[bimmertl]

Originally Posted by Posh 08

I don't understand why they are allowing these rate hikes to the insurance companies for paying out false claims. Did the insurance companies do proper adjusting or investigations?

Normally, the person alleging damages has to prove the loss is actually covered under the policy. So if somebody alleges their home is damaged by a sinkhole, they have to prove that's the cause, not just normal settling of the foundation causing superficial cracks.

Florida courts have shifted the "burden of proof" to the insurance companies. So if you allege the cracks in your house are from a sink hole, the insurance company has to prove they aren't.

In order to do this, the insurance company needs to hire an engineering firm to analyze the damage. Cost for this is 5-7K and in some instances the results are inconclusive.

As a result, many "sinkhole" claims are resolved by payments to the homeowner for the nominal damage, which typically doesn't get repaired as it's superficial cracking, most likely normal settling of the foundation etc.

Home Insurance Company Bears Burden of Proof for Presence of Sinkhole |Sinkhole Damage Blog

I lived in Pasco for a while before coming to TV. Pasco is well known as the "sinkhole claim" capitol of Florida, not the sinkhole capitol. Plenty of sinkhole lawyers who make a living soliciting claims and turning nominal cracks into profitable sink hole losses.

County, state seeks solution to sinkhole scam | Hernando Today

[Posh 08]

Thanks for that explanation. Now I understand all those lawyer billboards being along the roads.

[graciegirl]

Those who I sense the panic from are those who don't live here. This is a RARE occurance.

Just as Angie Fox so aptly stated, and please go and read her post in the thread started by a fella named orge, every state has some issue.

If you want to be completely sure that you will never, ever encounter a sinkhole, scratch Florida and Georgia and Pennsylvania off your lists of potential places to live. Earth quakes? Lightning?

The grim reaper awaits all of us. Forget about jumping out of airplanes and live this life right now. I am really happy with where I live.

I HAVE SPOKEN....and Irish Rover, you are right, I DO sound like a know it all.

[graciegirl]

Originally Posted by bimmertl

Normally, the person alleging damages has to prove the loss is actually covered under the policy. So if somebody alleges their home is damaged by a sinkhole, they have to prove that's the cause, not just normal settling of the foundation causing superficial cracks.

Florida courts have shifted the "burden of proof" to the insurance companies. So if you allege the cracks in your house are from a sink hole, the insurance company has to prove they aren't.

In order to do this, the insurance company needs to hire an engineering firm to analyze the damage. Cost for this is 5-7K and in some instances the results are inconclusive.

As a result, many "sinkhole" claims are resolved by payments to the homeowner for the nominal damage, which typically doesn't get repaired as it's superficial cracking, most likely normal settling of the foundation etc.

Home Insurance Company Bears Burden of Proof for Presence of Sinkhole |Sinkhole Damage Blog

I lived in Pasco for a while before coming to TV. Pasco is well known as the "sinkhole claim" capitol of Florida, not the sinkhole capitol. Plenty of sinkhole lawyers who make a living soliciting claims and turning nominal cracks into profitable sink hole losses.

County, state seeks solution to sinkhole scam | Hernando Today

Bump to this great explanation.

[Posh 08]

Gracie, it's not the sink hole I'm thinking about, it's the high sink hole insurance potential. It's worth watching for awhile before making the leap. For me anyway. Right now I'm not paying any bloated insurance rates in virginia.

[JimJoe]

Originally Posted by Posh 08

Gracie, it's not the sink hole I'm thinking about, it's the high sink hole insurance potential. It's worth watching for awhile before making the leap. For me anyway. Right now I'm not paying any bloated insurance rates in virginia.

I agree the insurance is something to think about. I do not buy that is the greedy insurance cos and lawyers that cause this problem.
If selling sinkhole insurance was so profitable, the smart rich guys would be selling it. Why are private insurers running from this business if it is so lucrative? The numbers used to justify the premium increases were 200 million in premiums, 400 million in claims, and HUGE exposure. The numbers do not lie. When claims out run the premiums, premiums go up or the insurance companies run away, or Both.
When you have a claim and your insurance co quotes language in your policy to deny the claim, you do not call ghost busters. You call a lawyer. That is why the lawmakers did not solve this problem with prison sentences for homeowners who make claims and lawyers who fight for them when insurance companies refuse to pay.
If you have a major crack in your home, what caused it and who pays is the question. Do you really expect homeowners who have paid insurance premiums NOT to call and make a claim? Are they really criminals when they do? I do not think so. The false claims should not be paid and I doubt that they are... The issue is not caused by the evil homeowners, insurance cos, and lawyers, but the solution is not to make it impossible to prove your claim either. It is complicated and should be dealt with in the marketplace, and if necessary, in the courts.
If you do not deal with this, the real estate market will be hurt and that is a shame.
JJ

[KEVIN & JOSIE]

Originally Posted by graciegirl

Those who I sense the panic from are those who don't live here. This is a RARE occurance.

