[kathy and al]

Originally Posted by KEVIN & JOSIE

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?

As the old saying goes: "Your SOL" and believe me-the insurance companies will be very happy not to have to process your claim.

[janmcn]

Originally Posted by KEVIN & JOSIE

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?

Since I don't have the $250,000 to repair a hole in my yard, I would just have to change my identity and walk away.

[Chipper]

Does the fact that Sinkhole Ins. will not be available cause prospective buyers to reconsider buying in TV? I know that damage from a sinkhole is slim as is being hit by a tornado, but I still have coverage for tornado damage.

[another Linda]

Our insurance company is St. Johns and we just dealt with this yesterday on our villa north of 466. The sink hole coverage we had last year was automatically cancelled for every policy but we could reinstate it if 1) there were no sink holes within some radius (not sure what that was), and 2) our foundation showed no cracks. The company did the survey for 1) at no charge to us. If we passed that, then we would pay for the inspection for 2). Unfortunately the survey showed there were sinkholes in the radius. I'm currently trying to find out how close.

[784caroline]

Chipper.....the problem with obtaining sinkhole insurance is not just a Problem in The Villages BUT all of Florida

[784caroline]

Another Linda....even if you go through those hoops to get sinkhole insurance, I would bet your minimum deductible would be 10% of property insured value ...so for a $200,000 insured property that $20,000 out of pocket before the insurance company evens starts to pay.

Decide you are wiling to take that risk before you make additional outlays to get the inspection reports. If you can get it, its still probably worth the cost.

[Chipper]

I understand that the sinkhole problem concerns all of Florida. I have family in the Tampa area that will lose their coverage next year. I'm wondering if the lack of coverage is a factor in buying property in TV (or Florida).

[Carla B]

Originally Posted by glgene

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

Maybe the developer has some influence over the number and age of the homes that will be covered. I wouldn't get too comfortable thinking my new home would continue to be insured beyond the first year or two. When you move in, it is no longer "new", it is preowned.

[aljetmet]

I'm concerned as well. I live in a burb of Memphis. When we bought our house we were told by the bank that we needed to earthquake coverage. We have it with 10% deductible. it's not cheap either

Turns out the last quake just north of us was a 100 years ago and created Reelfoot Lake. (The Mississippi went backwards for three days) Supposedly these quakes come every 100 years or so.

Our house can't be sold soon enough!

Funny thing I expect our home insurance in TV (with any sinkhole coverage we can get) will be half what we pay in Memphis and our new designer will be much higher in cost than we are selling our current house

[KEVIN & JOSIE]

Originally Posted by Chipper

I understand that the sinkhole problem concerns all of Florida. I have family in the Tampa area that will lose their coverage next year. I'm wondering if the lack of coverage is a factor in buying property in TV (or Florida).

Unfortunately it has stopped us at this time. The purpose of having insurance is to protect you from the rare unexpected. Just can't afford to take such a risk with such a large investment at this point of my life. Maybe the future will get brighter.

[terrieb]

Originally Posted by Chipper

I understand that the sinkhole problem concerns all of Florida. I have family in the Tampa area that will lose their coverage next year. I'm wondering if the lack of coverage is a factor in buying property in TV (or Florida).

We were considering buying in Florida but have decided not to because of the issues with sink holes as well as the deductible offered by some insurance companies into the thousands of dollars before insurance would kick in. It is enough of an issue for us to not even consider moving to Florida but visiting and renting instead.

[jimbo2012]

I feel the odds R in your favor, maybe a better chance of lighting to hit U.

You can as of now get the full coverage on NEW, it may not last forever.

But if you had to go out of pocket you can get a second mortgage perhaps as an option.

I would imagine it would be a tax deductible loss.

Moreover if it's not covered loss it means you can live in the home.

[villages07]

There are risks everywhere... Earthquakes in California, floods in river zones, wildfires out West, hurricanes in FL, LA, and TX, and yes sinkholes in FL.

As Jimbo pointed out, your basic homeowners covers catastrophic ground collapse, so, if your home is uninhabitable, you are covered.

If a sinkhole occurs on your land but is not significant enough to make the house unlivable, then sinkhole insurance covers you. Without it, you have to make any necessary repairs on your own.

It's all calculated risks and what keeps you from sleeping at night.

[KEVIN & JOSIE]

Originally Posted by terrieb

We were considering buying in Florida but have decided not to because of the issues with sink holes as well as the deductible offered by some insurance companies into the thousands of dollars before insurance would kick in. It is enough of an issue for us to not even consider moving to Florida but visiting and renting instead.

I think the renting is wise. That way, you can walk away and go back to your home.

[Ron1Z]

We also have put our plans on hold due to no coverage. We were down in July after the heavy rains and all everyone was talking about was how they were going to protect there investments??