Insurance Denied Due to Sinkholes

[Cheryl Barrios]

I am in the process of buying a home and have to provide insurance. I was just denied insurance by Progressive because of a sinkhole 0.2 miles from the home. I am totally unaware of any sinkholes in the Village of Sunset Pointe. I have contacted the realtor but it's too late to contact anyone else. Does anyone know of a sinkhole(s) or know about denial of insurance due to them? Now I'm lost on what to do.

[Topspinmo]

Get another quote from different insurance company see what they say? Or back out of deal?

[Bill14564]

I am in the process of buying a home and have to provide insurance. I was just denied insurance by Progressive because of a sinkhole 0.2 miles from the home. I am totally unaware of any sinkholes in the Village of Sunset Pointe. I have contacted the realtor but it's too late to contact anyone else. Does anyone know of a sinkhole(s) or know about denial of insurance due to them? Now I'm lost on what to do.

Somewhere on this site was a thread on sinkholes. A 2017 map posted in that thread showed sinkholes or ground stabilization activities near Latta and Blythewood Loop, near the Hibiscus pool, near the pond along Westchester Way, and near Buena Vista and Bailey Trail. I can't speak to the accuracy of the map, you should try searching for the thread.

I would contact Villages Insurance. This is not an endorsement as a provider (though I use them) but if anyone would know how to deal with this situation, they should.

[retiredguy123]

I am in the process of buying a home and have to provide insurance. I was just denied insurance by Progressive because of a sinkhole 0.2 miles from the home. I am totally unaware of any sinkholes in the Village of Sunset Pointe. I have contacted the realtor but it's too late to contact anyone else. Does anyone know of a sinkhole(s) or know about denial of insurance due to them? Now I'm lost on what to do.
I am assuming that you are getting a mortgage and the mortgage company is requiring the insurance to get the loan? Otherwise, you wouldn't need insurance to buy the house. I would call The Villages Insurance who can probably get you insurance with another company. Or, the real estate agent may be able to recommend an insurance company. You may not be able to get "sinkhole" coverage, but all Florida policies must include "catastrophic ground collapse" coverage. After you buy the house, you may be able to shop around and get sinkhole coverage from another company.

[Cheryl Barrios]

Thank you!

[Ecuadog]

I believe that USAA (https://www.usaa.com/inet/wc/insurance_home_condo) is now offerring sinkhole insurance.

[CWGUY]

:shrug: I kind-a remember a sinkhole somewhere near Cane Garden several years ago. Maybe someone who lives in the area will remember and tell you where.

[Velvet]

Yellow dot shows where sink holes have occurred and at what elevation. You may have to zoom in on the photo to see them. The villages insurance broker can suggest which insurance companies cover for sink hole, I have Coastal.

[CWGUY]

Yellow dot shows where sink holes have occurred and at what elevation. You may have to zoom in on the photo to see them. The villages insurance broker can suggest which insurance companies cover for sink hole, I have Coastal.

Looks like it was near Latta Ct.

[John_W]

I switched insurance companies in 2018 with The Villages Insurance Agency, I dropped American Integrity after seven years because they kept raising their rates. I inquired about ASI (Progressive), they told me that ASI wasn't writing policies with sink coverage even then. I don't why someone would recommend them now. If you're with The Villages Agency ask them about Cabrillo Coastal Insurance. That's who they put me with and it saved me over $400 a year over American Integrity.

Cabrillo Coastal General Insurance Agency – Residential property insurance for hurricane-exposed areas. (https://www.cabgen.com/)

[John_W]

:shrug: I kind-a remember a sinkhole somewhere near Cane Garden several years ago. Maybe someone who lives in the area will remember and tell you where.

There was two sink holes on Cane Garden Jacaranda nine 5th Hole left side, two homes side-by-side in the Village of Pennecamp. I played golf and there was yellow ribbon around both lots. A helicopter from one the Orlando stations was overhead for almost two days with a camera. I lived a mile away and I could hear the helicopter anytime I went outside. They filled them in with cement and dirt and heard no more after that about a problem. That was about 2015 I would guess. As I wrote above when I inquired two years, Progressive (ASI) doesn't write policies with sink hole, so you can get insurance but won't cover sink holes. In the OPs case, it sounds like they won't even write any if they know there was one in the area. Move on to another company like I did.