Just as Angie Fox so aptly stated, and please go and read her post in the thread started by a fella named orge, every state has some issue.

If you want to be completely sure that you will never, ever encounter a sinkhole, scratch Florida and Georgia and Pennsylvania off your lists of potential places to live. Earth quakes? Lightning?

The grim reaper awaits all of us. Forget about jumping out of airplanes and live this life right now. I am really happy with where I live.

I HAVE SPOKEN....and Irish Rover, you are right, I DO sound like a know it all.

Sinkholes are not a statewide problem in PA. The were manmade, created by mining. So, you are smart not to build above an old mine, again, in mining areas only. The problem in Florida is a statewide natural occuring problem, that can strike without warning. Unfortunately, insurance companies don't want to take on such an expensive risk. They too are in business to make money. Hurricanes + Tornados + Sinkholes = Expensive losses.

[mac9]

Can someone tell me what other industry besides insurance is GUARANTEED a profit by allowing it to raise its rates? Maybe we do need to get together and form a cooperative so that we can jump on the bandwagon!

[Taltarzac725]

Originally Posted by Pturner

Wish I could have written the headline for the article. It would say:

Sinkhole Coverage Through the Roof

Love that line, Pturner!

[KEVIN & JOSIE]

Originally Posted by Posh 08

Gracie, it's not the sink hole I'm thinking about, it's the high sink hole insurance potential. It's worth watching for awhile before making the leap. For me anyway. Right now I'm not paying any bloated insurance rates in virginia.

The issue that is disturbing to me, is that a poster stated he settled on his home in the Villages, found a local company to write his required policy for $700. The second year it escalated to $1200, and the third and this year it went to $1900. Seems like a scam to get you to settle by writing an artificially low premium, and then it never stops increasing. Then you are stuck, because the mortgage company requires the coverage.

[Posh 08]

Originally Posted by KEVIN & JOSIE

The issue that is disturbing to me, is that a poster stated he settled on his home in the Villages, found a local company to write his required policy for $700. The second year it escalated to $1200, and the third and this year it went to $1900. Seems like a scam to get you to settle by writing an artificially low premium, and then it never stops increasing. Then you are stuck, because the mortgage company requires the coverage.

Yep that can be a nasty surprise to the ol budget.

[rubicon]

Originally Posted by bimmertl

Normally, the person alleging damages has to prove the loss is actually covered under the policy. So if somebody alleges their home is damaged by a sinkhole, they have to prove that's the cause, not just normal settling of the foundation causing superficial cracks.

Florida courts have shifted the "burden of proof" to the insurance companies. So if you allege the cracks in your house are from a sink hole, the insurance company has to prove they aren't.

In order to do this, the insurance company needs to hire an engineering firm to analyze the damage. Cost for this is 5-7K and in some instances the results are inconclusive.

As a result, many "sinkhole" claims are resolved by payments to the homeowner for the nominal damage, which typically doesn't get repaired as it's superficial cracking, most likely normal settling of the foundation etc.

Home Insurance Company Bears Burden of Proof for Presence of Sinkhole |Sinkhole Damage Blog

I lived in Pasco for a while before coming to TV. Pasco is well known as the "sinkhole claim" capitol of Florida, not the sinkhole capitol. Plenty of sinkhole lawyers who make a living soliciting claims and turning nominal cracks into profitable sink hole losses.

County, state seeks solution to sinkhole scam | Hernando Today

I am an insurane guy and you are spot on. Beside which, states generally side with policyholders and unknowningly assist dishonest policyholders in frauding insurance companies. It was one of the reasons I had established my credentials with the state insurance departments over the years so that they knew my ethics and competency and would at least give me a fair hearing when a policyholder complained. This is essential in all types of claims, property no fault, workers compensation, liability homeowner, etc.

Despite what the lawyer on television says insurance people want to settle claims fairly and leav as friends because its just good business meaning you must abide by the promises you made.

Finally one of the reasons insurance rates are so high is because of the
fraudulent or exaggerated claims submitted. Insurance companies do a much better job in fighting fraud then you realize...The just don't advertise. So if you know some one who is bragging that he stiffed an insurance company know that as a policyholder he also stiffed you. Frauding an insurance company is not a victimless crime

P.S. I have a relative who lives on a golf course in Pasco county and she had just experienced a sinkhole loss. Her insurance company is working diligently to correct the problem

[CarGuys]

This Sink Hole Stuff is nothing more than a HUGE DEPRESSION