Are there any companies that underwrite flood insurance for parks or do park owners usually only have general liability policies?
To clarify, I am asking about parks where all of the homes are tenant owned.
Thanks!
What do you want to insure? As in, if a flood happens, what do you want coverage for if all the homes are tenant-owned?
basically for lost income. If I have 40 renters and their houses get destroyed I would like to be insured against that. Also in the event a flood makes the land unlivable because the soil gets ruined by flooding.
I don’t think that is available. I looked for it (lender requirement) and eventually had to convince the lender to give it up.
Brandon@Sandell
I believe the coverage you seek is the Business Income you may lose if your community sustains a flood.
Who owns the home is irrelevant because the rental payment to you - for the homesite or a rented home - is NOT covered under the standard Business Income policy form. Flood needs to be a “trigger” to coverage, and yes,we represent companies who provide that coverage. Be forewarned: this is a highly specialized coverage offered by few carriers, and it is expensive. But if it is a precondition to your getting a loan, or guaranteeing the future viability of your community, you may find it prudent to investigate it. Patrick
You can buy flood insurance on structures / buildings /homes via the National Flood Ins Program, and if your park is in a 100 year flood plain you may have to do so. Your home owning tenants may also have to which adds to their cost of living in your park. Furthermore, as Pat mentioned, the cost for a park owner to have loss of income coverage that includes flood as a covered peril is very high for a one or two park owner. One of the largest providers of this coverage recently quit offering it, which makes it even harder to find/more expensive.
If you are contemplating buying a park in a 100 year flood plain, it’s important to know how many of the home sites are below the 100 year flood zone base elevation, and also how many of the mobile homes’ bottom floors are above this elevation. Those tenant owned homes at or below it, if mortgaged, will have to carry NFIP insurance unless the mortgage holder is a private/smaller finance company.
Hope that helps,
Kurt