I have park insurance from the “recommended” company but I recently was robbed at the park and the amount was more than my deductible of $1,000. When I called to discuss, I was informed that if I made a claim, my insurance would go up and if I make 3 claims, I would be dropped. Wow…why do I have insurance.? So it made me think that I probably really only need a huge deductible and take the savings on my insurance into a savings account to use for these “smaller” issues. Just wondering what you other park owners are doing regarding how much deductible?. How is your coverage working?Thank you.Vickie
Call Kurt Kelley (see above, he’s a moderator here). (800) 458-4320.We never keep cash on-site at any of our parks. We have $2mm general liability insurance per park, and insure all our mobile homes for full replacement, with a $1,000 deductible to get the best rates. We never file a claim for a tenant’s bad behavior (e.g. damage to a mobile home). We only file claims for weather-related damage.Best,-jl-
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Generally, insurance companies don’t penalize you much for smaller claims. However, repetitive similar claims or large losses caused by preventable accidents will likely result in higher premiums or non-renewals. Insurance companies seek operators that are most likely to have only accidental claims, versus avoidable and predictable claims.With regard to my own companies and insurance policies, my personal rule is that unless a loss is going to result in a net settlement check to me in excess of $2,000 or so, I won’t report it to my insurance company and will instead handle the matter personally. My feeling is that I want a clean insurance record so I’ll be attractive to the insurance companies that offer the best terms for preferred clients. And then, when or if I have a truly bad claim, I won’t have both multiple and large claims on my record - a sure recipe for being bumped to insurance companies that offer worse terms.As for deductibles, if you are looking to save money and you have the capital set aside to handle some losses yourself, I like higher deductibles. For instance, on my office buildings coverage, I generally carry a $5k or $10k deductible. I save some money on my premium and then end up paying for all of some claims I might well have paid for if I had a lower deductible anyway. Higher deductibles make more sense for those with larger insured property exposures than they do with those with limited property to insure. For example, if you have a $100,000 building with a premium of $700/year - the 10% savings you’ll get from moving to a $2,500 deductible from a $1,000 is only $70 - maybe not worth it. But if you have $10,000,000 of buildings and a $70,000/year premium, then that same 10% savings from moving up the deductible saves you $7,000. Ask your agent for some ideas on how much higher deductibles will save you, then make the best decision for yourself.One more quick note, General Liability insurance for smaller businesses almost always carries a $0 deductible with no option to move to a higher deductible.Kurt
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