Just another homeowners insurance question for anyone "IN THE KNOW"..

[Will.S]

So there is a fine line between "catastrophic damage" and "sinkhole damage" ? Closing on a house in the Spanish Springs area in a few weeks. Need to set up insurance. My initial quotes are DOUBLED for adding sinkhole coverage.

So if a sinkhole collapses 1/2 my house- that would NOT be covered under the CATASTROPHIC damage portion of my policy ?

Much more coffee is needed..

[retiredguy123]

If a sinkhole damages the house, and the county or state condemns the house and requires you to move out, your catastrophic ground collapse will cover the damage, except any deductible. This insurance is required for all homeowner's policies in Florida. In this case, your optional sinkhole insurance will not cover anything.

If a sinkhole damages part of your house, but it can still be lived in, the optional sinkhole coverage will cover the damage, except for the deductible. The catastrophic ground collapse coverage will not cover anything.

One common myth is that sinkhole insurance will cover property that is not part of the house, like driveways, fences, lawns, etc. This is NOT correct. It only covers damage to the house.

That is the way I understand the two types of coverage.

[Topspinmo]

Insurance is such ripoff and Ponzi scheme. All natural causes should be covered. I should not have to get extra flood insurance, sinkhole insurance, earthquake insurance, all natural causes why we get insurance. But, lobbyist grease some palm what get Ponzi scheme. Bottom line anything happens to my home out of my control should be covered IMO.

[Will.S]

One would think !

[Gatorfan1]

https://www.myfloridacfo.com/docs-sf/consumer-services-libraries/consumerservices-documents/understanding-coverage/consumer-guides/english---sinkholes-and-catastrophic-ground-cover-collapse-guide.pdf?sfvrsn=a4c83969_4

[Gatorfan1]

https://www.myfloridacfo.com/docs-sf/consumer-services-libraries/consumerservices-documents/understanding-coverage/consumer-guides/english---sinkholes-and-catastrophic-ground-cover-collapse-guide.pdf?sfvrsn=a4c83969_4

[Rainger99]

Another article.

The insurance company usually requires a geological inspection before writing sinkhole coverage.

If they will write you sinkhole coverage, you probably won’t need it. If they won’t write it, you probably do need it.


Catastrophic Ground Cover Collapse vs Sinkhole Coverage - Explained (https://www.harrylevineinsurance.com/sinkhole-coverage-vs-catastrophic-ground-collapse/)

[Rocksnap]

I just went thru this for our first purchase in TV. Catastrophic coverage is standard. A total loss where you cannot live in the house.
Extra was “can be fixed” sinkhole coverage. Which I did get this first round, as well t was only $225 more a year. That comes with a $40,000 deductible.
I’m going to look into a company that specializes is FINDING sinkhole areas on your property. If there was a no issue, goodbye to xtra coverage.

[Ellwoodrick]

Here is a link for the Florida Dept. of Environmental Protection’s Subsidence Incident Reports Map.



Click here. (https://ca.dep.state.fl.us/mapdirect/?webmap=57f0721c3c5e4b16a3a92c0c12493978)

[Girlcopper]

So there is a fine line between "catastrophic damage" and "sinkhole damage" ? Closing on a house in the Spanish Springs area in a few weeks. Need to set up insurance. My initial quotes are DOUBLED for adding sinkhole coverage.

So if a sinkhole collapses 1/2 my house- that would NOT be covered under the CATASTROPHIC damage portion of my policy ?

Much more coffee is needed..
Clarify it with the insurance co if you want an accurate answer

[retiredguy123]

Clarify it with the insurance co if you want an accurate answer
If you are referring to the insurance "agent" who sells policies, you probably will not get an accurate answer, and they will not give you anything in writing. A better way is to read the policy.

[nn0wheremann]

So there is a fine line between "catastrophic damage" and "sinkhole damage" ? Closing on a house in the Spanish Springs area in a few weeks. Need to set up insurance. My initial quotes are DOUBLED for adding sinkhole coverage.

So if a sinkhole collapses 1/2 my house- that would NOT be covered under the CATASTROPHIC damage portion of my policy ?

Much more coffee is needed..
If the county declares the home uninhabitable, your standard insurance covers it. Otherwise, it is your dime.

