Liability Insurance


#1

I’d like to know what everyone is doing for Liability insurance. I’m a Parked Owned MHP owner who has increased my park from an 11 trailer two house community to what I currently have now. (25 single wides, a small set of storage units - 19, and my two houses). My rents have increased from 4K a month to just over 9K a month. My State Auto liability insurance has increased from 1k a year to over 3.2k a year. This is for a 2 Million dollar policy. Is this in line or should I shop elsewhere? I am currently looking for ways to lower my total insurance premiums and want to know what others are doing with this (Liabiltiy), and their MH Insurance. Thanks in advance.


#2

I use the Farm Bureau in NC and they have figured out a way to insure more than 40 homes for me now. That was a problem before


#3

Are they insuring the home or just providing liability insurance or perhaps both? How much liability insurance do you carry on 40 homes?


#4

I too use Farm Bureau in North Carolina and have for several years. I have both a general liability policy as well as insurace on some but not all of my park owned homes.

Some of my park owned trailers are quite old (60’s models) and do not warrant my insuring them against damage etc. but they are covered under my liability policy (of course).

I insure the other homes based upon the value of each home (set by me and likely much less than they would let me). I need to keep premiums (expenses) under control and prefer to only insure against things that would truly hurt me. If I insure a nice doublewide for say $20k I know that I would have to do a great deal of the work to remove the old, buy a repo and do all the rehab myself for that price but this is what I do on my properties on a daily basis anyways. Others may not be set up for this or want to do this so they would want to insure for more.

Keep in mind that just because you might choose to (over) insure a home does not mean you will get that amount in the event of a total loss. Also take a look at what they pay you to remove a home that has been a total loss (Scott got a grand total of $50 for foremost to remove a completely destroyed doublewide that a tenant burned to the ground… a child died in this fire).

Tony


#5

Is it too personal to ask how much coverage you have on your general liability policy? Am I over insuring myself by having a 2,000,000 policy for a small park like I have? I know the difference wasn’t that much to go from 1,000,000 to 2,000,000. But state auto is really hosing me I think.