depreciation

[larry]

moved down to Florida & have been a MH owner for over 2 years now. love my H of M very much. could not afford a home like this in New Jersey. or the property taxes either !! my question is: if MH are equal to stick & modular homes, why do MH "depreciation" in value like an automoblie ?? i understand MH's have a blue book price like cars & trucks. so God forbid, if i have a fire down the road from now, i will not receive enough insurance money to cover my home. i asked my insurance agent about this & she told me they go by the blue book price. is this true also ?? thanks. larry

[Bill Fry]

Because they have no real estate value when they are on rented land.A home in a park usually goes down in value like a car.If your MH is deeded along with the land it is on then it will either go up or down in value .It will get appraised as a similar sq footage and land size home in its market.

[Roy Bonney]

There is more than one type of policy available. An actual cash value policy, no matter what product it covers, pays the value of the insured item on the date of loss. The replacement cost policy, reguires replacement, to achieve its full benefits, but pays for the new item in full. You need to speak to your insurance agent, about the policy you are purchasing. Don't wait until you have a loss and its too late.

[rmurray]

Roy is very correct...almost all insurance companies offer full replacement cost...Often they have 2 options..

Full replacement cost on the home..
Full replacement cost on the contents (used computers, tv's, steros..on and on.. suffer the same fate of short term deprciation)..

You should be sure you have both..The nice part is for the insuance companies that offer this option..usually the cost is very low..About $15/yr

[larry]

ok will call insurance agent & have full replacement cost added to my policy. thanks larry

[Bill Fry]

Full replacement cost of the home is a extra 15$ a year??Sounds a little to good to be true.When you buy a used home and ask for replacement value of the home they give you book value of the home at the time the policy is written.Replacement value of your personal belongings in the home is a tricky business when it comes time to collect.Read the policy carefully(the fine print) As mentioned deprecation of personal belongings is a whole new world in insurace companies eyes.

[rmurray]

Actually one of the biggest insurers in my area offer full replacement cost at only $10..for home and $10 for personal effects..

The way it works is they will buy a replacement item...not give you the money..if you want money you get actual cash value..

Example..you 5 year old TV is stolen..they replace with like kind..usually new..cash value would be very low..

Home..the insurance company buys a like size..year..home..or replaces with new if used is not available..I have sold insurance companies many over the years..A cash payment would only be at actual cash value..

[Bill Fry]

Still sounds a little flaky to me..usually new?Don't think I would want a insurance company finding me a used MH somewhere.But thats me,perhaps that arangement would be fine for others.