Insurance worth it?

Do you think it is worth it to insure park-owned homes? Just how useful are those policies? Thoughts? Thanks.

I would think it would be worth it in case a home burns down. One of the homes in the park I manage burned down because the tenants used a fireplace that wasn’t supposed to be used. If I remember correctly, I don’t think they had insurance on it and we had to scrap it.

What’s the cost of a home burning down (assuming no-one is hurt and it’s not your fault, which is covered by liability insurance and we’re talking here about property casualty insurance). You lose the home, maybe $51k?
Hopefully that only happens like once every three years for a park of 170 homes, right? give or take?

So the math is you lose $51k every 3 years or $17k per year on average for 170 homes which is $100 per home, if I’m not mistaken.

So it’s worth it if it costs you $100 (or less) to self-insure. What is insurance going to cost? How many homes are you invested in? Can you swallow the risk? Or do you want to pay someone else to take this risk off your plate?

In addition to 1M liability I cover mine with replacement value insurance coverage. The home may only be worth 50K but if it burns the insurance replaces it with a new home (160K).

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