Talk of The Villages Florida - Sinkhole in Charlotte

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Quote:

Originally Posted by JourneyOfLife (Post 981597)

Great question... but IMO, it is opposite of what buyers would (likely) asked themselves!!!

Turn that question around: Why would I consider buying a home with a repaired or unrepaired sinkhole in FL? Especially if there is a supply of other homes on the market!

The short answer for me; I would not be very likely to buy a home with a repaired or unrepaired sinkhole.

This is an interesting article on the topic.

Opinion: Florida, fix sinkhole policy - CNN.com

Who knew ?

I read where the POA has a "committee" looking at the sinkhole insurance issue. It is more complicated than meets the lay person's eye. Apparently you are okay with insurance coverage if your home is deemed uninhabitable but it can cost you dearly if not. Also, the insurance lobby got the Florida legislature to make changes a couple years ago that hurt the consumer and favored the insurance companies. Of course, usually two sides to most issues.

Before we purchased a new home in the Village of Collier we were intrigued by a resale in an older Village that had been a sinkhole home. The sell price was approx $50,000.00 less than a comparable home. We did get a company willing to insure but at 3 times the going rate per year. We figured over 20 years the added costs we would have paid the Insurance Company would have negated the $50,000.00 we thought we saved. So why would we buy to break even coupled with the attached stigma?

I got sinkhole insurance on my resale with no problems and compared to Oklahoma insurance per year for total coverage it was cheaper, so it was great deal for me.

Quote:

Originally Posted by Rc Moser (Post 981853)

I got sinkhole insurance on my resale with no problems and compared to Oklahoma insurance per year for total coverage it was cheaper, so it was great deal for me.

Pays to shop around. We were given an insurance agent through the Villages so we figured that was the going rate for the added risk. Glad it worked out for you.

I think when someone says they have "sinkhole insurance" they need to specific if it is catastrophic that is available to everyone or full coverage. There is a huge difference.

Here are some interesting articles with related info. I bolded some interesting items in the context of the entire quote.

Quote:

TB Times:

The result: Homes from Brandon to Port Richey to Weeki Wachee sit unrepaired, decimating property values and draining millions of dollars in tax revenue from local governments already hard hit by the recession.

Since 2005, the Florida Legislature has repeatedly tried to find ways to ensure that legitimate sinkhole damage is covered and repaired while cutting down on the number of questionable claims. The latest attempt came in May with major changes to state law that require homeowners to repair damage and that make it less attractive to sue their insurance companies.

Sinkholes become Florida's latest insurance disaster | Tampa Bay Times

Now... why would the state repeal the electronic database of sinkhole activity?

Quote:

WLRN:

The Florida Legislature responded to the issue in 2011 with the passage of SB 408, property insurance reform that tightens up the timeframe for insured homeowners to make a sinkhole claim, outlines investigation protocol, and limits the structures that may be covered under a sinkhole claim. It also "allows an insurer to require a property inspection prior to issuing sinkhole loss coverage" while repealing the electronic database of sinkhole activity. (Homeowners can read SB 408 here.)

What Florida Homeowners Should Know About Sinkholes | WLRN

This next article is long, but it seems to give the insurance company POV too.

Quote:

TB Times:
The owner of the home, T****** L****, said her claim languished for a couple of years because Citizens' initial offer included only $2,000 for cosmetic repairs.

Citizens eventually agreed to pay $14,000 toward cosmetic damage and repair work recently began. But it was too late for Lyons.

While waiting, she and her husband fell behind in mortgage payments, and they recently divorced. They're now arranging a short sale that may come through before the sinkhole repair is finished.

"We should have had the money way back when, but they refused to write a check," she said. "We're now told because of the short sale, we'll never see the money."

Bought in 2005 for $248,900, the home is now appraised at only $38,000. "What I'm told by the public adjuster is once you fix the house, you could double the $38,000 and that's what you could sell it for," L***** said. "We're going to lose no matter what."

Quote:

TB Times:
Citizens has shifted to a 10 percent deductible on sinkhole coverage, far higher than the 2 to 5 percent deductible for other perils like hurricanes. That looks attractive to the financially strapped homeowner facing a multithousand-dollar sinkhole premium.

But when it comes time to pay up, it can be a shocker.

Underpinning a home with sinkhole damage may cost $10,000 to $20,000. Compaction grouting, a more durable and costly method, could cost up to $100,000. Translation: With a 10 percent deductible, a homeowner would have to pay $30,000 out of pocket to fix a house valued at $300,000 before any insurance kicks in.

St. Petersburg sinkhole plaintiff attorney Hans Haahr said the combination of a high premium, high deductible and little likelihood of a successful claim means "there really is not sinkhole coverage now."

Florida's 'sinkhole alley' homeowners struggle with insurance overhaul (w/video) | Tampa Bay Times

After reading JourneyofLife's above post.
IMO 20% down and a mortgage is the only way to go in purchasing Florida real estate

Quote:

Originally Posted by graciegirl (Post 981040)

Yes.

OMG do you want some swamp land L.O.L.

Quote:

Originally Posted by Chellybean (Post 982062)

OMG do you want some swamp land L.O.L.

Yes. I said Yes. You are newer here than me.

I have lived here now for eight years. There has been a sinkhole about once a year. The last one hit national news, probably because of our new online news and as a result spread all over the world, slowing the sale of homes in The Villages. Last year was a very big one for sure...but...

The home is still standing and probably more safe now than it was before.

And no one had a home with catastrophic loss, they all were reparable. Better the devil you know than the devil you don't know.

AND...that nicely poured slab held. It didn't crack or break. Yes. I said yes.

Quote:

Originally Posted by maybe (Post 981540)

I think everyone's insurance now covers sink hole damage that makes the house uninhabitable. It is getting coverage for lesser damage that I have heard is now hard.

Yep. Catostophic sinkhole damage is available where your house falls in a sinkhole but what happened is people were claiming settling with cracks as sinkhole damage. You can still get settling sinkhole damage coverage but you'll have to at your expense pay for testing which has a 98% fail rate so basically no coverage available.