All the laws regarding Sinkhole insurance (Not catastrophic ground collapse insurance) changed in Florida on 1/1/2012 following insurance "reform" enacted by the Florida state government. If you were a NEW policy holder in Florida as of 1/1/2012 your chances of getting sinkhole coverage in ANY home (new or resale) is almost nil. Our rep at Villages Insurance told us that she had only ONE Florida insurer who would write sinkhole insurance for NEW HOMES ONLY in The Villages. None of their other companies would write for it. If you purchase a resale home you can apply for sinkhole insurance, and they will send out a company to do an inspection. You pay 50% of the cost of the inspection, the insurance company pays the other half. Chances are no matter how good your inspection looks, your insurance company will decline to issue you a policy for sinkhole coverage. If all the planets & stars align and you do get a sinkhole policy it will come with a deductible as high as 30%. 30% of what?? Of the SALE PRICE OF YOUR HOME. So if you bought a house that cost 300K you will be on the hook for the first $30,000 of damage.

Sinkhole and Catastrophic Ground Collapse are NOT the same things although most people use the terms interchangeably. Catastrophic Ground Collapse insurance is REQUIRED on ALL policies issued in Florida. Sinkhole, which covers the less noticeable, happening-over-time damages is no longer required in Florida policies and as stated above is now almost impossible to obtain anywhere in FL.

The damages incurred by the homes in the current discussion fall under Catastrophic Ground Collapse, not sinkhole coverage.

Our Villages Insurance rep also told us that even those who currently have sinkhole coverage will lose it in the next couple of years no matter what your situation. This kind of coverage has basically passed into history.

I certainly agree. We bought, paid for, gutted, renovated and professionally decorated a CYV. Our primary residence is elsewhere. If this place were swallowed up by a sinkhole, we'd be upset but it wouldn't break the bank. We're big believers in not living beyond your means. I seriously doubt a lot of these retirees are living within their means or actually own their homes. If disaster strikes, many will be hard pressed to recover.

Where does this come from???

We know a number of people that have what we consider lavish homes that are mortgaged, who haven't been able to retire completely, but are still working part time. I guess everyone's different. For some people a "show" home is important, even if they have to keep working to pay for it. If I was faced with that choice, I'd go with a little less home if it meant I could retire.

Well...when I walk with a small group or listen to people in a social setting here and they are talking about financing a golf cart or car or their home mortgage, it indicates (to me) they are living beyond their means. That's my own opinion of course - and it's probably correct!

If you think most people in the villages pay cash for houses, cars, golf cart, you are gaga land. Just my observation:BigApplause:

the sales people told us most of the homes in the villages are sold all cash......no appraisals needed.

he also added that a large majority of buyers buy a second, a patio home, just for investment purposes, since he said that there growth is better that 10% a year and people feel that is better than the banks and the market.....

:popcorn::popcorn::popcorn:

Interesting….our sales agent who has been selling here for over 10 yrs. told us the majority take out a loan.

Ditto. When we were there we were told that 60% carried a mortgage.

Who really cares how someone else paid or is paying for their home??? unless they're knocking on your door for a donation!

This thread has really gotten off topic. But I will add my opinion. Even tho we could pay cash we don't as I believe it's better to use someone elses $$ (loan) and continue my investments. Cash or loans don't always truly reflect a persons financial status. Besides, who cares!

I understand where you are coming from
 

I totally understand where you are coming from. We've owned many homes and have not had a mortgage since we were in our early to mid 40's, when our two kids were in college. At our age now, of 69, we would not want the burden of a mortgage or loans for furniture, etc., cars, golf carts, etc.

We only buy what we can afford. Like you, we have done extensive remodeling over the years, always paying from our savings. It's a blessing not to have debt in your senior years. Once our home sells here, for good or bad (as far as profit goes) we will only spend what we have, with no need for a mortgage.

I once read on TOTV of how a villager in her nineties got a mortgage. That was surprising to say the least. Our town bankers have always been so conservative that I'd bet anything that they would not give such an elderly person a mortgage.

Perhaps it is just Yankee Frugality or New England Frugality.
Who knows? But I do "get" your message.

I also live within my means and our home has been paid for for years. But regardless, if what I am being told is true, that sinkhole coverage (not catastrophic ground collapse) will become non-existent in the very near future, the cost associated with problems from sinkhole damages could potentially be in upward of $100,000 or more. That is what the insurance agent told me.

For those of you who bought your home and could get coverage, I understand that you are not concerned. And now that you have your home, what can you do?, I understand that also. But as a potential buyer, would you have felt the same if there was NO coverage available to you?

Who cares

Now this gets me all riled up. My husband is still working. He is in his early seventies. Our home is paid for. He is good at what he does and enjoys it. He is able to work from our home and the hours that he wishes. As a result we were able to pay for our two grandchildren's college education and allow them to be launched without a debt, (They both maintained grades to keep them on the deans list) and be sure our daughter who has Williams Syndrome won't have to live off of anyone. We have always been careful and frugal. It is a choice and a mindset. Don't say anymore Gracie. Deep breaths.


Now I feel better, although it is off topic.

The thread has strayed far from the original topic of the sinkhole and is now closed.

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