The Manufactured Housing Forums

Why is it so hard to acquire a good policy? I contacted KY Farm Bureau and State Farm. There policies for $65,000home $60,000 contents was under $1500. BUT then I find if I have a total loss or even a partial loss, they only cover depreciated value. So say my home is worth $60,000 today but in three years it is at $45,000, they only cover the $45,000. BUT again I was paying for $60,000 of coverage. What gives? I have found Actual Cash Value policies, but the prices were DOUBLE. We have a stick built home now insured at $100,000, and only pay about $1100 a year. What is up with the unfairness of the insurance prices? If I am paying for $60,000 of coverage that is what they should provide. Right? Anyone know of a GOOD reputable company that I can go thru. All help would be great.

Don´t confuse what you paid for your house with replacement costs. 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.

The type of insurance you are asking about is called cash value replacement. Perhaps you would be more comfortable with replacement insurance.

CASH VALUE vs FULL REPLACEMENT INSURANCE

Full 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.