[Ken D.]

https://www.myfloridacfo.com/docs-sf/consumer-services-libraries/consumerservices-documents/understanding-coverage/consumer-guides/english---sinkholes-and-catastrophic-ground-cover-collapse-guide.pdf?sfvrsn=a4c83969_4
That’s as definitive an answer anyone will get. Thanks from all!

[Chamo]

Sinkhole coverage is a waste of money. The standard deductible is about $44,000 that you must come up with before they even do anything are you kidding me. I think we’re in a good location that we don’t have to worry about it.

[Rainger99]

If the county declares the home uninhabitable, your standard insurance covers it. Otherwise, it is your dime.

I think it has to be abrupt. If it subsides over time, I don’t think standard insurance covers you. I am not sure how abrupt has been defined. Perhaps someone with insurance background can elaborate.

The abrupt collapse of the ground cover;
A depression in the ground cover clearly visible to the naked eye;
Structural damage to the insured building, including the foundation; and
The insured structure being condemned and ordered to be vacated by the governmental agency authorized by law to issue such an order for that structure.

From my experience, the policies are written by the insurance companies and they make every effort to deny a claim.

[jrref]

There was a sink hole on the golf course near Nancy Lopez recently. A house near it was declared uninhabitable and catastrophic ground collapse kicked-in eventhough there was absolutely nothing wrong with the house. Based on the past couple of sink holes involving houses here in the Villages, it seems like the county plays it safe and declares catastrophic which is covered by all homeowners insurance so unless you live in an area where there have been a lot of sink holes, sink hole insurance is probably a waste of money.

[Topspinmo]

There was a sink hole on the golf course near Nancy Lopez recently. A house near it was declared uninhabitable and catastrophic ground collapse kicked-in eventhough there was absolutely nothing wrong with the house. Based on the past couple of sink holes involving houses here in the Villages, it seems like the county plays it safe and declares catastrophic which is covered by all homeowners insurance so unless you live in an area where there have been a lot of sink holes, sink hole insurance is probably a waste of money.

General question?

Is there way to find out if pond retention drains are install between properties? IMO installing transfer/street drainage under private property should be illegal or at least clearly defined. There a lot ground collapse/sinkhole related to street drains that are deep below retention pond levels rotted out leaking. IMO they eventually leak and may cause ground collapse down to underground cavity.

I don’t understand how big utilities drain/transfer pipes can be ran between houses less than 15 yards apart and be legal. IMO any leaking/digging work on those pipes between properties are liability. IMO you think there would have been 20 yard or so easement from property lines? If I was buying house I’d look out front for street drain see if it’s running towards retention pond?

[jrref]

General question?

Is there way to find out if pond retention drains are install between properties? IMO installing transfer/street drainage under private property should be illegal or at least clearly defined. There a lot ground collapse/sinkhole related to street drains that are deep below retention pond levels rotted out leaking. IMO they eventually leak and may cause ground collapse down to underground cavity.

I don’t understand how big utilities drain/transfer pipes can be ran between houses less than 15 yards apart and be legal. IMO any leaking/digging work on those pipes between properties are liability. IMO you think there would have been 20 yard or so easement from property lines? If I was buying house I’d look out front for street drain see if it’s running towards retention pond?

Some of the sink hole problems have been around ponds in recent years. I don't have an answer to your question but I would reach out to the Villages. There has to be a plan of how all the utilities were layed out when the Village was built.

[ton80]

Our home in Osceola Hills (2016) has a storm drain from the cul-de-sac underground to the retention pond. Our lot and our neighbors lot both have 15 ft. special easements in addition to the normal setback from the house to sideline distance. So there is a minimum of about 45 ft. between our houses in case there is a need for storm sewer maintenance.

These easements were shown on the sales map and also on our lot maps.

[kkingston57]

Insurance is such ripoff and Ponzi scheme. All natural causes should be covered. I should not have to get extra flood insurance, sinkhole insurance, earthquake insurance, all natural causes why we get insurance. But, lobbyist grease some palm what get Ponzi scheme. Bottom line anything happens to my home out of my control should be covered IMO.

Understand what you are saying. While I am writing this Helene is headed toward Florida with 15 foot storm surges expected. If Homeowner Insurance covered flood all of us will end paying for their flood damage. Same in California with their earthquake exposure. Full disclosure I was in the insurance adjusting biz and did not work directly for an insurance company.