Opinions on insurance

JShaner314

My DH and I are buying a house in New Port Richey in the neighborhood Waters Edge.  I know a lot of New Port Richey is sinkhole prone so I am trying to decide whether or not to get sinkhole coverage on my homeowner's policy.
The house we are buying is brand new (just completed in February) and will have a 1 year warranty provided by the builder along with a 10 year structural warranty. 

Homeowner's insurance without sinkhole coverage is less than half of what it will be to have the sinkhole coverage.  Now without the coverage, even if the house sank, we are covered under catrastrophic for repairing the hole, but the cosmetic stuff won't be repaired.  Basically sinkhole coverage will fix any cosmetic stuff (cracks in the walls, flooring, cabinets, etc) that become damaged with a sinkhole. 
According to Allstate, he doesn't reccommend the sinkhole coverage because he assumes the 1 year warranty will cover any cosmetic damage done by a sinkhole, but I am thinking that won't be the case. 

My uncle lives in Tanglewood which is not too far from Water's Edge and he has had a sinkhole.  My parents live just slightly further away and they had a pretty awful sinkhole.  So I am kind of nervous. 

What would you do?

 

babybchbum

I'm under the assumption in that area, you are required to have sinkhole coverage.

 I understand saving money on not getting the coverage but it is worth the piece of mind to me to have it.

ChangeOfPace

I would buy the sinkhole coverage and be sure I knew exactly what it covers.  Cosmetic repairs will be the least of your problems if the foundation is destroyed.  Don't just take the agent's word on what is covered, read over the fine print on the policy yourself.  Better safe than sorry.  Unfortunately, my BFF's brother hasn't been so lucky when it comes to insurance coverage for the cracking foundation of his house in Safety Harbor.

alzi

My H works for a homeowners insurance company, I'll ask her opinion on this as well as what is commonly written as coverage by his company. Will get back to you!

JShaner314

alzigator:

My H works for a homeowners insurance company, I'll ask her opinion on this as well as what is commonly written as coverage by his company. Will get back to you!

 

Thanks!!

alzi

Just an update, my H is going to check into this Monday at work....his company assumes policies from other companies, and he is in the finance/accounting dept so he isn't sure off hand. Will get back to you!

quigleygina

I would definitely go for sink hole coverage, especially since I know my house is in that area and it might be a victim of events which my home insurance will certainly not cover.