Sink hole insurance
 

I have read conflicting stories on sink hole insurance. So, my questions ---

1) Is it available for purchase of resale homes, or new homes only?

2) Are there different levels of coverage?

3) If available for purchase, is the premium based strictly on the value of the home? What kind of insurance co$t might apply?

4) What is the frequency in TV does sink holes happen?

5) Anything I missed?

Gene

That's probably what you will have is "coflicting stories" unless you talk to a insurance agent. Typically on TOTV you will get many opinions that most likely will be in conflict.
I suggest you call The Villages Insurance and pose your questions to them.
866-556-0706

There is a huge article answering most of your questions in the POA (property owner's association) Property Owners, Association of Florida bulletin which is put in everyone's driveway yesterday. Very informative.
If you can get sinkhole insurance from your carrier, it is wise to buy it. Yes there are quite a few sinkholes in Florida because of the limestone. From my last inquiry I've heard that The Villages Insurance is offering sinkhole insurance for new builds. You may be able to get it from others if you pay for an inspection, but it is difficult to obtain. Do some research on Catastrophic Ground Collapse. Insurance companies here include it in their homeowner's policies.

Gene, I made the calls, only on new.

figure about $700 all in.

make several call for your insurance

Jimbo, are you saying an addt'l $700 a year for sinkhole insurance? In reference to your "all in," what does that mean? Only new construction is eligible for coverage? (I would think existing insurance holders would be grand-fathered.)
But for someone buying a pre-owned home today, are they simply... $hit out of luck?

Gene

No not addt'l total of $700 w full sinkhole on new builds.

Not available I was told by 3 brokers on re-sales.

So it appears to me that yes SOL on pre-owned.

I just got off the phone with my insurance agent because I was curious about Jimbo2012's comment that sinkhole insurance was not available for preowned homes. I was told, as Jimbo2012 mentions, that sinkhole coverage is now next to impossible to get in the Villages for preowned homes although the Catastrophic coverage continues to be offered. I personally have the sink hole coverage in my current policy but the agent advises me that come renewal (1/1/13) that coverage will not be offered any longer. He advises that there are a handful of companies that are still offering the coverage but sees them also eliminating sink hole in the near future.
Could be that it will be impossible to cover for sinkhole in the future and he concluded that "fraudulent claims" were the catalyst for dropping this coverage by most insurance companies. We'll have to see what happens but at this point in time I guess everything is on a strictly individual basis.

Don't quite understand why "new" homes would still qualify for sinkhole ins. coverage, but not "resales." What is the logic for different treatment? I would think new homes would be more vulnerable...but I'm not an expert <g>.

Gene

If you click on the link on my earlier post it will solve lots of your questions. There is a huge article in the POA bulletin and it has a question and answer session. Not sure about why they will insure new builds. I worked for an insurance company up until about a month ago. Part of my job was fielding questions about sinkhole insurance. There is so much speculation out there about why they insure this and not that. I found the article in the POA bulletin to be right on with every answer.

If it is no longer available, what is an owner to do if they have damage to their home, but can't afford the high out of pocket costs to repair?

I am told by several insurance companies that we deal with that you can get "catastrophic ground collapse" coverage. They don't call it sinkhole coverage anymore because people kept filing claims for step cracking on concrete block, which occurs in normal settling. So
most insurances companies, if not all, say "we don't have sink hole coverage, we have catastrophic ground collapse coverage." We use several great insurance companies who can help you with answers to the rest of your questions. Pleae let me know if you need some contact info for them.

Catastrophic ground collapse insurance is not exactly the same as sinkhole insurance. Your home must be uninhabitable for the catastropic ground collapse insurance to kick in that means you have to lose your certificate of occupancy. If your driveway sinks or your yard or even if you get cracks and sinking in your foundation as long as you can live in it it's not covered without regular sinkhole insurance.

Sinkhole and Catastrophic Ground Cover Collapse Insurance in Florida : Property Insurance Coverage Law Blog

An easy quick article that explains it all

Nancy D is Wrong...its not just semantics there are very specific differences between Catastrophic Ground Cover Collapse and Sink Hole Coverage. All Florida Homeowner policies MUST have Catastrophic Gound Cove Collapse UNLESS you specificaly waive in writing such coverage. Read jineman's posts...they are much more accurate.

From reading Nancy D's (first) post It sounds like she is a broker or insurance agent of some type.......suggest she gain a better understanding of a very a very sensitive subject.