Homeowners living near sinkhole concerned about home value

Land 'O Lakes sinkhole could devalue nearby properties

Ralph Terry calls it a close call.

“Before I bought this house, I almost bought that house right on the other side of that big house,” says Terry.

Luckily, he did his homework.

His potential neighbor had a history with sinkholes.

“I got away from that. I figured heck I want nothing to do with that and now look it's in the hole,” he says.

He's owned his property for over a year and with a sinkhole this size, water quality isn't the only thing he's concerned about.

“I wouldn't be surprised if the value of this property dropped $50,000 since Friday. I haven't heard anything but I bet you they dropped a lot already,” he says.

According to a study by the Florida State University Center for Insurance Research, a sinkhole could cause a 40% reduction in value to your home.

Sinkhole expert Taylor Yarkosky says sinkholes nearby makes it tough to sell your home and get insurance, so he recommends to stay away.

“If you find them and you think it's severe and there are issues like this in the area, it may not be the area you want to buy a home. Unfortunately, today, it's almost impossible to get insurance coverage. 

That's because in 2011, Florida Governor Rick Scott signed into law legislation that gave insurers more power to deny sinkhole coverage. It also made sinkhole insurance separate from a basic homeowner's policy.

Terence Doohen's home was feet away from the sinkhole. The value of his home doesn’t concern him as much. He feels lucky to still have his home standing and be alive.

“I just think it's one of those unlucky events. People deal with it every day all around the world and it just so happened to be us this weekend,” says Doohen. “For us we're just very fortunate.”

Doohen says this is the gamble you take with living in a state like Florida.





 

 

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