Maybe my thinking is too simplistic, Briton, but I don’t see it as any different than say buying a car. You don’t leave a new car dealership without insurance… either proof your current policy will cover the new car or a new policy issued with the lender as loss payee. My insurance agent can issue a policy by phone and fax in about 30 minutes. Tell your new buys they have to deliver you a dec sheet (first page of the policy naming you as loss payee) in return for you delivering a key. If they have no agent, you should have one set up in advance to do this… aftre all, that’s what agents do… make money smile
In DOW Lonnie says that he makes sure there is insurance on the home as soon as he sells it. Now how would there be insurance on the home that day. You would almost have to go with the buyer to the insurance company, or always make them use your company. Most people who are 40 and are still buying a 6,000$ MH, have prolly never used any insurance before. How have ya’ll dealt with this, Thank you, Briton
Briton,
I don’t have my own park (yes I’m jealous!!) so it works a little differently but, here’s my whole sell / close process (sorry if it’s over-kill).
I leave a key with the park manager and place ads in the local ad rag and the daily paper. I get the calls and filter them for people with something for a down payment (usually 10% or so) and not abominable credit. I tell them to call the park manager and arrange to see the home. If they like it they call me back and we arrange to meet somewhere (McDonald’s near my house usually works well). We sign a purchase contract and I get a 250 dollar deposit. They agree to apply to the park (if they haven’t already) within 48 hours. At this point I explain that at closing, they’ll need insurance paid for the first year with my company listed as lien-holder. I give them a few names of guys I know of who write MH policies.
If they get turned down by the park, I refund their deposit (fair 'cause it’s not something they can control BUT also state law). I also tell them that if they get accepted but don’t buy, I keep the deposit money. When I tell them this I always say “Does that sound fair??” and stop right there until I get a positive response.
If they get accepted we set a time to close (McDonald’s again). They need to bring the insurance proof, balance of down-payment, copy of driver’s license and SS card (just started doing this) and they leave with a key. If they fail to close within 5 days, I keep the deposit and move on (only done this twice).
Insurance proof at closing is usually non-negotiable based on prior experience (“left the papers at home” turns into “I’ll get it next pay check”). Maintaining insurance is an ongoing maintenance issue. I have 2 or 3 people who’s policy always lapses and my patience for that is non-existent any more. I used to be nice and request that they take care of it. Now it’s a much more terse conversation.
All the best,Lyal
Like Dave Starr (CO), I have a write-it-over-the-phone guy. I don’t even remember how I found him - but he writes all my buyers. When the buyer starts asking money questions, I include $100 “closing costs” to get their insurance started: “Insurance runs about $300/year, give or take, on a pre-owned home like yours (say that whenever you can!!), and I have an insurance guy that will write you up with my phone call, and they bill you for the rest. If you want to shop around, or find your own insurance, that’s OK, but you have to be insured before I can hand you the keys.”
They ALWAYS let me do it.
Just another service I provide. That $300/yr gets them 15-20K on the MH, 15K on contents, and liability of 100K. More than enough to pay me off and have enough to get another place (I know . . . it’s happened - no one hurt though, thank goodness!)
Briton, start calling around, and find an insurance guy that will give you good phone. Lonnie has this in DOW, and it really streamlines a closing.