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!