Homeowners Ins.: sink hole vs catastrophic?

[Debfrommaine]

Talked to a few people who no longer carry sink hole insurance on their Homeowners Policy. They stated the catastrophic insurance is enough due to negative changes with sink hole cover past couple of years.

Do you have sink hole and catastrophic coverage?

[Chatbrat]

If your drive way collapses and it does't affect your house 's structure -you be have sinkhole insurance

[bagboy]

Check with your agent. It's my understanding that sinkhole insurance will only cover you if your home is affected and deemed inhabitable. With a sinkhole on your property that doesn't affect your home, you're on your own for the cost of repairs. We have sinkhole insurance with a ten percent deductible.

[aaffmom]

I have sinkhole coverage with $1000 deductible.

[Ralphy]

I have sinkhole coverage with $1000 deductible.

Where did you get it from???

[coffeebean]

The cost of the coverage from The Villages insurance company is very expensive. The agent actually talked us out of carrying sink hole coverage. She said the home owner's policy which covers catastrophic coverage should be enough. Now I'm wondering about that!

[spuds51]

[What you are describing sounds like catastrophic ground collapse coverage which all homeowners have. Sinkhole coverage is a separate coverage and is very hard to get anymore. Your house has to be condemned before you can collect on catastrophic coverage.
It depends on where you live. If there has been any sinkhole activity, in so much distance, they won't write a sinkhole policy. I forget how far it has to be. Even then, your house has to be inspected and show no signs of foundation problems. Many people that have lived here for a long time still have sinkhole coverage. Most new residents can't get it.
If you have sinkhole coverage, and you have a sinkhole anywhere on your property, they will fix it but there is usually a large deductible.

I don't want to put information out there that is not correct. There have been some changes in the laws I have learned. One, the sinkhole has to affect the home itself, and not just a hole in the Yard or driveway. The second is they have made it easier to get it, (not guaranteed), but at least they'll talk to you. They wouldn't even consider it in 2013.

Limited Sinkhole Insurance Available for Florida Residents on July 2016 | Buchanan Ingersoll & Rooney PC - JDSupra (http://www.jdsupra.com/legalnews/limited-sinkhole-insurance-available-54519/)






QUOTE=bagboy;1440625]Check with your agent. It's my understanding that sinkhole insurance will only cover you if your home is affected and deemed inhabitable. With a sinkhole on your property that doesn't affect your home, you're on your own for the cost of repairs. We have sinkhole insurance with a ten percent deductible.[/QUOTE]

[raynan]

In the current situation, the catastrophic coverage which everyone has, will cover if the house is uninhabitable. For Irma, FL was declared a disaster area which brings in FEMA. From what people on our street have been told (there are sink holes on our street) FEMA will cover what the catastrophic insurance will not cover because of the disaster declaration.

[aaffmom]

There are companies writing sinkhole coveragewith no inspection required. Tower Hill, Safe Harbor, State Farm and Allstate are the ones I know of. There are probably more. Call an agent to see if you can get a quote.

[ricthemic]

[what you are describing sounds like catastrophic ground collapse coverage which all homeowners have. Sinkhole coverage is a separate coverage and is very hard to get anymore. Your house has to be condemned before you can collect on catastrophic coverage.
It depends on where you live. If there has been any sinkhole activity, in so much distance, they won't write a sinkhole policy. I forget how far it has to be. Even then, your house has to be inspected and show no signs of foundation problems. Many people that have lived here for a long time still have sinkhole coverage. Most new residents can't get it.
If you have sinkhole coverage, and you have a sinkhole anywhere on your property, they will fix it but there is usually a large deductible.

As much as i love tv.... I don't think our houses in florida have foundations.




Quote=bagboy;1440625]check with your agent. It's my understanding that sinkhole insurance will only cover you if your home is affected and deemed inhabitable. With a sinkhole on your property that doesn't affect your home, you're on your own for the cost of repairs. We have sinkhole insurance with a ten percent deductible.[/quote]

[Carla B]

There are companies writing sinkhole coveragewith no inspection required. Tower Hill, Safe Harbor, State Farm and Allstate are the ones I know of. There are probably more. Call an agent to see if you can get a quote.

I thought State Farm and Allstate pulled out of Florida years ago as far as writing Homeowners' Insurance.

[Villageswimmer]

I thought State Farm and Allstate pulled out of Florida years ago as far as writing Homeowners' Insurance.


I think you're correct. I know State Farm is writing ho policies again because we just purchased one yesterday. They do require an inspection for sinkhole portion if the home is more than 6 months old. I don't see that as a big deal. Our cost is $23. State Farm pays the rest--whatever that is.

Seems like things in the insurance world change so rapidly it's hard to keep up. Best to call your agent and not make decisions based on board postings.

[rubicon]

There are companies writing sinkhole coveragewith no inspection required. Tower Hill, Safe Harbor, State Farm and Allstate are the ones I know of. There are probably more. Call an agent to see if you can get a quote.

Unless they have changed policy State Farm would not write my sinkhole coverage without an inspection, an inspection they arranged with a company of their choice but which they made me pay. When it comes to insurance companies I hold my tongue because they always have the high ground...and I was an insurance guy

[rubicon]

I thought State Farm and Allstate pulled out of Florida years ago as far as writing Homeowners' Insurance.

