Insurance Question
 

While not mandated for the cash purchase of a new, never lived-in home from The Villages Corporation, what are your suggestions on purchasing / not purchasing the following at closing:

Title Insurance
Flood Insurance
Using an attorney at closing
Homeowners insurance

Thanks

Title insurance - yes
Flood insurance - no
Using an attorney - no
Homeowners insurance - yes

Insurance
 

Those are questions best answered by your real estate agent. They are the professionals. They know first hand the situation, the house and your needs to best protect your interests.

On new, never-lived in home:

Title insurance - No
Flood Insurance - Depends on location
Using an attorney - No
Homeowners Insurance - Yes, and with sinkhole coverage

Agree 100%. I don't have flood insurance, I live on a lake so I think I'm going to get it this year.

I think it is important to know that, if you are a buyer in Florida, you do not have a real estate agent. Real estate agents represent the seller.

I agree with the sinkhole coverage. And, there is a difference between "sinkhole" and "catastrophic ground collapse" coverage. You should make sure your policy specifically states "sinkhole" coverage.

You omitted Hurricane insurance.

Please elaborate---
What is the difference ?

It is very complicated, and even many insurance agents cannot explain it accurately. But, basically, sinkhole coverage will cover any damage to your property, even if your house has no damage. I think that catastrophic ground collapse coverage may not repair a sinkhole in your front yard, if it did not damage or threaten your house. If you buy a new house, you can most likely get sinkhole coverage, but it is harder to get it on a pre-owned house. I have found that it is very difficult to get straight answers about these coverages from insurance agents. My policy with ASI purchased through The Villages Insurance has sinkhole coverage. Other agents tried to claim they were selling me sinkhole coverage, but, when I called the companies directly, they admitted that it was not. Good luck.

All home owner policies in Florida have "Sinkhole" coverage but that means if the ground opens up into an actual hole and your house at least partially collapses into it you are covered. This kind of event happens in a day or a few days.

The other kind of "sinkhole" insurance covers subsidence. Subsidence is a slow and slight collapse of the ground may not even be visible surface. It usually starts with small cracks appearing in the wallboard or tile and just keeps on expanding. Over time no sinkhole may ever appear on the surface but your house is damaged, maybe to the point of being condemned. That's the kind of sinkhole insurance that is available as an add on or separate policy. In some cases you may not be able to get subsidence insurance. This kind of event might continue for months.

Florida law defines "sinkhole" and "catastrophic ground cover collapse", and they are two different things, and the legal definitions are about as clear as mud. If you ask five insurance agents to describe the difference, you will get five different answers. If you ask a lawyer, they will tell you that many insurance agents are misrepresenting catastrophic ground collapse as sinkhole coverage. Youtube has several videos by lawyers who try to describe the differences, and they say that you need sinkhole coverage to protect your property. Sinkhole coverage is better, and, if you have it, your policy declaration page will use the word "sinkhole". If it says "catastrophic ground collapse", then you don't have it. I wish this issue were more clear, but it just isn't. Here is a Youtube video that explains the issue by an attorney.

Sinkhole Activity vs. Catastrophic Ground Collapse: Home Insurance in Florida - YouTube

The listing agent represents the seller. The buyers agent represents the buyer and owes his full fiduciary duty to his client, the buyer.
Your agent should be answering those questions. Regards to flood insurance your agent should know if your in a low area that was previously flooded as with the last hurricane. Some properties on high ground may not need flood insurance, if you were in silver lake area you were flooded out. I’d be asking my real estate agent these questions, not random people.

It is not a practice in FL to use an ATTY. Title Co. are the means for closing. So suggest title ins. for sure, depending on what part of TV probably will not need flood ins. (ask your potential neighbors). The Villages Ins. CO. is an excellent broker for all of your insurance needs. I would strongly suggest sinkhole ins.

Good Explanations;

What Every Floridian Should Know - Florida has more sinkholes than any other state in the nation. A recent change in Florida law requires authorized insurers to cover “catastrophic ground cover collapse,” but damage caused by a sinkhole may not be covered by your policy.

That’s because the law defines catastrophic ground cover collapse differently from sinkholes.

Florida law defines a sinkhole as “a land form created by subsidence of soil, sediment, or rock as underlying strata are dissolved by groundwater. A sinkhole may form by collapse into subterranean voids created by dissolution (the dissolving) of limestone or dolostone or by the subsidence as these strata are dissolved.”

“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.”

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.

