Insurance Denied Due to Sinkholes
 

I am in the process of buying a home and have to provide insurance. I was just denied insurance by Progressive because of a sinkhole 0.2 miles from the home. I am totally unaware of any sinkholes in the Village of Sunset Pointe. I have contacted the realtor but it's too late to contact anyone else. Does anyone know of a sinkhole(s) or know about denial of insurance due to them? Now I'm lost on what to do.

Get another quote from different insurance company see what they say? Or back out of deal?

Somewhere on this site was a thread on sinkholes. A 2017 map posted in that thread showed sinkholes or ground stabilization activities near Latta and Blythewood Loop, near the Hibiscus pool, near the pond along Westchester Way, and near Buena Vista and Bailey Trail. I can't speak to the accuracy of the map, you should try searching for the thread.

I would contact Villages Insurance. This is not an endorsement as a provider (though I use them) but if anyone would know how to deal with this situation, they should.

I am assuming that you are getting a mortgage and the mortgage company is requiring the insurance to get the loan? Otherwise, you wouldn't need insurance to buy the house. I would call The Villages Insurance who can probably get you insurance with another company. Or, the real estate agent may be able to recommend an insurance company. You may not be able to get "sinkhole" coverage, but all Florida policies must include "catastrophic ground collapse" coverage. After you buy the house, you may be able to shop around and get sinkhole coverage from another company.

Thank you!

I believe that USAA is now offerring sinkhole insurance.

:shrug: I kind-a remember a sinkhole somewhere near Cane Garden several years ago. Maybe someone who lives in the area will remember and tell you where.

Yellow dot shows where sink holes have occurred and at what elevation. You may have to zoom in on the photo to see them. The villages insurance broker can suggest which insurance companies cover for sink hole, I have Coastal.

Looks like it was near Latta Ct.

I switched insurance companies in 2018 with The Villages Insurance Agency, I dropped American Integrity after seven years because they kept raising their rates. I inquired about ASI (Progressive), they told me that ASI wasn't writing policies with sink coverage even then. I don't why someone would recommend them now. If you're with The Villages Agency ask them about Cabrillo Coastal Insurance. That's who they put me with and it saved me over $400 a year over American Integrity.

Cabrillo Coastal General Insurance Agency – Residential property insurance for hurricane-exposed areas.

There was two sink holes on Cane Garden Jacaranda nine 5th Hole left side, two homes side-by-side in the Village of Pennecamp. I played golf and there was yellow ribbon around both lots. A helicopter from one the Orlando stations was overhead for almost two days with a camera. I lived a mile away and I could hear the helicopter anytime I went outside. They filled them in with cement and dirt and heard no more after that about a problem. That was about 2015 I would guess. As I wrote above when I inquired two years, Progressive (ASI) doesn't write policies with sink hole, so you can get insurance but won't cover sink holes. In the OPs case, it sounds like they won't even write any if they know there was one in the area. Move on to another company like I did.

Never once ever heard anyone here denied insurance because of sinkholes.

We went through the Village Insurance Co. They wrote in 2 different types of sinkhole insurance into the policy. There have been sinkholes, 2 houses a mile from our house were destroyed a few years back.

Thanks for letting me know. The person I talked to said that the underwriter refused to carry the insurance. I know a lot about the purpose of insurance, but not why people can't get policies (with some exceptions). I have never been denied insurance and have owned my houses and vehicles.

I was told by Progressive they would not
write home insurance in Florida. Does anyone have Progressive here?