Homeowners' Insurance:

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  #31  
Old 07-30-2020, 06:12 PM
Stu from NYC Stu from NYC is offline
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Originally Posted by SharonW View Post
Get that in writing with signature of agent who told you that
Good advise
  #32  
Old 07-30-2020, 06:22 PM
retiredguy123 retiredguy123 is offline
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I wouldn't spend a lot of time shopping for a low rate on homeowners insurance, unless you want to switch companies every year. Insurance companies are notorious for raising your rate as much as 40 percent when you renew. Also, they do not reward customer loyalty. Just the opposite. If you are a loyal customer for many years, you are more likely to get a huge premium increase than a new customer. They call it "price optimization".
  #33  
Old 07-30-2020, 06:31 PM
SharonW SharonW is offline
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Default Sinkhole vs cat ground collapse

I am a retired insurance agent and reading these comments cause me to be very concerned that most have not been explained correctly what cat ground collapse covers or what sinkhole coverage actually covers. I strongly recommend you call and set up a review with your agent and get a copy of the actual policy That explains cat group collapse and a copy of the sinkhole endorsement.

The coverage is the same regardless of what company you purchase from. The only difference is your out of pocket deductible. When the State of Florida changed automatic coverage to catastrophic ground collapse and made sinkhole an endorsement that you have to purchase they offered all companies an option as to how they filed the sinkhole deductible that they would offer. They got to chose a flat 10% of Dwelling coverage or they could chose the all perils deductible. The companies then calculated and filed the rates with the State of Florida based on the deductible offered through their state filing. Only a few companies filed the all perils deductible and the rest 10%. I know two companies, Allstate and State Farm filed all perils deductible which means if you have a $500.00 or $1000.00 deductible your sinkhole deductible will be same. Of course your premium will be higher because in the event of a sinkhole claim your out of pocket is much lower.

Example: home insured for $250,000 with a 10% deductible means you pay $25,000 deductible. If you have a $1000 all perils deductible you only pay $1000.

Ask your agent if you have a sinkhole claim how long you have to come up with that deductible? Ask your agent if land is covered if no sinkhole damage to structure? (Remember you are insuring your structure not the land) You can always call the department of insurance in Tallahassee and ask the question.

It bothers me that agents are not explainIng coverages. One other thing, will your agent help you if you have a claim or just transfer you to a claims department? Find an agent who will walk you through claims process and help you if you need help.
  #34  
Old 07-30-2020, 06:53 PM
retiredguy123 retiredguy123 is offline
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Quote:
Originally Posted by SharonW View Post
I am a retired insurance agent and reading these comments cause me to be very concerned that most have not been explained correctly what cat ground collapse covers or what sinkhole coverage actually covers. I strongly recommend you call and set up a review with your agent and get a copy of the actual policy That explains cat group collapse and a copy of the sinkhole endorsement.

The coverage is the same regardless of what company you purchase from. The only difference is your out of pocket deductible. When the State of Florida changed automatic coverage to catastrophic ground collapse and made sinkhole an endorsement that you have to purchase they offered all companies an option as to how they filed the sinkhole deductible that they would offer. They got to chose a flat 10% of Dwelling coverage or they could chose the all perils deductible. The companies then calculated and filed the rates with the State of Florida based on the deductible offered through their state filing. Only a few companies filed the all perils deductible and the rest 10%. I know two companies, Allstate and State Farm filed all perils deductible which means if you have a $500.00 or $1000.00 deductible your sinkhole deductible will be same. Of course your premium will be higher because in the event of a sinkhole claim your out of pocket is much lower.

Example: home insured for $250,000 with a 10% deductible means you pay $25,000 deductible. If you have a $1000 all perils deductible you only pay $1000.

Ask your agent if you have a sinkhole claim how long you have to come up with that deductible? Ask your agent if land is covered if no sinkhole damage to structure? (Remember you are insuring your structure not the land) You can always call the department of insurance in Tallahassee and ask the question.

