Sinkhole Insurance

[CruiseZ]

We are coming down in April to look at resales. Is it true that we won't be able to get sinkhole coverage???
It could be a deal breaker :-(

[Bill-n-Brillo]

Not true!

Check out the "Search" function in the toolbar towards the top of your screen. Enter 'sinkhole coverage' to see numerous threads on the topic.

Your best bet for determining coverage availability would be to talk with an insurance agent of your choice in the area for their feedback.

Bill :)

[JimJoe]

We are coming down in April to look at resales. Is it true that we won't be able to get sinkhole coverage???
It could be a deal breaker :-(

Call a few insurance companies and find out. Names were mentioned in another post. Do not let rumors stop you from anything. Mom always said, find out from the horse's mouth. I wonder if that is an indirect reference to the other end? We never accept info from it.
jj

[kathyzapp]

We are coming down in April to look at resales. Is it true that we won't be able to get sinkhole coverage???
It could be a deal breaker :-(

We got our sinkhole coverage from AAA in September.

[784caroline]

Just remember in checking with insurance companies that "Catastrophic Ground Cover Collapse", which every Florida homeowners policy should have, is different than "Sinkhole loss". In this senario there typically is a visible ground depression and the structure is condemed or ordered to be vacated by the county. Deductible is normally the same as your "all other perils" portion of your policy.

Sinkhole loss is the "gradual" settlement or weakening of the earth supporting your property...common indicators are cracking of the foundation or walls, doors and windows not opening properly. Some insurance companies are writing this coverage BUT it may come with a deductible as high as 10%....so on a $250,000 you would potentially be faced with a $25,000 bill if something devastating would happen.

[starflyte1]

784Caroline, Does Catastrophic Ground Cover Collapse, replace Sinkhole coverage, or do you need both?

I have a 17 year old home in Hacienda East and was refused sinkhole coverage after inspection in December. Reason given was something like sinkholes with in so many miles of home. The inspector said the house was fine, but the company refused to write the insurance. I had had sinkhole coverage until December. I do have catastrophic collapse coverage.

[aljetmet]

Unfortuantely you need both if you are risk adverse.

I would check with other Insurance companies/agents.

[784caroline]

You defintiely should have both. I personally know of houses that had "Sinkhole" damage and the insurance company ended up paying the total value of the policy so if you have damage related to "Sinkhole activity" it can be very expensive to fix. What happened in the case I know of, the insurance comapny paid of the home owner policy value (no land) and then the sinkhole repair company bought the house for just over the value of the land and is using it as a rental property. ...so the original owner moved and came out probably better than 100%. This is not uncommon as to how it all ends up.

[daca55]

I have both coverages and I got them in Dec 2011 when I bought my home. I have a small deductible but I have heard recently that AAA insurance co will only let you get a sink hole coverage with a very high deductible that I understand is around $14,000. Has anyone else heard this? :$:

[Bill & Carolyn]

We are coming down in April to look at resales. Is it true that we won't be able to get sinkhole coverage???
It could be a deal breaker :-(

Yes, it's true. Apparently the Insurance companies that still insure homes in Florida have all dropped their sinkhole coverage (no collusion there I'm sure).

The still cover 'catastrophic' sink hole collapse' (those that open up and swallow your home in a short period of time) but not the 'gradual' sink hole.

I know because I own a home in Pennecamp and originally had it insured as a 'vacation property' not my permanent residence (I didn't actually know I was doing that at the time, I just relied on TV to set my insurance up and that's the way the mortgage company did it). It is now a primary residence and I tried to change the policy to add additional protections, but, the Insurance agent told me the company wasn't accepting new business in Florida and technically, this would be new business. She then told me that all insurance companies accepting new business had dropped coverage for the 'gradual sinkhole'.

[Bill-n-Brillo]

Bill & Carolyn, not to be argumentative - - - but please contact some different agents with different companies re: no sinkhole coverage from any company. I get the opposite story from our agent - coverage IS still being written though it's not like falling off a log to get it.

If you need a name and a phone number, please PM me.

Bill :)

[KateTut]

I would second Bill's recommendation to contact insurance companies and talk to them directly. For example, we have Allstate insurance in Ohio, and went to see an Allstate agent when we decided to build in TV, only to discover Allstate no longer writes homeowner policies in Florida. They do, however, have homeowner coverage through a secondary company which does offer sinkhole coverage with an inspection. I am not sure if that applies to resale homes, as we are building, but it points out the value of talking directly to the insurance companies.

[CruiseZ]

Thanks everyone! We will just have to talk to some agents before we buy!

[aljetmet]

Just remember in checking with insurance companies that "Catastrophic Ground Cover Collapse", which every Florida homeowners policy should have, is different than "Sinkhole loss". In this senario there typically is a visible ground depression and the structure is condemed or ordered to be vacated by the county. Deductible is normally the same as your "all other perils" portion of your policy.

Sinkhole loss is the "gradual" settlement or weakening of the earth supporting your property...common indicators are cracking of the foundation or walls, doors and windows not opening properly. Some insurance companies are writing this coverage BUT it may come with a deductible as high as 10%....so on a $250,000 you would potentially be faced with a $25,000 bill if something devastating would happen.


