Sinkholes in Florida

[kittygilchrist]

http://www.dep.state.fl.us/geology/geologictopics/sinkhole/florida_sinkhole_poster.pdf

Ever wonder if you should get sinkhole insurance? Take a look at this link. There's a horrible story in today's news of a man swallowed in a sinkhole that opened under his bedroom.

[Rebel Pirate]

STORY HIGHLIGHTS from CNN at Sinkholes: common, costly and sometimes deadly - CNN.com (http://www.cnn.com/2013/03/01/us/florida-sinkhole-explainer/index.html?hpt=hp_t2)

Central Florida is particularly known for sinkholes
The state lies on limestone bedrock and often sees the phenomenon
Florida property owners filed 24,671 claims for sinkhole damage from 2006 to 2010
Florida sinkhole claims cost insurers $1.4 billion in that period, state Senate report says

[Cantwaittoarrive]

Florida is not the only state with this issue. Sinkholes, from USGS Water-Science School (http://ga.water.usgs.gov/edu/sinkholes.html)

Here is a quote from the article "The most damage from sinkholes tends to occur in Florida, Texas, Alabama, Missouri, Kentucky, Tennessee, and Pennsylvania"

[784caroline]

Again, what happen today as reported in the newspaper is a Catastrophic sinkhole...and all homeowner polices in Florida would be covered for this event.

This is entirely different than a gradual detoriation or settlement causing foundation cracks...the type of Sinkhole insurance being denied to most people.

[jimbo2012]

Ever wonder if you should get sinkhole insurance? Take a look at this link. There's a horrible story in today's news of a man swallowed in a sinkhole that opened under his bedroom.

Kitty you should get and are eligible to get sinkhole ins before you close, it is only available on new builds, by that I mean complete sinkhole not catastrophic.

[hotrodgirl]

Kitty-Jimbo is correct. I also got sinkhole insurance as well as the catastrophic. But to put your mind at ease somewhat, no sinkholes have been reported in our immediate area either. Better safe than sorry as the old adage goes!

[2BNTV]

http://www.dep.state.fl.us/geology/geologictopics/sinkhole/florida_sinkhole_poster.pdf

Ever wonder if you should get sinkhole insurance? Take a look at this link. There's a horrible story in today's news of a man swallowed in a sinkhole that opened under his bedroom.

There was another thread reporting about this unfortuate man. Amazingly, the house itself was standing and the hole was inside the house.

I think it's a prudent idea to get sinkhole coverage.

[Tellmeyourstory....]

Again, what happen today as reported in the newspaper is a Catastrophic sinkhole...and all homeowner polices in Florida would be covered for this event.

This is entirely different than a gradual detoriation or settlement causing foundation cracks...the type of Sinkhole insurance being denied to most people.

I was told the same thing and from what I understand this settlement, we had several neighbors that had this "settling" issue.

[Phanatic Luvr]

This is a picture I took about a year ago of a sinkhole that opened up behind Cane Gardens.

[rubicon]

STORY HIGHLIGHTS from CNN at Sinkholes: common, costly and sometimes deadly - CNN.com (http://www.cnn.com/2013/03/01/us/florida-sinkhole-explainer/index.html?hpt=hp_t2)

Central Florida is particularly known for sinkholes
The state lies on limestone bedrock and often sees the phenomenon
Florida property owners filed 24,671 claims for sinkhole damage from 2006 to 2010
Florida sinkhole claims cost insurers $1.4 billion in that period, state Senate report says

Well these figures say alot and explains why Florida insurers hiccuped over this coverage issue. I wonder just how many of those 24, 671 claims were actually for sink hole vis a vis normal settling and cracking which is more common? Well the catrostrophic coverage now answers that question for both the homeowner and the insurer

[Cantwaittoarrive]

Well these figures say alot and explains why Florida insurers hiccuped over this coverage issue. I wonder just how many of those 24, 671 claims were actually for sink hole vis a vis normal settling and cracking which is more common? Well the catrostrophic coverage now answers that question for both the homeowner and the insurer

Plus with the changes in actual sinkhole coverage there is now a 10% deductible on most if not all sinkhole policies and that 10% represents the value of the home not the cost to repair. Also the proceeds from the insurance must now be used to repair the home, unless you or your legal rep. negotiate the settlement with the insurance company then you don't legally have to use it to repair. What happened in the past is that many homeowners would get cracks and some settling of the home file a claim get the cost of remediating a sinkhole (could be $100K plus) pocket the money and not repair the "damage" and continue to live in the home.

[Mack184]

Florida is not the only state with this issue. Sinkholes, from USGS Water-Science School (http://ga.water.usgs.gov/edu/sinkholes.html)

Here is a quote from the article "The most damage from sinkholes tends to occur in Florida, Texas, Alabama, Missouri, Kentucky, Tennessee, and Pennsylvania"
KY, TN & PA "sinkholes" are more closely tied to coal mine subsidence. In fact on our PA home we carried state-sponsored mine subsidence insurance. Very inexpensive, but quite worth the investment.

When we bought down here our insurance agent at Villages Insurance told us as that by FL law as of 1/1/2012 sinkhole insurance was no longer part & parcel of your homeowner's policy for NEW customers. If you were buying a NEW policy you would have to have an inspection of your property PRIOR to a sinkhole policy being written. After the inspection report was filed your insurance carrier would then decide as to whether or not they would cover you. She warned us that no matter how good our inspection was our chance of getting a sinkhole policy was less than winning the Powerball twice in one day and getting hit by lightning when you're walking out the door with your winnings! LOL. We closed in November and she said that she hadn't had a sinkhole policy being approved for a pre-owned home yet that year.

