whoever built the houses in Harrisburg. Nobody is going back to the developer to have them solve the problem.

[quirky3]

Give it a rest!

Don't ask Villagers to provide your raw material for appearing on 60 minutes.

Enough is enough!

[redwitch]

Your house is insurable. It may not be insurable for sinkhole coverage, but that's an entirely different issue. In California, getting earthquake insurance (moving earth, including mudslides) is cost prohibitive if obtainable at all but all policies come with catastrophic insurance. So, you hoped that if an earthquake or mudslide damaged your home, it would be declare permanently uninhabitable. More than one Californian is of the opinion that if their home is damaged, tossing a match onto an open gas line is a perfectly reasonable "fix" since that would be covered (provided there was no proof of arson).

So, while you might be upset to learn you don't have sinkhole coverage, I doubt you have a cause of action for lack of disclosure, let alone a class action suit. Unless you specifically asked about sinkhole coverage (and got that in writing, not just he said/she said), you're SOL.

Please give it up. I sincerely doubt you're ever going to get the answer you want because the responsibility was on you to check with an insurance agent before you purchased.