Mobile home insurance - older homes

Hi MHU Community,

I’m looking to sell some old park owned homes with owner finance, and I’m wondering what insurance everybody uses for this. Looking at the documents from the MHU bootcamp reference library, it requires the buyer to hold insurance on the home and prove that they have insurance.

The insurance that I’ve seen from 21st Mortgage that they provide internally for these older homes is about 7.5% per year of the value of the home. I’m looking for something obviously a little more competitive.

This home in particular is worth about 8k. Maybe its not worth requiring insurance for the buyer. But they could obviously trash it then and I would left with the bill. But the risk is smaller.


For owner financing we just do a fire policy with a deductible that we believe makes sense based on the value of the home. 7.5% doesn’t sound too far out of bounds on an old home under 10k value. My goal is to protect against a total loss.

Do your screening and get a down payment to cover any risk of someone trashing the place. I’ve done several of these over the years now and haven’t had that as an issue.

The buyer should get a renters or contents policy to cover loss of their personal property.

(1) For you (the “bank”), just insure (or not) for the replacement cost. Your regular liability provider should add it to the policy.
(2)For the buyer, they need to maintain homeowners insurance that includes liability coverage (not just replacement cost of home plus contents).
I’m not an insurance professional, maybe if you’re listed as an additional insured on (2) then that covers your needs for home replacement costs? Check with your agent.
But definitely require them to have liability coverage.

Most of our customer’s that have mh insurance are through Progressive, State Farm, or Foremost.
Those 3 do mobile home policies, many companies don’t offer MH coverage.

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I have my new owners provide home owners policy with me listed as mortgage lender

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