Dealer Insurance

[Charles]

I am a licensed builder and plan to act as a modular home dealer. No dealer lot. Just build spec. houses pruchased directly from the manufacturer and put on my lots or build on buyer owned lots.

My insurance agent wants $650 for liability insurance - per house. This seems totally out of line.

Please advise if this is typical and if there is an industry souce for general liability insurance for modular home builders.

Charles.

[Roy Bonney]

Insurance premiums vary greatly by state, and their actual coverages. Most manaufactured home dealers use a variation of a "garage liability policy", which would not be available to a modular builder. You have to consider, first the general liability policy, and then some type of completed structures policy, in the event of litigation. It is important to know exactly what coverage you are purchasing, before you have a claim. I would also add, that in some states, coverage is very difficult to obtain at any price.

[rmurray]

Modular builders are required to have general contractors license in most states....I would check with the contractors association in your state for trade publications...They will be full of ads for everything you could possible need..and then some..

I am sure there are available umbrella policies...but they might cost far more than $650 per house depending on your volume..

Good Luck...