Insurance for RTO homes

I have purchased 4 homes to renovate and sell on an RTO basis. The homes are still on the dealer lot and are scheduled to be moved within 10 days. However, the agent I use for the park liability insurance is telling me that her underwriters will only offer a builder’s risk policy for the renovation and coverage of the trailers after the RTO tenants have moved in. At a cost of $5-7K per annum! Obviously this is a deal breaker. Who should I be talking to and what type of insurance can I get for the initial move as well as the tenancy of the new residents?

The moving company should be insured and bonded - the moving contract should state their responsibilities for damages to the home as part of the move. There are other threads on this that point out the contractual particulars to look for - make sure these are in your favor.

Insurance for a tenant occupied dwelling should be available from several smaller carriers - the big box insurance companies I have not found competitive in my state. I got coverage for a $25K mobile home earlier this week covering fire, theft, and vandalism, etc with a $500 deductible for $475 per year. If you get a fire only policy it will be even cheaper.

I think @KurtKelley is a more authoritative source on all of this.

You can purchase viable insurance on the homes, though the nature of it may change when it goes from (1) home held for sale, (2) tenant occupied home either (a) rented or (b) on which you hold a lien.

Insurance for these homes can be purchase on a schedule or blanket basis. Depending on your location, the cost will usually be anywhere from 1.5% to .8% of the value of the homes insured (ex. 4 homes valued at $25,000 each = $100,000 of homes x .010 = $250/home/year presuming the rate of 1%.

If you hire someone to move a home for you, use our Transporter Installer Agreement. It has the correct protective language and notes the exact insurance the mover needs to provide. - Forms Tab. And proper home inventory insurance should include collision/transportation risk too as it’s all to often that Transporters have poor Cargo/Transportation insurance.

Call if we can help - 800-458-4320


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I use Kurt Kelley to insure all of my homes.

Thanks for the referral. I will give Kurt a call.