Require home insurance from lot renters

Hi all,

I want to require home insurance from my tenant owned home owners (aka the lot renters) in my community. This is to cover in case of fire, vandalism, etc. I have some questions for y’all… What insurance companies do this? About How much are the monthly premiums usually?

Thank you,

I do in all parks. It’s a headache but worth it for the time here and there a tree comes down or something. Make sure they have liability as well, something north of $300k. Foremost is probably the biggest ( bought thru a local agent). Allstate too. Typically under $900 a year in my area (New England) but we also have expensive homes.

Oh great. Thanks for the info! So you mean it’s about $900 per year per resident for their mobile home insurance?

That’s about the highest I’ve seen — obviously deductible, insured value, level of liability will change pricing. But it’s certainly not outrageously expensive. Like I said, it is a pain to collect all the insurance papers the first time but once everyone has it, they get in the habit of sending yearly.

And that covers fire, vandalism, and what else usually?

Also, as far as telling the tenants about requiring the insurance do you have any recommendations of a talk track to tell the tenants? Do you send out a notice to post on there door or do you just call everyone by phone and talk to them?

Right- anything a typical homeowners policy would or could (flood/earthquake/hurricane if they buy it, etc)

In terms of implementing, just add it as a park rule. Communicate the update however you normally do and give a 30 day deadline or whatever. Anyone who doesn’t send the info follow your normal violation of rules procedure.

We are switching over to this requirement as well.

One suggestion is to have your park entity listed as additionally insured and if they have a dog be sure to have dog bite coverage included.

“Insurance: Residents are required to maintain proof of current liability insurance (either separate dog bite insurance, or a homeowner’s insurance policy with liability coverage for dogs) in an amount no less than one hundred thousand dollars ($100,000) per occurrence and three hundred thousand dollars ($300,000) per aggregate with no exclusion for the subject pet in the insurance policy. The Park must be named in the policy as an “additional interest” for notification purposes.”

Also by getting the park listed as additionally insured you will be notified if the insurance gets cancelled.

Unless they own the homes outright won’t most lenders already require the homeowner to carry insurance?

Correct, but you still want the info to understand coverage levels and what liability covers. Plus I would guess this way is easier than keeping track of who owns their home vs who has a mortgage. Our parks are probably 50/50 in that regard I would guess.