[Quixote]

Originally Posted by chuckinca

W also have ASI insurance thru Villages AAA. Have had it since early 2005.

Villages AAA rep told me recently that existing "AAA Insurance" policies policy holders coverage didn't change but that ASI and other companies they sell did.
I thanked them for savings us a few dollars for the past 8 years by selling us ASI instead of the costlier AAA insurance.


.

In other words, it does vary from company to company. If ASI (through AAA) has changed its sinkhole coverage deductible from $500 to 10 percent on renewal, while AAA's own insurance has kept the $500 deductible, I feel more confident, well, at least for another year. Who knows what'll happen next year....

Originally Posted by Carla B

Gomoho is correct. All HO policies cover catastrophic ground collapse but sinkhole coverage is an additional rider. Your slab may exhibit major cracking and separation, but not be swallowed in a hole. That's when sinkhole coverage, if you have it, kicks in.

Isn't that what I wrote? Gomoho is saying sinkhole coverage is greater than CATASTROPHIC coverage and that's not true. If a sinkhole swallows your house or part of your house & your house is condemned then that is CATASTROPHIC. Any damage to your property up to your house being condemned is when sinkhole coverage pays. I agree with what you say about the HO insurance policies & rider.

[gomoho]

Uh, Gomoho never said that!!!

[gomoho]

Originally Posted by TexaninVA

Some of this has already been covered, but just to clarify … we’re talking about two insurable events.

The first is “Catastrophic Ground Cover Collapse” as opposed to a “sinkhole”. CGCC is defined as damage that is “abrupt,” “clearly visible” and involves “structural damage.” Often the house will be condemned should it become too dangerous to live in. The good news is any FL homeowner’s policy should automatically include this coverage. CGCC does happen from time to time in TV. About 12-18 months ago, several houses near Cane Garden were impacted by CGCC. The risk seems to be higher near water and/or very flat areas of the golf course, and less so on a more hilly terrain or lot.

You’re talking about the “Supplemental Sinkhole” coverage. You can usually get them for new homes south of 466A but they are only issued by a limited number of companies. However, if you can get SS, it’s going to be 10%. If your house does not pass muster based the risk of sinkholes per the geographic area (actually the address), it will be inspected. If it fails, no policy will be written, and you then become “self insured.”

Think of sinkholes as kind of a slow motion collapse. You wake up one day and your door doesn’t shut, or windows are misaligned, type of thing. If it happens it will be distressing. Often it can be fixed, but it’s going to be expensive.

I'm curious as to why they automatically offer on new construction and is it then grandfathered or are they faced with the same renewal dilemma?