[graciegirl]

I am in the process of buying a home and have to provide insurance. I was just denied insurance by Progressive because of a sinkhole 0.2 miles from the home. I am totally unaware of any sinkholes in the Village of Sunset Pointe. I have contacted the realtor but it's too late to contact anyone else. Does anyone know of a sinkhole(s) or know about denial of insurance due to them? Now I'm lost on what to do.


Never once ever heard anyone here denied insurance because of sinkholes.

[Garywt]

We went through the Village Insurance Co. They wrote in 2 different types of sinkhole insurance into the policy. There have been sinkholes, 2 houses a mile from our house were destroyed a few years back.

[Cheryl Barrios]

Thanks for letting me know. The person I talked to said that the underwriter refused to carry the insurance. I know a lot about the purpose of insurance, but not why people can't get policies (with some exceptions). I have never been denied insurance and have owned my houses and vehicles.

[banjobob]

I was told by Progressive they would not
write home insurance in Florida. Does anyone have Progressive here?

[G.R.I.T.S.]

I am in the process of buying a home and have to provide insurance. I was just denied insurance by Progressive because of a sinkhole 0.2 miles from the home. I am totally unaware of any sinkholes in the Village of Sunset Pointe. I have contacted the realtor but it's too late to contact anyone else. Does anyone know of a sinkhole(s) or know about denial of insurance due to them? Now I'm lost on what to do.

I've lived in sunset pointe for 15+ years and know of two, both near our home and both beyond 5 year declaration limit.

[RedFoxRick]

We are in the process of moving to TV (close on our home next week). The first house we put a deposit on (Calamut Grove) was denied by my insurance company, Amica, who I have worked with for over 35 years. They typically do not insure homes in Florida, but they make exceptions for long-term customers. However the first house was within .3 miles of a sinkhole and they would not insure it. I actually passed on two more houses after checking with my insurance company - they had the latest map - and the homes were also within .3 to sink holes. We did find a lovely place in Village of Dunedin where closest sink hole was 1.5 miles away. It wasn't only about insurance, w also used the ability to get insurance as a way to mange overall risk (who wants the risk of a sink hole in Central Florida - where they are almost as plentiful as golf carts). We are happy we stayed with Amica and they gave us a big discount once we had a wind mitigation report done when the house was inspected pre-sale (saved over $600 a year with a $75 inspection report). I think real estate salespeople should be more aware of the sinkhole risks and locations to help a buyer and seller understand the risks going-in.

[Catalina36]

I recently purchased in TV in October. I used Allstate, The Bascom Agency, 1-352-753-1177. Speak with Alyssa, Excellent Service.
I live in the Ashland Village.

[caseycasebeer]

A previous poster mentioned sinkhole coverage (that may not be available), but also stated that all FL policies cover “catastrophic ground collapse.”

What’s the difference?

[bowlingal]

go to AAA for insurance

[GRACEALLEMAN]

What you need what you need to do is call community development of the villages. And ask them about the sinkholes in that area, I would also if your nearby go to the neighbors, knock on doors and ask what insurance they use, this should have been told to you by the realtor she should have done her leg work and figure this one out... Also just because progressive denies it does not mean other ones will deny it. I would check around do not give up yet.

[themarinos]

I have a policy through TV Insurance group with ASI with Sink Hole coverage and now its
ASI/Progressive renewed in May

[Pbthrockm@msn.com]

Where do you get this map.

[NoMo50]

Our homeowners insurance, in Chitty Chatty, was written by Progressive/AS I, and does include sinkhole coverage. So, yes, they do offer the coverage. I can't speak for all areas. We went through The Villages Insurance...Stacee Shroeder.

[retiredguy123]

A previous poster mentioned sinkhole coverage (that may not be available), but also stated that all FL policies cover “catastrophic ground collapse.”

What’s the difference?
It's a little complicated, but here is a good explanation.

