Insurance coverage amount

Manufactured home insurance is different than other types of homeowner insurance. Resolve your questions and concerns here!
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Dan Stifflear

Insurance coverage amount

Post by Dan Stifflear » Tue Dec 14, 2004 6:40 pm

I have purchased a 2005 doublewide that is now on its leased lot in Ocala, FL being readied for our purchase and move-in in early January. My wife and I paid $89,800 for it (including up-grades, taxes, etc). In checking with just 2 insurance companies in Ocala for replacement coverage of $100,000, both informed me that whoever they deal with would not go above $89,800 in coverage. If I am willing to pay the premium for $100,000, why am I being limited in my insurance coverage?
While I don't expect my new MH home to be worth $100,000 next month or even 3 months, it is possible it could appreciate in value over the 12 month life of my policy. Not only that, but the replacement cost of the identical home could be close to $100,000 in a years time given todays housing enviroment in FL, not to mention the rising costs of construction materials. Any suggestions?

rmurray

Re: Insurance coverage amount

Post by rmurray » Wed Dec 15, 2004 6:50 am

They will only cover the original amount...this is a protection for them to avoid insurance fraud...

BUT...it you buy full replacement coverage on the home..it will replace the home with a new one ...no matter what the cost...if the insurance company has to pay $100,000 they will..

Get full replacement...and enjoy your new home..

Mark

Re: Insurance coverage amount

Post by Mark » Wed Dec 15, 2004 12:13 pm

Ah, the caveats of a manufactured home.

If you get 90,000 in coverage for replacement costs, then you will likely only be able to get 108,000 in replacement (90k x 20% overage allowance, typical).

If possible, you should insure it for what you expect it to cost to replace it.
Also remember that your contents and other structures coverage is a percentage of your total coverage, the lower your total coverage, the lower your contents and other structures coverage will be.

I had no problem getting $160k coverage on my modular, even though I paid a good deal less than that, because the insurance said it would cost _at least_ that much to replace it (based on rebuilding as a site built home). BUT, that's on an off frame modular, and being able to get regular homeowners insurance, rather than manufactured home insurance.

Frank

Re: Insurance coverage amount

Post by Frank » Mon Dec 20, 2004 1:44 pm

What is the difference between "off frame modular" and other.

Is it that the house is on a slab flat and not on the steel frame?

Mark

Re: Insurance coverage amount

Post by Mark » Mon Dec 20, 2004 4:24 pm

Pretty much.. the steel frame is used the transport the home, disconnected on site and the home placed on the foundation with a crane. That essentially makes it a permanent, non movable structure.

rmurray

Re: Insurance coverage amount

Post by rmurray » Tue Dec 21, 2004 5:04 am

For a porposes...an off frame modular is a home built mostly in a construction facility to your local building code....tranported to the site ...then moved to a pre installed foundation...it connect to the foundation in a similar mannor as any wood floored home...Some are on basements..others on foundations..

Insurance for this home is very competively priced..

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