Security First Insurance - no more sinkhole coverage
 

Just an FYI for everyone: I got a phone call a bit ago from the insurance agency we've dealt with in regards to our upcoming homeowners policy renewal with Security First. It was a courtesy call to let us know that when our policy renews in mid-December, it will renew without the sinkhole coverage we've had for the last 3 years. The young lady said Security First will no longer be providing sinkhole coverage on any homeowners policies.

So I've got a call in to our agent to see if they can find us another company that will be able to provide us sinkhole coverage with their homeowners policy.

Bummer. Such is life sometimes! :sigh:

Bill :)

Let us know how it turns out. I don't think you will find any insurance companies writing new policies for sinkholes

WE have USAA and we just received our renewal homeowners policy. Our policy is with and renewed by USAA before they stopped writing Florida Policies...it is not an ASI policy..who has an contractual agreement with USAA.

Our renewal homeowners policy just went up 20% in premium and although we still have Sinkhole coverage (10% deductible) in addition to Catastrophic Ground Cover Collapse there are now 2 pages of added restrictions regarding a sinkhole/ground cover collapse loss claim. Such restrictions now specifically limit any claim to the principal residence (ie not the yard behind the residence, time limits of when to report damage, who pays for what to include testing for sinkholes, and finally a small kicker in the new policy that states "you may not accept any rebate from anyone dooing repairs specified in the endorsement."

Well that is interesting as I did our renewal last week for Security First and it did include sink hole coverage.

wonder if it will be there next year...last year allstate stopped sinkhole coverage

I wonder what will happen when a mortgage holder gets stuck with a house that has a sinkhole problem and the owners walk away. Will mortgage brokers stop lending in areas that are sinkhole sensitive?
Most basic policies cover catrostrophic ground collapse but before they pay the house has to be deemed uninhabitable. Our policy currently has sinkhole coverage but with a $25,000.00 deductible.
If the mortgage companies start demanding coverage will the insurance companies provide it or will we have a impasse?

You can still request sinkhole endorsement to your Allstate policy on renewal. Call your agent.

This is a business opportunity and I am sure that it will be recognized by some insurer. It does not make sense to drop all coverage when money can be made by charging special rider premiums and adopting separate higher deductibles.

If this makes too much sense, it is probably due to some state regulation that has boatloads of unintended consequences.

I have Security First also. I was notified that the sinkhole insurance would be dropped IF I did not have a sinkhole inspection. That cost $140 and Security First would pay $70 of the $140. If no sinkhole activity was found (no cracks, etc) I could get the sinkhole coverage with a 10% deductible. I contacted several other insurance companies and was told even if I had the sinkhole inspector give a clean report, I probably would not get coverage. My Security First is underwritten with GEICO.

They all went to great extent to explain what the difference between sinkhole coverage and catastrophic ground collapse coverage means.

Just purchased a policy for my new home. Happen to know a bit about insurance as I am an agent myself licensed in NY for about 30 years. Knew it was important to have the sinkhole coverage. Found it through AAA with ASI insurance. Was very satisfied with the product and the service from the agent.

Geico is an agent for Security First. Security First is an independent company that contracts through agencies in Florida.

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Interesting facts
 

It was announced yesterday that Citizens has requested premium increases. From 2008-2012 Citizens collected in sinkhole premiums 190 million dollars and paid out 1.2 billion dollars in claims.

Citizens? Is that an insurance company? Not the bank?

I don't do insurance in this family. I am in charge of world events.

We currently have ASI and do have sink hole coverage,however, we were advised that if we sold our home the new owner would no longer be able to purchase sink hole coverage. We were futher advised that the only sink hole coverage available in the future would be for new builds only. She did say that it might be possible to find an insurer that would write a sink hole policy but that the buyer should pay very close attention to what the policy provides and that it would be expensive.

I believe this to be true. It is what I have found in my inquiries.