“Catastrophic ground cover collapse” is
defined as “geological activity that results in all
of the following:
1. The abrupt collapse of the
ground cover;
2. A depression in the ground cover
clearly visible to the naked eye;
3. Structural damage to the building
including the foundation; and
4. The insured structure being
condemned and ordered
to be vacated by the government
agency authorized by law to issue
such an order for that structure.”

If you do not purchase sinkhole coverage and
your home is damaged by sinkhole activity,
the only coverage you have is for catastrophic
ground cover collapse and if the damage does
not meet all four criteria required for catastrophic
ground cover collapse – for instance, you may
have foundation cracks, but the home is still
livable – your insurance company may not pay
for the damage.

[Beanze]

I was told by Progressive they would not
write home insurance in Florida. Does anyone have Progressive here?

Yes, we have progressive & we purchased a home in June of 2020 Village of Amelia

[retiredguy123]

I was told by Progressive they would not
write home insurance in Florida. Does anyone have Progressive here?
I have Progressive homeowners insurance and it includes sinkhole coverage. I just renewed the policy.

[Villages Kahuna]

Find another insurance company. Their underwriters have decided to limit risk. You won’t win the argument. When we moved here our longtime auto and homeowners insurance company, USAA, wasn’t writing any homeowners insurance in Florida, none!

After several years USAA returned to writing homeowners policies, but only very selectively in very few, well-defined areas. They still avoid any areas with sinkhole risk or coastal areas which could suffer hurricane hits and will only write a certain number of policies.

[lmack]

I've used Villages Insurance for years, 4 properties, 2 just ground collapse and 2 sink hole coverage.
Shopped around last year and still they had the best price (included AAA, USAA, State Farm and Allstate in my shop).

[Indiana Randy]

Allstate, The Bascom Agency, 1-352-753-1177 Tim Bascom comes to our Real Estate office often and talks about this.

[BritChris55]

USAA does offer sinkhole insurance, I have it.

[Kahuna32162]

I was told by Progressive they would not
write home insurance in Florida. Does anyone have Progressive here?

We switched from American Integrity to Progressive/ASI 2 ears ago and have had very small rate increases to date.

[KsJayhawkers]

We got sink hole coverage with ASI Progressive Home with a 10% deductible, which is industry standard. We live in Chitty Chatty.

[chas39]

Go to AAA

[Dlbonivich]

Jeff Chernoff Insurance and Trust (813) 933-7333 He maybe able to help. He uses different companies than the Villages. Andrea Bonivich, Sellstate Superior Realty Good Luck!

[ValSetz]

Have had AAA insurance since moving to the area in 2010. Moved from Villages and new house sinkhole coverage under AAA policy disappeared. When I called told they were not writing sinkhole coverage in Sumter County.

[OhioBuckeye]

You know I really think SOME Ins. Co. are just in the business to take in money not pay it out.
Prudential, who I have Ins. with probably doesn’t want take a chance on having to have to pay out lots of money for sink hole damage. Just like living near the ocean some Ins. Co. won’t cover water damage or whatever it’s called. So why would any Ins. Co. want to take a chance in you have a sink hole. So why would you want to buy Ins. from Prudential. Look else where. It’ll probably cost you a lot of money to get sink hole Ins. though!

[cbmerl]

I am in the process of buying a home and have to provide insurance. I was just denied insurance by Progressive because of a sinkhole 0.2 miles from the home. I am totally unaware of any sinkholes in the Village of Sunset Pointe. I have contacted the realtor but it's too late to contact anyone else. Does anyone know of a sinkhole(s) or know about denial of insurance due to them? Now I'm lost on what to do.
I got insurance with The Villages Insurance when I moved to Marsh Bend in Oct. 2019. I told them that it was imperative that I have sink hole coverage and they found a company who would write it. It is with a 10% deductible which is standard. The Villages Insurance is an agency who can write insurance with many different companies. Many companies will not write a policy including sink whole coverage because of the frequent sink holes in the area but there are others who will. Call The Villages Insurance ...352-751-6622. The policy they got me is with Traveler's.

