mortgage ins and hazard ins

[Latonya]

I need to know the difference between mortgage insurance and hazard insurance. Also, I am in the Texas area and I am looking for an insurance company that will cover full replacement value of my home. Any suggestions, please let me know.

[rmurray]

Mortgage insurance has nothing to do with you..It is required by lenders (and written by companies of their choice..) if you do not have 20% equity in your conventional loan...It pays the lender for losses of your loan up to 20% of the value of the home...

As far as homeowners is concerned...you are right you SHOULD have full replacement cost coverage...be careful some insurance companies have 2 kinds of replacement cost coverage...1 for the home and 1 for the contents..for the fullest coverage you will want both..but most important is the home..

[Latonya]

can you recommend any reputable insurance companies that would coverage my manufactured home? Also, what are your thoughts about the 5 year home protection policies that the companies sell. Do you think it is worth the $1000, or is there a better route I can take?

[rmurray]

There are many different companies offering homeowners insurance for manufactured homes...It is hard to know who might have the best rates in your area..since rates vary by zip code and a companies experience in the area...Take your phone book and get quotes for all listed....go to the insurance section here on this web site and ask for quotes...these folks are specialists in manufactured home insurance..

The 5 yr "protection" plan is another story...There are many different insurance company extended warranty programs available...but...they all have different coverage...harder still is most companies offer many different levels of coverage...Again there is an extended warranty company who advertises on this site....Check out their plans and prices for comparison...$1000 seems a lot high..Like auto extended warranties..this can be a large profit center for the dealer and the price might be negotiable.......If this is only a structure warranty...the price is way too high...

[Latonya]

I took your advice and advised Clayton that I would prefer to get my own hazard insurance, they advised me that for the loan to go through, I would need to provide them with a paid receipt of the insurance in full for one year, so I am eagerly looking. At the minimum, what are things that I definetely want to be covered by hazard insurance?

[Mac]

Full replacement value on the house and contents. This is more value than you might think, on the contents. Think about what it would cost to replace everything inside, in case of fire.
What the lenders need is assurance that something of value will rise from the ashes, so that you would not decide to walk away. If you're in earthquake country, that policy might be worth it. Manufactured homes generally do very well; they fall off their piers if not strapped down, but are raised, repaired, and reset.