[aljetmet]

Good point. I think I wouldn't shore up the house though, just wait till it gets condemned.

[CarGuys]

Originally Posted by 784caroline

Just remember in checking with insurance companies that "Catastrophic Ground Cover Collapse", which every Florida homeowners policy should have, is different than "Sinkhole loss". In this senario there typically is a visible ground depression and the structure is condemed or ordered to be vacated by the county. Deductible is normally the same as your "all other perils" portion of your policy.

Sinkhole loss is the "gradual" settlement or weakening of the earth supporting your property...common indicators are cracking of the foundation or walls, doors and windows not opening properly. Some insurance companies are writing this coverage BUT it may come with a deductible as high as 10%....so on a $250,000 you would potentially be faced with a $25,000 bill if something devastating would happen.

Well said and correct. Many people have coverage that does not cover both.

It's not a panic nor a deal breaker if you check with a agent first. They need location. Home style and any additions such as pool extended lani etc.

[Advogado]

Originally Posted by Bill & Carolyn

Yes, it's true. Apparently the Insurance companies that still insure homes in Florida have all dropped their sinkhole coverage (no collusion there I'm sure).

The still cover 'catastrophic' sink hole collapse' (those that open up and swallow your home in a short period of time) but not the 'gradual' sink hole.

I know because I own a home in Pennecamp and originally had it insured as a 'vacation property' not my permanent residence (I didn't actually know I was doing that at the time, I just relied on TV to set my insurance up and that's the way the mortgage company did it). It is now a primary residence and I tried to change the policy to add additional protections, but, the Insurance agent told me the company wasn't accepting new business in Florida and technically, this would be new business. She then told me that all insurance companies accepting new business had dropped coverage for the 'gradual sinkhole'.

I just got off the phone with the Villages Insurance Agency. Here is my take on the story I got:

That Agency can get you sinkhole coverage if you buy a new home [convenient for the Developer], but if you buy a preowned home, getting such coverage will be difficult or impossible, depending on where the preowned home is located. [Query on coverage when you renew?] To get coverage on a preowned home, if it is in an insurable area, you may have to pay for an inspection-- prices range.

If, as in my case, you have coverage in an existing policy, the insurance companies have been continuing coverage on renewals. [Query on the future?]

Thus, if you are going to buy a house and are unwilling to assume the risk of sinkhole damage, it seems that you should talk to an agent(s) about coverage on the specific house that you are considering.

[mfisette]

Originally Posted by 784caroline

Just remember in checking with insurance companies that "Catastrophic Ground Cover Collapse", which every Florida homeowners policy should have, is different than "Sinkhole loss". In this senario there typically is a visible ground depression and the structure is condemed or ordered to be vacated by the county. Deductible is normally the same as your "all other perils" portion of your policy.

Sinkhole loss is the "gradual" settlement or weakening of the earth supporting your property...common indicators are cracking of the foundation or walls, doors and windows not opening properly. Some insurance companies are writing this coverage BUT it may come with a deductible as high as 10%....so on a $250,000 you would potentially be faced with a $25,000 bill if something devastating would happen.

Here is the definition of Catastropic Ground Cover Collapse (CGCC) below. You may also want to consider the law of probability specific to a sink hole. For example, your lot is typically 80 ft. x 80 ft. and your home is positioned roughly in the center of your lot. If your were to have a sink hole "ON" your property, what would be the chances that it would be catastropic? So my question is why are you concerned with the definition of sink hole coverage vs. CGCC?

Catastrophic Ground Collapse.
Florida law affirms that catastrophic ground collapse does not occur until all of the following four conditions have been met:
• There is an abrupt collapse of the ground cover;
• There is a depression in the ground cover clearly visible to the naked eye;
• There is structural damage to the building, including the foundation;
• and
• The structure is condemned and ordered to be vacant by the local government agency responsible for issuing condemnation orders. Loss of Certificate of Occupancy (CO).