Was thinking about this post that I read earlier today.
If a house is valued at say $250,000 and their was $250,000 worth of damage , how in the world would it not be condemned and not covered under
"Catastrophic Ground Cover Collapse" ??

So even if you get sinkhole coverage with 10% deductible I'm thinking that if you have a claim if should not be too bad. Something to discuss with you insurance agent for sure. Although I would surely be annoyed if I had to come up with say $5K to get the house fixed up. Just sayin.

[784caroline]

A house would not be condemed for having cracks in the foundation or the walls, or if the windows or doors were sticking and not closing properly. But depending upon the severity of the cracking, it is very expensive to shoreup or "underpin" an entire house...plus to pay for the residents having to vacate the property while the work is being done....it all totals up. You only need XX percent of damages or total expenses that an insurnce company is expected to pay for them to pay the entire amount of the policy...and then its over with for the insurance company. Its not like the house is going to fall into a hole...if that were the case , catastrophic ground collapse insurance would take over.

A $50K bill would be minimal and 10% deductible is $5K out of your pocket. The option is ......what????

This said , it happens very infrequently....but does happen.

[aljetmet]

Good point. I think I wouldn't shore up the house though, just wait till it gets condemned. :icon_wink:

[CarGuys]

Just remember in checking with insurance companies that "Catastrophic Ground Cover Collapse", which every Florida homeowners policy should have, is different than "Sinkhole loss". In this senario there typically is a visible ground depression and the structure is condemed or ordered to be vacated by the county. Deductible is normally the same as your "all other perils" portion of your policy.

Sinkhole loss is the "gradual" settlement or weakening of the earth supporting your property...common indicators are cracking of the foundation or walls, doors and windows not opening properly. Some insurance companies are writing this coverage BUT it may come with a deductible as high as 10%....so on a $250,000 you would potentially be faced with a $25,000 bill if something devastating would happen.

Well said and correct. Many people have coverage that does not cover both.

It's not a panic nor a deal breaker if you check with a agent first. They need location. Home style and any additions such as pool extended lani etc.:posting:

[Advogado]

Yes, it's true. Apparently the Insurance companies that still insure homes in Florida have all dropped their sinkhole coverage (no collusion there I'm sure).

The still cover 'catastrophic' sink hole collapse' (those that open up and swallow your home in a short period of time) but not the 'gradual' sink hole.

I know because I own a home in Pennecamp and originally had it insured as a 'vacation property' not my permanent residence (I didn't actually know I was doing that at the time, I just relied on TV to set my insurance up and that's the way the mortgage company did it). It is now a primary residence and I tried to change the policy to add additional protections, but, the Insurance agent told me the company wasn't accepting new business in Florida and technically, this would be new business. She then told me that all insurance companies accepting new business had dropped coverage for the 'gradual sinkhole'.
I just got off the phone with the Villages Insurance Agency. Here is my take on the story I got:

That Agency can get you sinkhole coverage if you buy a new home [convenient for the Developer], but if you buy a preowned home, getting such coverage will be difficult or impossible, depending on where the preowned home is located. [Query on coverage when you renew?] To get coverage on a preowned home, if it is in an insurable area, you may have to pay for an inspection-- prices range.

If, as in my case, you have coverage in an existing policy, the insurance companies have been continuing coverage on renewals. [Query on the future?]

Thus, if you are going to buy a house and are unwilling to assume the risk of sinkhole damage, it seems that you should talk to an agent(s) about coverage on the specific house that you are considering.

[mfisette]

Just remember in checking with insurance companies that "Catastrophic Ground Cover Collapse", which every Florida homeowners policy should have, is different than "Sinkhole loss". In this senario there typically is a visible ground depression and the structure is condemed or ordered to be vacated by the county. Deductible is normally the same as your "all other perils" portion of your policy.

Sinkhole loss is the "gradual" settlement or weakening of the earth supporting your property...common indicators are cracking of the foundation or walls, doors and windows not opening properly. Some insurance companies are writing this coverage BUT it may come with a deductible as high as 10%....so on a $250,000 you would potentially be faced with a $25,000 bill if something devastating would happen.
Here is the definition of Catastropic Ground Cover Collapse (CGCC) below. You may also want to consider the law of probability specific to a sink hole. For example, your lot is typically 80 ft. x 80 ft. and your home is positioned roughly in the center of your lot. If your were to have a sink hole "ON" your property, what would be the chances that it would be catastropic? So my question is why are you concerned with the definition of sink hole coverage vs. CGCC?

Catastrophic Ground Collapse.
Florida law affirms that catastrophic ground collapse does not occur until all of the following four conditions have been met:
• There is an abrupt collapse of the ground cover;
• There is a depression in the ground cover clearly visible to the naked eye;
• There is structural damage to the building, including the foundation;
• and
• The structure is condemned and ordered to be vacant by the local government agency responsible for issuing condemnation orders. Loss of Certificate of Occupancy (CO).