It bothers me that agents are not explainIng coverages. One other thing, will your agent help you if you have a claim or just transfer you to a claims department? Find an agent who will walk you through claims process and help you if you need help.
Some agents are not explaining the coverage because they don't understand it themselves. I wouldn't trust an agent to explain it properly. When I bought my house, I got contradictory and confusing information from several insurance agents. My Allstate auto insurance agent quoted me a homeowners policy from a company in Orlando and he told me that it included sinkhole coverage. I was suspicious, so I called the company directly, and found out that it did not have sinkhole coverage. I think the policy needs to include the word "sinkhole" on the declaration page, or you don't have the coverage. But, many insurance agents are not capable of fully explaining the policies they sell. You need to actually read the policy. Buyer beware.
  #35  
Old 07-30-2020, 09:20 PM
SharonW SharonW is offline
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That’s why you ask for copy of endorsement and ask questions. An agent who knows what they are doing should be able to highlight on endorsement and explain. Bottom line is Cat ground collapse must be sudden and immediate structure damage. Home must Also be condemned by county and not livable.

Sinkhole has to have structural damage. Structure does not have to be condemned. Sinkhole does not have to be sudden and immediate damage. Could open and then grow and eventually damage your structure.

Bottom line everyone should purchase sinkhole coverage because it is the broadest coverage you can have to protect your investment. Choose a deductible you feel you can be comfortable paying if you were to have a claim.

Last edited by SharonW; 07-30-2020 at 09:42 PM. Reason: Add to comment
  #36  
Old 07-31-2020, 03:26 PM
bandsdavis bandsdavis is offline
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Default SInkhole coverage

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Originally Posted by Bjeanj View Post
Our homeowners policy covers catastrophic sinkholes. We found out that if we want the other type, we would have to pay half the cost of an inspection prior to obtaining the other sinkhole insurance. Well, we don’t know what that cost would be, nor did Villages Insurance. Then, if we got approved, we don’t know what this coverage would cost.

So, we’re in the process of mulling this over.
We just switched to Allstate and got the Sinkhole rider (over and above the catastrophic coverage) with a $1,000 deductible for $64 per year. No inspection required. FYI, our house was built in 2009.
  #37  
Old 07-31-2020, 04:18 PM
will1546 will1546 is offline
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I have ASI for a villa which I rent out and premium jumped $1000 to $1400!
  #38  
Old 07-31-2020, 04:22 PM
Cupcake57 Cupcake57 is offline
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Quote:
Originally Posted by newgirl View Post
I was told I did not need it where I am
Maybe you are confusing sinkhole coverage with flood; they go by a map to tell if you need flood coverage.
  #39  
Old 07-31-2020, 04:45 PM
capecoralbill capecoralbill is offline
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Default Redlined areas of the Villages

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Originally Posted by bandsdavis View Post
We just switched to Allstate and got the Sinkhole rider (over and above the catastrophic coverage) with a $1,000 deductible for $64 per year. No inspection required. FYI, our house was built in 2009.
I know certain areas of the villages are 'red lined' and are not insurable against a certain type of sinkhole that does not affect the house.
Too bad the Developer does not set up a fund to help out, it's his reputation, so be it.
  #40  
Old 07-31-2020, 07:43 PM
SharonW SharonW is offline
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Default What?

Never heard that in all my years writing insurance. May I ask what kind of sinkhole you are talking about? A sinkhole is a sinkhole.

Last edited by SharonW; 07-31-2020 at 07:45 PM. Reason: Added
  #41  
Old 08-04-2020, 12:07 PM
capecoralbill capecoralbill is offline
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Types of sinkholes:
One Type:
Included in almost all policies:
Catastrophic ground cover collapse is defined as geological activity that results in all of the following: 1). The abrupt collapse of the ground cover; 2). A depression in the ground cover clearly visible to the naked eye; 3). Structural damage to the building including the foundation; and 4). The "insured structure being condemned and ordered to be vacated" by the government agency authorized by law to issue such an order for that structure.

