Property Insurance


#1

What is a good rule of thumb for property insurance on a per site basis? I’ve been assuming around $75 / site, exclusive of any park owned homes.


#2

@KurtKelley may be able to give you a very rough ballpark.

-Brandon


#3

Here’s some ballpark numbers. Keep in mind, these vary significantly based on geography and community shape/standards.

General Liability Insurance:
$30/site
$70/rental home
$300 per pond
$500 per swimming pool
$250 per playground

Property Insurance:
.006 times the value of a site built building or above ground utility infrastructure
(ex. $100,000 park office = $600 per year)
.010 times the value of park owned homes
.003 times the annual revenue for loss of income coverage
.030 times the value of signs

Hope that helps,
Kurt


#4

Thanks so much Kurt, this is exactly what I was looking for.


#5

Good to know! Very helpful information!


#6

Kurt,
As always, good information. What other policies and ballpark estimates should be considered? I like Frank’s advice on being highly insured, so make sure I cover bases.
Looking at a 30 lot, probably in the $400K-450K price range, no POH, homes 1990’s era, 90% occupied, city water/sewer/trash, no flood plain, good paved roads, individual electric meters, 55+ park in Central Texas. Some homes have natural gas service so there are buried pipes. Plan for now is having an onsite “eyes and ears manager” to relay communications to me, not sure if I’d need some coverage for them.
Coverages of interest would be:
Below ground infrastructure
Wind
Dog bite
Workers Comp
Contract labor
Anything else you can think of?

Thanks!


#7

I apologize for the dated reply!

Here’s some feedback:

  1. We often include some “utility infrastructure” coverage for our park owners. We like a lump sum amount between $800 and $1,000 per site to cover above ground pedastals, etc. More coverage can be added for below ground infrastructure, but it generally adds insurance costs with offering little more coverage. Few policies include coverage for earth movement/earthquakes and flooding, the two perils most likely to cause underground pipe damage - other than a random backhoe accident which can generally be repaired reasonably;
  2. Wind/ dog bite / contract labor liability etc coverage is included in almost all of our package offerings automatically. If we can’t get it for a specific property, we make sure our clients are aware of that;
  3. Workers Compensation coveage is a smart idea for any business operator with employees. It’s mandatory in all states but Texas for those with more than one or two employees, and it’s pretty cheap for park operators - usually $500/year with only one or two employees;
  4. We will recommend the following coverages too:
    Loss of Business Income with extra expense
    Extended loss of income
    Tenant and employee discrimination coverage
    Hired / Non-Owned Auto Liability (manager causes and accident in their car and you get sued)

Reach out to me by email or phone when you’re ready to take the next step.

Kurt@mobileagency.com 800-458-4320, x 117