[brick010207]

Don’t buy the house! Financed or not your contract should have an out for this particularly if you were not made aware. Your realtor knows or should have known about this issue. The fact that he/she is not there says a lot! If you find insurance it will cost u

[Sherry8bal]

First I would never use a company like Progressive. Try AAA Insurance and they have many multiple providers. We have Travelers through AAA and they have been wonderful and we've had them for 19 years.

[Sherry8bal]

I got insurance with The Villages Insurance when I moved to Marsh Bend in Oct. 2019. I told them that it was imperative that I have sink hole coverage and they found a company who would write it. It is with a 10% deductible which is standard. The Villages Insurance is an agency who can write insurance with many different companies. Many companies will not write a policy including sink whole coverage because of the frequent sink holes in the area but there are others who will. Call The Villages Insurance ...352-751-6622. The policy they got me is with Traveler's.

We originally was going to go with the Villages Insurance, but if you really look at you really look at your policy, they used the PURCHASE PRICE of your house as the insured amount but that price has the lot in it, which won't be destroyed; it has the slab which most likely won't have anything happen to it AND it has the Developer's PROFIT in it, which is like paying insurance for "blue sky" and that's throwing money into the air. When we called them out on this, their reply was "that's how we do it". We immediately went to another company (Travelers).

[Nana4x]

First I would never use a company like Progressive. Try AAA Insurance and they have many multiple providers. We have Travelers through AAA and they have been wonderful and we've had them for 19 years.

We have had Progressive for 6 years through The Villages insurance.

They were great with our two claims ... Roof during hurricane and water that came through window in front bedroom.

We have the 10% deductible for sink holes with them.

[biker1]

If you have some specific data to support this then share it. If this is just a factless opinion then spare us.

First I would never use a company like Progressive. Try AAA Insurance and they have many multiple providers. We have Travelers through AAA and they have been wonderful and we've had them for 19 years.

[Garywt]

Don’t buy the house! Financed or not your contract should have an out for this particularly if you were not made aware. Your realtor knows or should have known about this issue. The fact that he/she is not there says a lot! If you find insurance it will cost u

It is tough to walk away as most money is not refundable. They take your deposit and use it to pay for the house for the days it was not on the market and then if you find a house they will transfer the money.

I myself would never use Progressive. The best thing is to go to an agent in or near the Villages as they deal with it everyday.

[Mfrench]

Do NOT use any insurance company offered by the Villages. They will not help you when their companies deny your claim!! They were extremely arrogant when I asked for their help when Universal, who they sell, denied my roof damage claim. Avoid them like the plague!! Try Farmers and yes, get that sinkhole map !

[ithos]

I was told by Progressive they would not
write home insurance in Florida. Does anyone have Progressive here?

How long ago was this? Maybe before Progressive bought ASI. ASI started out in Florida. I have had them for 5 years.

[rockyhyder]

Try AAA in The Villages.

[rphil11ort]

make sure you price out usaa every couple of years. they can get very expensive in a short timCe. My cousin has a condo in Casselberry and they are charging over $3000 per year and she has been with them for 40 years and only 1 claim in all that time. same thing happened to me with Liberty Mutual

[Velvet]

I am having a hard time getting a good photo of map of sinkholes in TV. What I did was search for the Sticky thread, then the post: (best I can do, hope it helps.)

[newgirl]

Do they insure your auto and cart too?

[DaisyDE]

Can you chat with some neighbors? You can find their names through the tax assessors office. For Sumter it's sumter-a.com, not sure about the other counties. Once you have a few names look up they numbers in TVs telephone directory.

[DAVES]

I am in the process of buying a home and have to provide insurance. I was just denied insurance by Progressive because of a sinkhole 0.2 miles from the home. I am totally unaware of any sinkholes in the Village of Sunset Pointe. I have contacted the realtor but it's too late to contact anyone else. Does anyone know of a sinkhole(s) or know about denial of insurance due to them? Now I'm lost on what to do.

Insurance is not flexible the company does a risk analyses and decides what to charge for a given risk or perhaps to refuse to insure that risk.

Different companies may decide a different risk.

