Travelers - Sinkhole Coverage

[villages07]

I am coming up on my 2nd anniversary owning here. I got my homeowners insurance renewal notice from Travelers. This year, they have dropped sinkhole coverage as a standard insured item. If you want it, you have to pay for it as an extra coverage.

The coverage costs $102/year (on top of current full premium of about $800 per year). It contains a 10% deductible....so, if your house is insured for $300K, you have to pay the first $30K of damage.

To my knowledge, there have been no sinkhole problems in my area just south of Sumter Landing. The ground is flat and stable and no water sources nearby (no, I haven't really done research on what makes something prone to sinkholes).

I'm leaning towards not signing up for this new optional coverage. But, I am interested in hearing from others who have faced this same decision and understanding why you made the choice that you did.

Thanks.

[jeffy]

I am in the exact same situation with renewing with travelers. I do plan on taking the additional coverage.

jeffy

[Sidney Lanier]

We just converted our renters policy to a standard homeowners policy, also with Travelers, since it became clear to use that we're having too much fun when we are in TV to consider renting, and we opted for sinkhole coverage. We tend to be 'insurance-compulsive'....

[GatorFan]

I bought a home policy at the McDonald Agency/Allstate on 441 just North of Wal-Mart-sinkhole included with standard ded of $ 1000.00. Also, they advised me to remove my golf cart from homeowner's policy ( $ 60.00 year for separate policy ) Premium lower than Travelers. 347-9201

[SteveFromNY]

We just signed up for improved insurance, and talked to the agent about sink hole coverage. He emphasized that typical sinkhole damage was more about cracks in walls and foundations than it was about the rare, giant, home swallowing holes that make the news. It didn't sound like the typical damage was rare at all. I really thought the risk of damage was higher than it seems to be.

[zcaveman]

I received my renewal policy in the mail about a month ago. A week later I received a revised policy that was $90 more. After two times through, I figured out that they added sinkhole insurance. I called and asked what it was all about and they said that I must have requested it. I said No and they said they would remove it. I asked "was it a good thing" and I kind of liked the answer so I told them to leave it. After I get a chance to really diagnose it I might drop it next year.

[Sidney Lanier]

Just checked with our agent. We do indeed have sinkhole coverage and it does cost about $100/year. However, the deductible is the same for any losses, including sinkhole, on our policy: $500. Hope this helps.

[GatorFan]

http://www.dep.state.fl.us/geology/feedback/faq.htm#15

Maybe above can help in making a decision to drop sinkhole coverage. For me, having sinkhole is as important as having wind coverage in Florida.

[villages07]

Thanks, all, for your comments. Actually, I will probably ensure that I have continuing coverage for sinkholes. But, I am going to shop around. When I first got Travelers, they would only do the hurricane deductible at a % of your insured valued, with 2% being the minimum. Now, with this 10% sinkhole deductible.....it just doesn't sound like they offer the optimum coverage/rates.

Sid..you have Travelers and your hurricane deductible is $500???? They told me 2 yrs ago and again last year that they only do minimum of 2% deductible not a fixed deductible.

Gator...thanks for the tip on Allstate. I'll give them a call as well as Villages Insurance and see if something better crops up.

[railroader12]

village07, and all of you thanks for the tip. Just moved into Hemingway, and got the basic I guess fromt the Villages Ins. I'll have to check on the sinkhole thing. However, she did explain that Golf cart coverage was seperate from my Home owners. Thanks again.