She did tell us that in TV in Sumter county..IF..and only IF..you bought a brandy-new house that had NEVER been lived in, then she could get a sinkhole policy through one carrier, but it carried a 20-30% deductible.

We had a good inspection on our home and true to form we were denied sinkhole coverage. If you've got it..KEEP IT..If you dropped it, you most likely cannot get it back.

[janmcn]

So if you owned the house in Sunset Pointe that is pictured in post #9, you would have to pay to have the hole filled in, which I understand from other threads could cost thousands of dollars.

The owner moved out and is trying to sell it, but it's doubtful a buyer could get a mortgage and insurance.

[Ron1Z]

Does your sink hole ins. cover loss of life???

[mulligan]

That would be.............wait for it..................life insurance.

[TraceyMooreRN]

I would get sink hole coverage for the peace of mind. Simple as that--

[Mack184]

I would get sink hole coverage for the peace of mind. Simple as that--
Uh..Notice upper post. You essentially cannot get it anymore. In a very short time sinkhole insurance will be as extinct as the Dodo in FL.

There is also a distinct difference in FL between "Catastrophic Ground Collapse" and "Sinkhole" insurance. What happened to the people near Tampa is Catastrophic Ground Collapse & that IS a part of all FL homeowner's policies. "Sinkhole" insurance is different and covers (ed) less dynamic problems. For example..There is a major sinkhole down your street, but it does not make your home unliveable. However..it does cause some cracks in your walls or your concrete blocks. Catastrophic Ground will NOT cover those damages. "Sinkhole" insurance will (or would).

Currently in FL most insurance underwriters are now discontinuing the "Sinkhole" riders when in-force policies renew. Our agent at Villages Insurance told us about how many people locally came howling to the office when they found this out when their policies renewed in 2012. There will be more of that in 2013, and even more in 2014. Soon it will be gone all together. But remember..we're talking about "sinkhole" not "Catastrophic Ground Collapse". That's still in EVERY FL homeowner's policy.

In moving to Florida I learned more about "Sinkhole" insurance than I ever wanted to know. And I didn't learn it by rumor & speculation, I had our Villages Insurance agent go over it all step by step.

If you want "sinkhole" in FL you're very unlikely to get it. It's just the way it is.

[janmcn]

And keep an eye on the Florida Legislature when they begin their annual session on Tuesday. They promise to take up property insurance, and everytime they do, it seems the consumer always loses.

[cquick]

This is a picture I took about a year ago of a sinkhole that opened up behind Cane Gardens.

isn't that scary!

[graciegirl]

Please read Rubicon's post below. It makes a lot of sense.

[rubicon]

Plus with the changes in actual sinkhole coverage there is now a 10% deductible on most if not all sinkhole policies and that 10% represents the value of the home not the cost to repair. Also the proceeds from the insurance must now be used to repair the home, unless you or your legal rep. negotiate the settlement with the insurance company then you don't legally have to use it to repair. What happened in the past is that many homeowners would get cracks and some settling of the home file a claim get the cost of remediating a sinkhole (could be $100K plus) pocket the money and not repair the "damage" and continue to live in the home.

Cantwaittoarrive: I recall viidly reading about those accounts especially heavy claims in the Tampa-St Pete area. Some of these homeowners were milking the daylights out of these claims. So the insurance industry's response was was certainly expected. and I can't blame them in this case. Insuring property in the stae of Florida is a problem. Florida like new jersey and some other states tried to stat insure and lost or are losing their shirts. It is why Scott opened up an insurers ability to raise premium. in part to help subsidize and reduce the exposure and size of Citizens Property.

Did insurer's go overboard in the amount of premium increases and deductible amounts???? Only your actuary really knows.

[birdawg]

bump

[Mack184]

Cantwaittoarrive: I recall viidly reading about those accounts especially heavy claims in the Tampa-St Pete area. Some of these homeowners were milking the daylights out of these claims. So the insurance industry's response was was certainly expected. and I can't blame them in this case. Insuring property in the stae of Florida is a problem. Florida like new jersey and some other states tried to stat insure and lost or are losing their shirts. It is why Scott opened up an insurers ability to raise premium. in part to help subsidize and reduce the exposure and size of Citizens Property.

Did insurer's go overboard in the amount of premium increases and deductible amounts???? Only your actuary really knows.
Actually according to what our insurance agent told us, it was the FL legislature that enacted insurance "reform" and allowed the various FL underwriters to walk away from providing sinkhole coverage.

[Tellmeyourstory....]

This is a picture I took about a year ago of a sinkhole that opened up behind Cane Gardens.

This is NOT sinkhole. This is Catastrophic Ground Collapse
Every home insurance policy in the state of FL is covered for this subject to your regular homeowners deductible. The house is condemned or not livable while being fixed.

Sinkhole insurance is for the holes under the earth that we do not see, the home can be lived in while being fixed. This is subject to a special deductible, typically 10% now, but some insurance companies just don't cover it.

Also it is not because homeowners put false claims in to the insurance companies, but the sinkhole companies that scared homeowners into putting in a claim.

This happened right here in TV!!! One villa had some settling issues and they did find voids under the home, but of course there are voids all over Florida in the limestone. The sinkhole company was brought in by the insurance company and while they were in the neighborhood. The spoke to other neighbors, who suddenly then felt the need to call their own insurance company. Now most of the homes in the villa community have had sinkhole work done.
They didn't really have any issues in the first plaice, but they and hundreds of other claims are the reason why the verbiage on the policies have changed (must have damage to the home).
This and all the others are the reason why we either don't have the coverage or we have to pay 10% deduct.

I have done my homework on this, have purchased one of the homes and was able to get insurance and a mortgage.

[Dreamer61]

Is this in TV?