Sink Hole Insurance

[bobdel]

Just got the insurance renewal and sink hole insurance went to a 10% deductible for this year. Was told that most carriers either are dropping coverage or going to 10% or more deductible due to the large amount of claims and fraud. Has anyone else had problems with this coverage recently?

Thanks

[another Linda]

Our insurance wouldn't renew the sinkhole coverage until we had an inspection. First was a free "area" survey, and if there weren't any sinkholes within a certain distance, then next we could go for a paid inspection of our property. We didn't pass the first survey so they cancelled ours. Never did find out where there was a problem.

[gomoho]

I would say if they are giving you "true" sinkhole insurance which covers more than a catastrophic collapse go for it. Most people can't get that.

[Carla B]

Yes, ours went from $500 deductible to 10% deductible, as was predicted over the last year or so. The premium went down slightly to "offset" the raise.

[chuckinca]

The 10% deductible is 10% of the value of your home that you must cover before the insurance company starts paying.

. . . Next thing to get a 10% deductible will be hurricane/tornado insurance.

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[Carla B]

You could be right about how the insurance companies will rate hurricane/tornado insurance, now that they've addressed sinkhole insurance to their advantage.

Nevertheless, the difference here for hurricane insurance is huge vs. South FL. We paid $1400/year for $70K insurance for the interior only of a condo in south FL and were lucky to get it east of their arbitrary "demarcation" line. However, sinkholes were not a problem there.

[KittyKat]

I would say if they are giving you "true" sinkhole insurance which covers more than a catastrophic collapse go for it. Most people can't get that.

I believe you have that backwards; hence the word "catastrophic." That's when the house has been condemned. Sinkhole coverage is for when a sinkhole occurs in your yard but does not include your house. That can be costly either way but better 10% than 100%.

We had the inspection. Our cost was $29 and State Farm paid the other half. The man looked inside & outside our frame house looking for cracks. Finding none, we passed. Since our street is down a hill we didn't opt for the insurance.

[Carla B]

Gomoho is correct. All HO policies cover catastrophic ground collapse but sinkhole coverage is an additional rider. Your slab may exhibit major cracking and separation, but not be swallowed in a hole. That's when sinkhole coverage, if you have it, kicks in.

[Quixote]

My HO policy just renewed (end of May) with exactly the same coverages as the preceding years, which includes $500 deductible for the sinkhole rider and definitely no inspection requirement. I was led to believe that because I am renewing rather than writing a new policy, I am grandfathered. From what I'm reading on this thread, though, maybe this varies from company to company?

[Carla B]

Don't know, Quixote. We have ASI through The Villages Insurance Agency.

[Mack184]

There are already multiple threads on this issue. It's been discussed over & over.

[chuckinca]

We also have ASI insurance thru Villages AAA. Have had it since early 2005.

Villages AAA rep told me recently that existing "AAA Insurance" policies policy holders coverage didn't change but that ASI and other companies they sell did.
I thanked them for savings us a few dollars for the past 8 years by selling us ASI instead of the costlier AAA insurance.


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[Mack184]

Villages Insurance has done an excellent job for us, but unfortunately "sinkhole" (NOT catastrophic ground collapse) insurance is going the way of the dodo.

[GatorFan]

Sinkhole coverage will not pay unless there is damage to the home. It has never paid for a sinkhole in yard. Condemned means home is not liveable until repairs are made. County will condemn your home for other losses if your home is not safe to live in until repairs are made. Cat ground collapse is collapse of land with damage to home. There is no grandfathered in clause. All companies can non renew current policies and reissue on renewal without sinkhole and require inspection which is very hard to pass or renew with10% deductible. The State of Florida changed the law.

[TexaninVA]

Just got the insurance renewal and sink hole insurance went to a 10% deductible for this year. Was told that most carriers either are dropping coverage or going to 10% or more deductible due to the large amount of claims and fraud. Has anyone else had problems with this coverage recently?

Thanks

Some of this has already been covered, but just to clarify � we�re talking about two insurable events.

The first is �Catastrophic Ground Cover Collapse� as opposed to a �sinkhole�. CGCC is defined as damage that is �abrupt,� �clearly visible� and involves �structural damage.� Often the house will be condemned should it become too dangerous to live in. The good news is any FL homeowner�s policy should automatically include this coverage. CGCC does happen from time to time in TV. About 12-18 months ago, several houses near Cane Garden were impacted by CGCC. The risk seems to be higher near water and/or very flat areas of the golf course, and less so on a more hilly terrain or lot.

You�re talking about the �Supplemental Sinkhole� coverage. You can usually get them for new homes south of 466A but they are only issued by a limited number of companies. However, if you can get SS, it�s going to be 10%. If your house does not pass muster based the risk of sinkholes per the geographic area (actually the address), it will be inspected. If it fails, no policy will be written, and you then become �self insured.�

Think of sinkholes as kind of a slow motion collapse. You wake up one day and your door doesn�t shut, or windows are misaligned, type of thing. If it happens it will be distressing. Often it can be fixed, but it�s going to be expensive.

[Quixote]

W also have ASI insurance thru Villages AAA. Have had it since early 2005.

Villages AAA rep told me recently that existing "AAA Insurance" policies policy holders coverage didn't change but that ASI and other companies they sell did.
I thanked them for savings us a few dollars for the past 8 years by selling us ASI instead of the costlier AAA insurance.


.

In other words, it does vary from company to company. If ASI (through AAA) has changed its sinkhole coverage deductible from $500 to 10 percent on renewal, while AAA's own insurance has kept the $500 deductible, I feel more confident, well, at least for another year. Who knows what'll happen next year....

[KittyKat]

Gomoho is correct. All HO policies cover catastrophic ground collapse but sinkhole coverage is an additional rider. Your slab may exhibit major cracking and separation, but not be swallowed in a hole. That's when sinkhole coverage, if you have it, kicks in.

Isn't that what I wrote? Gomoho is saying sinkhole coverage is greater than CATASTROPHIC coverage and that's not true. If a sinkhole swallows your house or part of your house & your house is condemned then that is CATASTROPHIC. Any damage to your property up to your house being condemned is when sinkhole coverage pays. I agree with what you say about the HO insurance policies & rider.

[gomoho]

Uh, Gomoho never said that!!!

[gomoho]

Some of this has already been covered, but just to clarify � we�re talking about two insurable events.

The first is �Catastrophic Ground Cover Collapse� as opposed to a �sinkhole�. CGCC is defined as damage that is �abrupt,� �clearly visible� and involves �structural damage.� Often the house will be condemned should it become too dangerous to live in. The good news is any FL homeowner�s policy should automatically include this coverage. CGCC does happen from time to time in TV. About 12-18 months ago, several houses near Cane Garden were impacted by CGCC. The risk seems to be higher near water and/or very flat areas of the golf course, and less so on a more hilly terrain or lot.

You�re talking about the �Supplemental Sinkhole� coverage. You can usually get them for new homes south of 466A but they are only issued by a limited number of companies. However, if you can get SS, it�s going to be 10%. If your house does not pass muster based the risk of sinkholes per the geographic area (actually the address), it will be inspected. If it fails, no policy will be written, and you then become �self insured.�

Think of sinkholes as kind of a slow motion collapse. You wake up one day and your door doesn�t shut, or windows are misaligned, type of thing. If it happens it will be distressing. Often it can be fixed, but it�s going to be expensive.

I'm curious as to why they automatically offer on new construction and is it then grandfathered or are they faced with the same renewal dilemma?