Simply stated, I would contact one of the insurance brokers in the villages. I am surprised your realtor does not know or know who will find an answer for you.

[LeeM]

Try AAA they do sinkhole insurance on resales.

[Leesburg]

Try All State.

[Cheryl Barrios]

No, I have never used Progressive for anything. I wonder how some people are getting coverage through them though.

[RedFoxRick]

Zoom-in to see the sinkhole detail. This should be required to be part of the Real Estate disclosure.

Map Direct v7 (https://ca.dep.state.fl.us/mapdirect/?focus=fgssinkholes)

[DonnaAgostini]

Try Farmers in Ocala.

[jmlarsonx2]

I learned of the sinkhole insurance issue buying my first Florida house in Winter Garden ten years ago. Now I check the address with my insurance carrier (USAA) before making an offer on any Florida home. I won’t buy a house that’s difficult to insure, because some day I will need to sell that house, and now your buyers will have the same difficulty.

[jnieman]

I would ask your insurance agent for advice. They have seen a lot of issues with sinkhole insurance. Beware that if it is a problem when you buy the house that it will also be a problem when you try to sell the house. I used to quote homeowner's insurance and all companies have access to the data of how far the house is to a sinkhole. I've seen people try to buy houses that have had sinkholes that were remediated. They had no luck getting insurance at that time. Not sure what it is like now.

[Laker14]

One thought I have about buying sinkhole insurance is that you may pay premiums for years, and never have a claim. In fact, that's what is most likely, and that's all good. You buy the insurance for peace of mind and hope you never need it. However, I have a feeling that if the area were to have an increase in sinkhole activity, say 2 or 3 times the number currently plotted, you still would be unlikely to be the claimant, and if you are one of the 99.9% not involved, my guess is that the insurance companies will ALL bail out of writing policies. The fact that you can get a policy now is no guarantee you will be able to get one later, should a few more sinkholes appear.
I am beginning to come to the thinking that living with sinkhole risk is just one of those things that comes with the fun of living in this area. We'd all like to avoid that risk at a small price, but that may just become impossible.

[Laker14]

this interesting, but unfortunately, not dated, so I don't know if this information is still accurate. It seems to say that insurance companies are required to provide sinkhole coverage , although as a rider, with extra premiums. Of course, if it is accurate, they can effectively get out of it just by charging more than anyone would want to pay.
https://www.myfloridacfo.com/division/consumers/UnderstandingCoverage/Guides/documents/SinkholesCatastrophicGroundCollapseGuide.pdf

[SharonW]

this interesting, but unfortunately, not dated, so I don't know if this information is still accurate. It seems to say that insurance companies are required to provide sinkhole coverage , although as a rider, with extra premiums. Of course, if it is accurate, they can effectively get out of it just by charging more than anyone would want to pay.
https://www.myfloridacfo.com/division/consumers/UnderstandingCoverage/Guides/documents/SinkholesCatastrophicGroundCollapseGuide.pdf


Catastrophic ground collapse is included in property policies in Florida. Coverage has specific requirements for coverage. First, ground collapse must be sudden and damage to structure. This means if sinkhole opens up in yard, next door, across street and no immediate damage to structure there is no coverage.

Sinkhole coverage does not have those restrictions. Sudden and immediate damage not in coverage wording.

At one time sinkhole was included in all policies but the state changed the coverage to catastrophic ground collapse with restrictions and made sinkhole an optional coverage by endorsement. Companies had option of filing 10% deductible or all perils deductible.

Allstate and State Farm elected all perils deductible. That means if you purchase a $500 deductible and you qualify for sinkhole endorsement the deductible will be $500. There are a few other companies that elected all perils deductible but not sure who they are. The premium will be a little higher but a whole lot less out of pocket if you have a claim.

Having a local agent who is available to answer your questions, takes the time to explain coverage and go over the actual endorsement with you gives you a better understanding of how it works.

As for denying to write a policy due to sinkhole within certain radius...Yes companies can do this. When the state first changed the policy coverage in early 2000’s most every company ran a report on sinkholes by address. Many actually charged the client to run the sinkhole report and had you sign waiver that fee was non refundable if coverage was denied.