The Other type:
Extra cost, and may not be available, due to red-lining.
This means that if your home is damaged by sinkhole activity, but does not meet all four criteria for catastrophic ground cover collapse for instance, you may have foundation cracks, but the home is still livable your insurance may not pay for the damage if you do not have "extra cost" ," Non catastrophic"sinkhole coverage.

Last edited by capecoralbill; 08-05-2020 at 02:18 PM.
  #42  
Old 08-04-2020, 03:07 PM
Ladygolfer93 Ladygolfer93 is offline
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That's for sure. I wanted my agent to put me with the SAME company for home and auto; a company I would recognize. But, when I Moved to Florida, agent insisted I NOT do that and put HOI with American Integrity. Never had a home or an auto claim, in Florida or in other states, however, this American Integrity raised my home owner insurance by $700 a ONE billing... mind you NEVER an inquiry, never a claim, nothing. Also have never run into a state like this where the "agent" is a kind of shadow person, one you never see, one who never checks with you once a year or so to go over things, very impersonal here. My "agent" told me not to even call his office about payment, "just go to the website of the company and pay your bill there" ! ! Dah ? I assume this person just wants a commission but other wise does not want any kind of relationship..... LOL ! What a business practice. Wonder what would happen if I ever need to actually USE the insurance, had an actual claim ? Scary thought !
  #43  
Old 08-04-2020, 08:18 PM
SharonW SharonW is offline
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Quote:
Originally Posted by capecoralbill View Post
Types of sinkholes:
One Type:
Included in almost all policies:
Catastrophic ground cover collapse is defined as geological activity that results in all of the following: 1). The abrupt collapse of the ground cover; 2). A depression in the ground cover clearly visible to the naked eye; 3). Structural damage to the building including the foundation; and 4). The "insured structure being condemned and ordered to be vacated" by the government agency authorized by law to issue such an order for that structure.

The Other type:
Extra cost, and may not be available, due to red-lining.
This means that if your home is damaged by sinkhole activity, but does not meet all four criteria for catastrophic ground cover collapse for instance, you may have foundation cracks, but the home is still livable your insurance may not pay for the damage if you do not have sinkhole coverage.

Where did you copy this wording?

Cat ground collapse is included in all property policies written in Florida and deductible is all perils deductible.

Actual claim example: sinkhole opened at corner of home where garage is located. Did a little damage to corner slab. Was not condemned by county so did not qualify for cat ground collapse. Insured did not have sinkhole coverage. Out of pocket was over $15,000 to have repaired. If they had sinkhole with 10% deductible, cost would have been below deductible so out of pocket would of been same. If they had sinkhole with a $500 or $1000 deductible repairs would have been done with not much out of pocket.

Sinkhole is added by endorsement and extra premium is charged. The endorsement coverage is the same regardless of what company offers. Only differences is out of pocket deductible State of Florida gave companies one of two options when the companies filed their state rates and thE option is the deductible. They could choose 10% of dwelling amount insured or the all perils deductible. Only a few companies elected to offer all perils deductible Allstate and State Farm are the two companies I know of that offer all perils deductible.

What most do not know is that one of the biggest concerns of property companies in Florida now is the age of your roof. Due to so many claims on roofs In Florida many companies now start looking at roofs at 10 years of age to qualify for a new policy. When you have a huge premium increase you will finD it difficult to find a new home policy if your roof is older than 10 years old. Sinkhole coverage is not difficult to get but qualifying For a home policy do to the roof age is the hurdle in today’s market.
  #44  
Old 08-05-2020, 09:21 AM
Carla B Carla B is offline
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Thanks for sharing your knowledge, SharonW. I'm curious as to why so many roof replacements are covered by insurance. For what reasons?
  #45  
Old 08-06-2020, 06:33 PM
SharonW SharonW is offline
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The sad thing about claims is that insurance companies will settle a claim vs legally challenging because the settlement is less than cost to legally challenge.
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