All insurance companies licensed to do business must offer sinkhole coverage, usually as an addendum or rider to an existing policy, and for an additional premium charge. However, insurance companies may require an inspection before extending coverage. If sinkhole activity is present on the property or within a certain distance of the property to be insured, the insurance company may decline coverage.

Hope this helps - Get them to condemn and kick you out!

All licensed real estate agents have a fiduciary responsibility to all parties involved in the transaction. But, that is different from representing the buyer as his/her legal "agent". In a typical real estate transaction in Florida, the seller pays the entire commission, not the buyer. Buyers should understand that, even though an agent is showing them properties and answering questions, the agent almost always acts as the agent for the seller and has a legal contract with the seller. There is no contract between the agent and the buyer, and no legal representation, because the buyer does not pay any money to the agent.

As I said, the legal definitions are as clear as mud. If you don't have the sinkhole coverage recommended in the posted video, good luck getting the insurance company to pay the claim.

I passed on the title insurance but the bank has it. I have hurricane coverage and both sink hole coverages. I think the simple sink hole has a deductible of $10k but the other is $500 or something like that. Did not go with flood and hopefully that is not a mistake but the Village water system is all connected so the ponds are somewhat self leveling. We closed through the mail, the bank sent us everything, we signed and sent it back, no attorney used.

The bank's title insurance will protect the bank, but won't protect you, if the title is found to be defective. You would need an owner's title policy, but I can understand why some people don't buy it on a new house. But, I once bought a pre-owned house that did not have a clear title because a previous owner had sold the house without getting his estranged wife to sign the deed. If the title search had not revealed the situation, title insurance would have been useful.

Best talk to a licensed insurance agent to get correct answer about sinkhole coverage. Ask for copy of actual sinkhole endorsement. Catastrophic ground collapse has its own form.

If you qualify there are companies offering deductible as low as $500.00 for sinkhole. Deductible offered is based on how the company filed with State of Florida in their rating.

Most companies filed 10% of coverage A and some filed with deductible same as your all perils deductible.

I sincerely appreciate all the information provided regarding insurance for a newly purchased home in The Villages.

Would you guys be so kind as to explain “Golf Cart Insurance”. What type of insurance would be recommended for Golf Carts and usual limits on policy.

THANKS !

Your liability is no different than your auto exposure. Limits should be enough to protect your assets in the event of a liability claim. .

If you apply for an umbrella policy that company will dictate the limits of liability you must have on the underlying policies, i.e., auto, golf cart, residence, etc.

I have American integrity homeowners insurance for a two bedroom, two bath, courtyard villa and the rate increased from $498 to $629 which I thought was high.
I have been getting quotes and the best one is from a company called “National Specialty Insurance Company” administered by “Velocity” for $488 for the same coverage. Has anyone ever heard of them or had experience with them?

IMHO


Yes
No
no
yes

agree with these

purchase Flood now or in the next few months. They won't issue flood ins if there are any hurricanes in the ocean. Also they require you to wait 90 days before it goes into effect. House ins should cover hurricanes. (house ins covers falling water, flood ins covers rising water.)

Clarifying about The Villages Sales Agents and Realtors: The only people who can sell you a NEW house in The Villages are licensed Sales Agents who work for the Developer of The Villages. As you can imagine, their first loyalty is to the Developer, not the buyer. They are not Realtors; Realtors are members of the Board of Realty, these are the people who work for places like ReMax, Grizzard, etc. The Developer does not allow them to sell his new houses in The Villages. In other areas of Florida some other Developers do allow Realtors to sell their homes and some do not. So in summary, they may have the same State of Florida Sales Agent license but who they work for is an important consideration. (I am a retired Realtor.)

this link has good info re: sinkholes https://www.poa4us.org/bulletins_fil...etin201808.pdf
lawyer if you need one it should have been before you signed the purchase contract
flood ins home own ins only you can answer this if there is any damage to your home even if fire burns it to the ground no insurance your bank account pays so your answer is ?

Title ins if there is any thing wrong with the title to your property you loose the property Period end of discussion. welcome to the Villages

you should have homeowners ins. Prior to closing if you want immediate protection. The rest is up to you. Is this your first house?

Not true. Most agents in Florida, these days, are Transactional agents, which means they represent the transaction, but still owe you some duties.

If a real estate agency is a Single Agency (not too many around these days) then they represent the seller, but if you use a real estate agent to represent you, as a buyer, for a listing in that agent's single agency's office, then the agent needs to become a Transactional agent, because they can't represent two people at the same time as a single agent.

Check to see if the agency is a Single Agency, or a Transactional Agency.