by toddbailey » Wed Mar 11, 2009 04:02 pm
Hi All,
I was chatting with a neighbor who had a friend who just have a home setup. Their cost for the structure alone was well over 250,000.
I'm concerned that I have a ACV policy, which covers up to 50K $
My house is a bit smaller so If it costs anywhere close to $200,000 to replace a total loss I see a big problem. Foremost offers a replacement cost (RC) policy but at a huge premium. I may have already answered my question, but is it worth the added expence to write a RC policy?
BTW: this in a 1985 1200 sq ft mobile fixed to private land.
Also since we are on the subject, I want to expand the house by perhaps 500 to 750 sq feet. A permit won't be obtained, as it's not needed.
But I am concerned that I might incur issues with the insurance co if I proceed.
Ideas, advice any one?
I was chatting with a neighbor who had a friend who just have a home setup. Their cost for the structure alone was well over 250,000.
I'm concerned that I have a ACV policy, which covers up to 50K $
My house is a bit smaller so If it costs anywhere close to $200,000 to replace a total loss I see a big problem. Foremost offers a replacement cost (RC) policy but at a huge premium. I may have already answered my question, but is it worth the added expence to write a RC policy?
BTW: this in a 1985 1200 sq ft mobile fixed to private land.
Also since we are on the subject, I want to expand the house by perhaps 500 to 750 sq feet. A permit won't be obtained, as it's not needed.
But I am concerned that I might incur issues with the insurance co if I proceed.
Ideas, advice any one?
Posted: Wed Mar 11, 2009 06:39 pm Post Subject:
You really need to sit down with your agent and discuss this. It's a question of having the proper limit on the policy and premium cost vs coverage. There are many factors that need to be considered (your incoming, your location, what type of coverage is can be offered, etc).
Posted: Wed Mar 11, 2009 06:48 pm Post Subject:
I've already had this discussion, responce: "sorry that is the best we can do, if you can find a better policy elsewhere, go for it. The underwriter apparently did a drive by inspection and feel that their 50 k actual cash value limit is appropriate" I suspect that they think it's a "typical" mobile home with the cheap-ness that follows, even though many areas have been upgraded/replaced. I've filed a concern with the insurance comissioner as well, perhaps they can assist in finding a policy that provides fair coverage at a reasonable price.
Posted: Wed Mar 11, 2009 10:43 pm Post Subject:
That is the thing... if your current carrier won't write a RCV policy, then getting one with them is moot. As no one here knows what carriers write in your area or what they offer, your best bet is to contact another agent in your area (if they one you currently use cannot sell from several carriers) and find a carrier that _would_ write an RCV policy. You can then get a quote from them and go from there.
Posted: Thu Mar 12, 2009 12:17 am Post Subject:
That is the double edged sword I am dealing with.
I've spoken with several other companies (geico, allstate, pemco, state farm and a couple of others) and so far only Foremost and Mutual of Enumclaw will write a policy, Mutual only offers a Actual Cash Value, Foremost offers a Replacement Cost, but it's quite expensive.
Even though the title is eliminated, and structure is fixed to property etc.
It appears they are looking in a Kelly blue book like document and quoting a price off some table, even though the structures should be appreciating.
If this were a traditional framed house my rates would be in the 250 to 300/yr range.
MUE is hitting me for almost 500 and Foremost wants over 1500 /yr.
I'm afraid that in order to protect my assets, I may need to switch to foremost and grab my ankles and enjoy the ride. :(
Posted: Thu Mar 12, 2009 05:38 am Post Subject:
Okay, one sad note.....a home once mobile would remain a mobile home in the eyes of the insurers even when its been sitting on ground for several years.
Todd, many homeowners are sailing on the same boat. Its always hard to find suitable coverage for the mobile home & it becomes even more difficult with it fixed on the land.
Posted: Sun Mar 15, 2009 07:32 am Post Subject:
It looks like you have already found out what most on this site could tell you about insurance companies and mobile homes…. They really aren’t a good risk and most companies won’t insure them. They have a high risk for water damage from burst pipes, a decent fire is usually a total loss (or close) and problematic water penetrations from exterior walls and the roof. Don’t get me wrong, I have seen a lot of nice interiors and exteriors of mobile homes, but insurance companies don’t see it that way.
You are also right that there is an NADA book for mobile homes that some insurance companies use to consider the value. I have seen some companies consider it a dwelling once it has been completely removed from it mobile system and installed on a block foundation (some companies don’t care). 50K on a 1985 1200 sq. ft. sounds about right uses NADA.
Your neighbor paid 250K for their home. Was it a triple wide deluxe? Most double new double wides (2,400 sq. ft. or so) that I’ve seen in Ohio go for around 80 to 120 K. Set up and delivery might be a couple more K.
You may want to try Assurant Group out of FL. They are similar to Foremost, but you may find better rates. They offer coverage on structures, contents and liability. Expanding your policy really depends. How much do you own on the house? How much have you recently put into the house? Figuring what you would walk away with after a total loss should come into play against 1500 per month.
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