Sorry, another insurance question from a newbie

[philnpat]

We feel like we're being a pest asking all these questions but as far as answers...this is the place to be!. Thanks in advance.
We'll be closing in a week or so on our home in Duval. As far as insurance goes, any feelings about sink hole coverage and flood insurance coverage?. Being from upstate N.Y., we don't even know what a sink hole is! As far as flood insurance is concerned, is the Villages in a flood plain? And tornado insurance, is that covered by wind insurance? Hmmm...confusing.
Any help would be appreciated!
My wife, Pat is going down the 16th for closing with her sister, brother-in-law and our son. If you see a confused group driving around Duval in a rented golf cart...please say hello!
Thanks again,
Phil

[villages07]

you can do some searches on prior insurance threads to get a breadth of opinions.

Sinkhole insurance is necessary, IMHO; sinkholes do happen in The Villages and repairs can be very costly. Do compare different policies...some had a 10% deductible (i.e. on a $250K house you would pay the first 25K of repairs out of pocket before the insurance would kick in). Other carriers have a flat rate deductible. Sinkhole coverage is 100-150/yr

Flood insurance... I personally didn't see the need for it; cost is approx $300/yr; others do take it.

Tornado damage is covered under normal perils...unless as a spinoff from a hurricane then covered by hurricane coverage. Watch the deductibles on hurricane too...some are %, some carriers are flat rate.

One thing to be aware of....if there is an active tropical storm warning/watch anywhere in FL, most companies will not write any new policies until the watch/warning expires. IDA is out there now but should be gone by Wed.

All in all, the insurance is reasonably affordable down here...given the hurricane history of FL, tornados, lightning, fire danger in winter, etc.

[Don H]

Villages07; I'm confused by part of your answer concerning sink hole insurance. Did you mean the 10 percent deductable is 10 percent of the cost of repair or 10 percent of the value of the house? $25,000 is pretty high for a deductable. Like PhilnPat I'm also curious about the insurance costs since we haven't moved to TV yet.

[villages07]

Don.... yep you pay the equivalent of 10% of the insured value of your dwelling before the insurance kicks in. This was for Traveller's Insurance. So, on a $250K dwelling with a $60K sinkhole repair (may require lots of concrete fill in).... you would pay the first $25K and the insurance would cover the remaining $35K.

I switched to ASI last year and the deductible is a flat $500 per incident.

Even with sinkhole coverage (and no flood coverage), annual insurance premiums for a 250K house are in the neighborhood of 700-1,000/yr. Not outrageous at all and nowhere near as expensive as coastal FL property.

[philnpat]

Thanks for the info. We're now insured by ASI. Their local salesperson was very helpful. I questioned her on the yearly premium as it was much less than we thought it would be. I thought she was quoting a 6 month rate! We're learning tht upstate NY isn't the most affordable place to live.
Thanks again for all your help.
Phil

[784caroline]

Sink holes happen al the time in TV. Just recently we had 2 or 3 lakes that went dry due to sink holes. You definitely want Sink Hole coverage Flood insurance is a personal choice. I have been here whjen we received 8-10 inches a rain in a very short period of time. Little if any flooding and no homes were effected....primarily road ways. WE dont have basements so no drains to really back up.

[golfnut]

784, You definitely want Sink Hole coverage, to me seems a little extreme, anyone ever see a sink hole problem that was not adjacent to a retention pond. Might be nice to see a poll regarding how many Villagers have sink hole coverage....GN

[downeaster]

784, You definitely want Sink Hole coverage, to me seems a little extreme, anyone ever see a sink hole problem that was not adjacent to a retention pond. Might be nice to see a poll regarding how many Villagers have sink hole coverage....GN

A few years ago their was considerable activity in Vila St. Simon that would indicate sink hole problems. Numerous concrete trucks coming and going and concrete pumps with high pressure hoses leading to driveways and back yards. Some streets were closed. Vila St. Simon is surrounded by a golf course but it included properties in the interior.
Sink hole problems are not only a Villages problem. They are a Central Florida problem. They are exacerbated by excavating the top layers to provide for retention/detention ponds and hills and valleys to make the golf courses less boring. We sit on limestone deposits. When the water table gets too low and top layers of soil have been skimmed off, it permits seepage to accelerate and pretty soon it's like taking the plug out of the bath tub.
Sink holes are a risk that can be insured against. It is an individual decision. However, if your agent recommends it, consider it thoughtfully. Don't assume he/she is jacking up the premium to increase his/her commission. I'll bet the agent has sink hole coverage. I certainly do.

[784caroline]

I view insurance as a necessary evil...not something I want. Insurance to me is to cover unexpected costs/expenses that canot be foreseen and something I am not willing to self-insure for. Also I base the need to obtain insurance on the risk of such an event happening that would cause the insurance to kick in AND out of pocket costs to pay for such damage.

DO Sink holes occur frequently....NO
...DO they occur ..YES..in The Villages YES... and one cannot predict where but as a previous poster stated they do frequent central Florida

When they do occur the damage can be substantial causing foundation and other structural damage...BIG bucks to repair.

With this rationale, and the availability of sink-hole insurance, I have it. Its part of my home owners policy not a separate add-on so I cannot say what I am paying for his particular coverage.

You cannot determine or compare home owner insurance simply on price alone. Some policies may or may not include Sink-hole coverage, wind deductibles can vary, but the real unknown is the financial ability of an insurer or underwritter to pay off all claims if in fact a major occurence happens.

[Cassie325]

A few years ago their was considerable activity in Vila St. Simon that would indicate sink hole problems. Numerous concrete trucks coming and going and concrete pumps with high pressure hoses leading to driveways and back yards. Some streets were closed. Vila St. Simon is surrounded by a golf course but it included properties in the interior.
Sink hole problems are not only a Villages problem. They are a Central Florida problem. They are exacerbated by excavating the top layers to provide for retention/detention ponds and hills and valleys to make the golf courses less boring. We sit on limestone deposits. When the water table gets too low and top layers of soil have been skimmed off, it permits seepage to accelerate and pretty soon it's like taking the plug out of the bath tub.
Sink holes are a risk that can be insured against. It is an individual decision. However, if your agent recommends it, consider it thoughtfully. Don't assume he/she is jacking up the premium to increase his/her commission. I'll bet the agent has sink hole coverage. I certainly do.

I agree!!! Just so you know....none of the agents at Sumter-Marion Insurance nor the agents from The Villages Insurance work on commission. They are salaried only. This was done specifically to re-assure the client that the policy is quoted with only the best interest of the client in mind.

Travellers insurance was the only company that wrote a policy with a 10% deductable for sink hole. Any new owners will not get that as Travellers is no longer writing new policies.

Sinkholes are all over Florida....and they are not something that are advertised freely in the villages. I don't know an agent in town that would advise you not to get coverage.