Sinkhole Insurance Changes

[gemorc]

During the coverage of the Honda golf Classic on Sunday, a 30 second spot appeared concerning state sinkhole insurance coverage. Not much of an explanation was given, only that proposed legislation in Tallahassee, will greatly change the sinkhole coverage laws, even eliminating some pending law suits. The gist being, we should contact our state legislators for clarification

[Bill-n-Brillo]

Here's an article with some info on the topic:

http://www.propertycasualty360.com/2011/02/03/this-years-major-insurance-bill-targets-sinkhole-c

Bill

[rubicon]

Good article bill n brillo. I have limited infomation about this coverage but it ismy understanding the property damage can be extensive up to and including a total loss on a home. It is also my understanding that arguments ensue as what whether the damage was created by a sinkhole and that the costs to determine the actual cause can be expensive. I would guess that there must be some type of sinkhole experts that both insurance companies and homeowners can hire to settle the dispute. Anyone have the name of a siinkhole expert???

[Bill-n-Brillo]

.....Anyone have the name of a siinkhole expert???

The company that wrote our homeowner's insurance required an independent, 3rd-party inspection of the property to assess (I assume) the current condition of the land and house as well as the future potential for sinkhole issues. I wasn't there during the inspection so I have no idea as to what the inspector did.

The company that performed the inspection was called SDII - they are out of Tampa. Here's their web site: http://www.sdii-global.com/ Click on their "Services" tab at the top - looks like they've pretty much got all the bases covered if an 'expert' is what you'd be looking for! :)

Hope that helps!

Bill

[skyguy79]

The company that wrote our homeowner's insurance required an independent, 3rd-party inspection of the property to assess (I assume) the current condition of the land and house as well as the future potential for sinkhole issues. I wasn't there during the inspection so I have no idea as to what the inspector did.

The company that performed the inspection was called SDII - they are out of Tampa. Here's their web site: http://www.sdii-global.com/ Click on their "Services" tab at the top - looks like they've pretty much got all the bases covered if an 'expert' is what you'd be looking for! :)

Hope that helps!

BillInteresting, I payed $124.70 within my homeowners policy for sinkhole coverage without any limitations specified and no inspection required. I wonder if they might go by geological location charts to determine if an inspection is required or not?

[Bill-n-Brillo]

sky - When we were nosing around about homeowner's insurance, most of the companies/agents we spoke with said nothing about any required inspection. Our luck had it that the company we did choose required it! So in this instance, it was something required by the company that wrote the policy. They're undoubtedly wanting to limit their potential exposure as much as possible.

Bill

[784caroline]

I know of a very recent case where the home owner suspected a sinkhole, contacted the insurance company and they said if you prove to us its a sinkhole we will cover it. If it is proven to be a sinkhole the insurance company would reimburse the homeowner for the drill tests. IT cost $1000's of dollars to hire a company drill bore holes etc which the home owner had to pay. The report was sent to the insurance company and after 2 months of review, they wrote him a check for close to $200,000. They would not buy the land...just as in a fire the only insure the structure. What the home ownereventually did was settle with the insurance company and then the drilling company (or individuals within the drilling company) paid him for the land and took ownership of the house.

I assume they will either simply rent the place out or fix it up at a much cheaper cost that what the original homeowner was faced with. As of now nothing is being done wiht the property and it is being rented out!!

[skyguy79]

I wonder just how many sink hole cases they've actually had in The Villages? It would be interesting to know!

[rubicon]

bill n brillo first thank you so much for the information. My insurer also waived inspection of our property. Perhaps its to your advantage that they did the inspection. It at least would imply that they were satisified that there was little risk for such a loss; otheriwse they would not have insured it.
And secondly places you in a better position God forbid if you were faced with such a loss you could remeind them that they inspected and tested what they insured.

[Bill-n-Brillo]

bill n brillo first thank you so much for the information. My insurer also waived inspection of our property. Perhaps its to your advantage that they did the inspection. It at least would imply that they were satisified that there was little risk for such a loss; otheriwse they would not have insured it.
And secondly places you in a better position God forbid if you were faced with such a loss you could remeind them that they inspected and tested what they insured.

Initially, I wasn't tickled to hear about the requirement for the inspection, especially since they said I'd have to ante up a one-time $70 fee, half the cost (the insurance co. picked up the other half). But after thinking it through a bit, I concluded that, along the lines of what you stated, not only would it help eliminate any finger-pointing exercise if there was the claim of a future sinkhole problem but it will be an additional resale tool if and when we ever opt to sell the place in the future. I received a report outlining the inspection and the results from SDII, the company that did it, so that'll be handy to hang on to. Small price to pay, in my mind, for a little bit of extra peace of mind.

Bill

[rhsgypsylady]

I wonder just how many sink hole cases they've actually had in The Villages? It would be interesting to know!

How would one go about finding out the answer to skyguy's questions. I too would be interested in knowing, and which areas are more prone than others to have sinkholes.

[mulligan]

The most prone area is the entire state of florida. The state sits on a layer of limestone that is constantly dissolving. It's pretty much a crapshoot wherever your home is, unless its on driven pilings.

[rubicon]

For you folks reading this thread keep in mind that it is a policyholder's responsiblity to prove to an insurnace company that they have a legitimate claim. However it is the insurance companies obligation to prove an exclusion exists. This could get tricky with these types of claims and the reason the insurer worded the proposal concerning an earlier post on drilling to determine the cause of loss. It is also true that a good number of these claims amount to a total loss. This same sort of thing occurs with claims that require remediation such as oil spills or mold/mildew claims water damage. There was a claim in MN on a home valued at $5million with $4 million in water damages. The moral of the story is you don't always get what you pay for. I would expect for $5 million that if the entire world blew up that house would be intact floating in space.:pepper2:

[batman911]

There are maps of Florida sink holes on the web. Just Google it and the maps will show the frequency of sink holes in each county.

[PennBF]

If you are interested or have questions regarding sink holes you should
attend the POA Meeting on April 21st as the principle speakers will address
them in The Villages and an Insurance Rep on Policies to cover them. THe
meeting is at Laurel Manor and starts at 7PM. You do not have to be a
member of POA to attend but should join to help them. THere is a $10 annual
member fee for the household.:BigApplause:

[784caroline]

Dont forget that a TOTAL LOSS for sink hole damage most likely does not include the value of the property...but who in their right mind would rebuild on property where a known sinkhole exists without alot of added foundation pier features!!