guaranteed new replacement manufactured/mobile home ins.

[clt]

I need GUARANTEED NEW REPLACEMENT INSURANCE, which, in the event of total loss, would replace my older mobile home with a same size, same quality (my older home is graded #4/custom built), brand new current year model.

Obviously, I want "GUARANTEED NEW REPLACEMENT" stated right in the policy. Who sells this type policy???

[rmurray]

No one...replacement cost coverage is included or an option in many policies..but that does NOT mean guaranteed NEW home...only means a replacement home of equal quality and size..

[clt]

Are you saying no policy exists that will replace an older home with a brand new, same size, same quality home? Why then do ins. agents claim their policies DO based on the practice that most parks require you to bring a brand new home back into the park if yours is destroyed , regardless of what your insuance company will or wont do for you?

Doesnt 'NEW Replacement or GUARANTEED Replacement mean replacing your older home with a same size, brand new current year model?

Doesn't 'FULL Replacement or COMPREHENSIVE Mobilhome mean replacing your older home with a similar age and size home?

[rmurray]

I have never heard the terms you mention..insurance agents are highly regulated..but be sure you see it in writing..I never have..actually it would be an invitation to commit a crime and make it easy..Folks ...the not so honest ones..would buy the insurance and have "accidents" cooking all the time..insurance companies would go broke..

If you find this sort of statement in writing..let us know which comapny it is with..

The proceedure for the losss in a situation like you mention..would be to offer an equal quality replacement..or..cash settlement..if the park does not accept older homes..that would not be the insurance company problem..

You do not need to be in a rental park for this to happen..you could well be on a private site where the zoning has changed..your home could stay there forever..but when destroyed..might well not be allowed to return..

Life is full of risks..

[clt]

Got it. Now.....do I want a policy that says, " 'Actual cash value' means replacement cost less depreciation"?

[rmurray]

Actual cash value is the most conservative of all the values they can use..In this case they will offer you a cash settlement by using the various book values avaiable...This may or may not involve depreciation...but does NOT involve any determination of replacement cost..

Replacement value is important for many folks..simply because they finance much more than the selling price of the home...replacement cost would replace the home...ACV would only be the selling price.....

Remember..you are MUCH more likely to make smaller claims than total loses..Be sure the you have replacement cost on the contents as well...A 3 year old TV would be worth zip on Actual Cash Value...but might cost $300 to replace..On total home loses....full replacement on the contents can be thousands more coverage...be sure to have a good home inventory..

[Mark]

Example:
ACV might pay $500 for a TV
Replacement would pay whatever it cost to replace it with the same or simular model.

In my case, that was $2700 to replace my 61" TV with a simular (new) model.

Keep in mind that contents coverage is usually based on a percentage of the total coverage. I think it's 80%. So a 100k policy would have 80k in contents coverage.
However, contents coverage is for naught if you can't prove what you own and what it cost. Keep your receipts, take pictures of the items in your home, etc. Keep them in a safe place (preferably, somewhere else).

As for replacement coverage geared towards owing more than financed. Nope, not it at all. Simply put, you can expect prices for all things to go up. Labor, building materials, etc. I paid 120k for my home, the *insurance* company says it would cost between 165k and 195k to rebuild. Since I'm all about having my home rebuilt if it burns to the ground, you can bet I picked replacement coverage, not ACV.