Insurance Question on Manufactured Home

[Ethanflux]

If my loan is for $90,000 and this also includes 5 acres. How much insurance should I get to satisfy my mortgage company? Do I have to do the full $90,000

[David Oxhandler]

Many times the lender wants insurance for the entire amount of the loan. BUT... The land under your house isn't at risk from theft, windstorm, fire and the other perils covered in your homeowners policy. So don't include its value in deciding how much homeowners insurance to buy. If you do, you will pay a higher premium than you should.

Manufactured homeowners insurance provides coverage in the event of damage to your property, as well as liability for injuries and damage you cause to other people. A Manufactured Housing Insurance Specialists is best equipped offer you a customized benefits and premium comparison, quote you the best possible rate and coverage, and help you make the right choices about this important form of protection for you and your family.

Talk to your lender or mortgage broker to come to an understanding of what they expect and don't be afraid to negotiate. Tell them you are willing to pay for a replacement policy. That should give them the security the will be looking for.

CASH VALUE vs REPLACEMENT INSURANCE

Replacement insurance on you home (and personal possessions) replaces the old with new without loss due to depreciation. Without replacement insurance, any claim will be settled for Actual Cash Value which is the present value and will reflect depreciation. So the longer you pay for the policy the less it will pay you back in the event of a loss. The small extra premium for replacement insurance is money well spent.

If you would like to learn more we have a wide range of articles about insuring your MH in our archive.