Stay tuned it may be the case after the dust settles with hurricane Irma but for now they both do write here.
Let's hope Rick Scott who opened the door wide for insurance when he was first elected still has clout with them now?

[dewilson58]

Unless they have changed policy State Farm would not write my sinkhole coverage without an inspection, an inspection they arranged with a company of their choice but which they made me pay. When it comes to insurance companies I hold my tongue because they always have the high ground...and I was an insurance guy

These inspections..........$2k to $3k......costly, but In A Way, also another type of "insurance".

[Villageswimmer]

These inspections..........$2k to $3k......costly, but In A Way, also another type of "insurance".



State Farm policy purchased yesterday. The sinkhole inspection cost us $23.

[rubicon]

Ground in Florida is built on limestone and especially vulnerable is the areas of western Central Florida.

the ground is giving way as either sinkholes or washouts
Is it because of the added water let by Hurricane Irma?

Gary and Ellen Miller of Apopka watched as their home was swallowed up by earth

Insurance will cover the cost of the home but will not fill in the hole FEMA may cover this portion for the Miller's if the ties to Irma (Orlando Sentinel 9/27)

the article did not elaborate on whether the house was subject to a washout or a sinkhole. It did not elaborate on whether the Miller's had (had not) sinkhole and/or catastrophic sinkhole insurance. so one can't tell why only the home was covered. I could guess but would prefer to inspect the premise, read the policy, confer with an expert then decide

Check you policies neighbors understand what is in them and if you are not certain call your agent

[ukbill70]

State Farm policy purchased yesterday. The sinkhole inspection cost us $23.

Did you just purchase Sink Hole Insurance from State Farm or did you purchase Home owners Insurance plus Sink hole insurance. About a year ago my neighbor checked with The Villages Insurance and it would have added about $1000 to their premium and the deductible was around 33% of the value of the house, We both declined.

[Barefoot]

If you have sinkhole coverage, and you have a sinkhole anywhere on your property, they will fix it but there is usually a large deductible.


That's my understanding also. The Insurance Company will fix a sinkhole but with a HUGE deductible.
But everyone should check with their own insurance broker.

State Farm policy purchased yesterday. The sinkhole inspection cost us $23.

Good to know! Is there a large deductible if State Farm is required to fix a sinkhole?

[valuemkt]

Catastrophic basically says your house will be condemned as uninhabitable .. I view the additional coverages such as ALL-PERIL, sinkhole, flood as add ons that are a buffer to normal policies filled with exclusions .. All depends on your SWAN quotient .. SLEEP WELL AT NIGHT

[aaffmom]

Nope. They are both writing. Best to call agent to get information.

[spuds51]

Of course, the houses sit on slabs. They check for signs of cracks in the walls and look at the ground surrounding the house. At least that is what I was told. So foundation was a bad choice of words I guess.
Someone else posted that there are several ins companies that will write sinkhole policies, and do not require an inspection. If this is true there has been a big change in the last four years. When we moved down here we could find no company to write sinkhole coverage. I told the realtor that it would be a deal breaker if I couldn't get it. They searched for two weeks finding no company that would write one in 2013. I ended up coming anyway but I contacted pretty much every company that has been listed on here. I will call again to see if something has changed.

Limited Sinkhole Insurance Available for Florida Residents on July 2016 | Buchanan Ingersoll & Rooney PC - JDSupra (http://www.jdsupra.com/legalnews/limited-sinkhole-insurance-available-54519/)


I did find this, it tells a little about changes in the last few years





[/QUOTE]

[dotti105]

State Farm took such a huge loss when Andrew hit in '92 that they quit writing HO policies in Florida. After 15 yrs with out a Catastrophic Hurricane they just started writing policies again. We bought our home in 2014 and they did not offer HO in Fla at that time. Let's see how long they continue to write HO now after Irma.
Catastrophic Ground Cover Collapse is available now with out any extra fees. But it only pays if your home is condemned.
When we bought in 2014 Sink Hole Coverage was available at a reasonable price. When we renewed it was only available if you had it the previous year, so we have maintained our Sink Home Coverage.
It now is available to new policy owners at a much higher fee. But since we had it, we are keeping it. The odds of a sink hole developing in your yard is slim. But it if happens to you, it's a serious issue with lots of expenses. They bring in heavy equipment and pump the ground full of a slurry of concrete to protect your foundation and support the ground. Very pricey!
Nothing good about sink holes!

[Villageswimmer]

Did you just purchase Sink Hole Insurance from State Farm or did you purchase Home owners Insurance plus Sink hole insurance. About a year ago my neighbor checked with The Villages Insurance and it would have added about $1000 to their premium and the deductible was around 33% of the value of the house, We both declined.


Ours is homeowners that includes sinkhole. Full replacement coverage. We could have had a $1000 deductible but chose a $5000 deductible to lower the premium. The policy was effective yesterday. The sinkhole portion is pending inspection which should take place within two weeks.

We always opt for higher deductibles, preferring to self insure to the extent we feel comfortable.