I see there are a lot of sinkhole homes available, both repaired and unrepaired. Can you get insurance on these homes?

Asked by Shiela Z., New Port Richey, FL Tue Mar 19, 2013

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Annette Lawrence’s answer
Annette Law…, Agent, Palm Harbor, FL
Tue Mar 19, 2013
The question you present is incredibly important and deserves a thorough answer.
Of course, a through response can not be provided in a Q&A on the internet.
You really need to chat with a real estate professional who works in Pasco County.
As a home buyer you need to ask your agent:
1. If a home has been remediated, what are the issues I may face today and in the future?
2. How much time must pass before 'sink hole' is no longer and issue and does not REQUIRE disclosure.
3. If the home for sale has sink hole damage and the insurance money was not spent by the current owner on remediation, what are the ramifications?
4. How can I determine if the home I am wanting to buy is currently under the influence of a sink hole?
5. Are there any circumstances where a home I purchase, in good condition, can become mot insurable? You will find 'sink hole' is not the only issue.

From the basis of the above information you can properly place your observations into the proper context..

Best of success to you,
Annette Lawrence, Broker/Associate
Remax Realtec Group, Palm Harbor, FL

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0 votes
Bobbybear, Home Buyer, Tampa, FL
Sat Oct 12, 2013
Several factors to consider.
1) How the repair was done, the best way with a warranty is pinning, adding grout to the ground can't be trusted long term!
2) Repaired sink hole homes can be insured, thus you can get a mortgage if they were pinned!
3) Un-repaired sinkhole homes are cash only, and you cannot get insurance!
4) Repaired sink hole homes sell for more because they can be mortgaged, but they still do not sell equally to a home without a sink hole!
5) Another thought is the area, if the area has sink holes, and the home you're looking at doesn't have one, it doesn't mean it won't get one after you purchase it!
1 vote
Stephen McRo…, Mortgage Broker Or Lender, Tampa, FL
Tue Mar 19, 2013
If you don't take my advise, mark my words, you will regret it!


Ever wonder why realtors don't actually buy Sinkhole property? Same as Mortgage Brokers, because they know the real deal too.

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1 vote
Nicoleturcot…, Home Buyer, Boca Raton, FL
Thu Dec 8, 2016
Yes, you can. I am an insurance agent specializing in these particular types of homes. In Florida, you have two options, you can go through Citizens Insurance, which is the state of Florida. They will ask you for documents galore and take a long time going back and forth before providing coverage. Or you can go through surplus lines markets, such as Lexington Insurance. It is an A rated carrier and will provide coverage as easily as it is to fill out a one page application which your agent can fill out for you. They will exclude sinkhole coverage but so will everyone else. Truthfully I don't know why anyone would go through the pains of trying to get a policy with the state. But a lot of agents either don't know there's another option or are just so used to going through Citizens.
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0 votes
tishabud1, , Leicester, NC
Sun Jan 24, 2016
I got insurance on my unrepaired sinkhole home from Lloyd's of London.
0 votes
Margaret Has…, Agent, Tampa, FL
Sat Oct 12, 2013
Unrepaired sinkhole homes are not insurable. Repaired sinkhole homes are not a good buy - there will always be a stigma on them. Instead of buying a sinkhole home, why not buy a better value home for the same price. Contact me to find out how...

Margaret Hassani
Broker, Lightning Realty
Innovation and Experience
(813) 766-1501
Fax (813) 443-0118
0 votes
Hello... We are looking to move to the Tampa area this summer. How do you know a home is a "sinkhole home"?
Flag Tue Jan 26, 2016
Marie Barakat, Agent, Carrollwood, MD
Tue Mar 19, 2013
This does depend on insurance companies. An unrepaired sinkhole cannot be insured, but a repaired sinkhole can be insured at a higher premium.

0 votes
Good morning Shelia,
Are you familiar with any mortgage lender that will finance an unrepaired sinkhole property if I purchased to remediate?

Thank you
Flag Mon Mar 10, 2014
Sorry for spelling your name incorrectly.
Flag Tue Mar 19, 2013
Tracy Hoyt, Agent, Valrico, FL
Tue Mar 19, 2013

Sometimes you can and sometimes not. Of course it is usually a bit higher but once the sinkhole has been repaired properly then the insurance can go down. Are you looking to buy in Tampa or the New Port Richey area? I would be happy to send you a few homes to consider and can help answer the other questions you may have about purchasing a new home.

Please review my profile on Trulia and send me a message or email me directly at Thoyt@prutropical.com

No pressure, just help.

Tracy Hoyt
Prudential Tropical Realty
0 votes
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