Posted by Dave(WNC) on February 15, 2002 at 11:14:40:
Holy Highball, Batman… 35 clams a month for $7,000 worth?!? My buyer just got a year’s coverage of $9,000 for about 175 bucks. I would keep shopping.
It looks to me your guy at Farmer’s is not experienced with mobile home coverage and writing it up like motor vehicle. Comprehensive Collision?
One thing you ought to consider is being your “own” insurance company during the holding period. If you are buying right and selling at an attractive price and terms you should be holding your MH for less than a month depending on the extent of repairs. Statistically, the chances of something happening during that short period with no one living in it are extremely remote. After all an insurance company merely bets on the probability that nothing will happen to the home during that period and charges you a fee for that bet.
So if a total stranger (the insurance company) that has never seen your home or knows where it’s located is willing to pay you money should something happen why can’t you?
So you can effectively compete with the insurance company by taking that $35 (or whatever the best quote is) out of your left pocket and put it into your right one. When nothing happens to the home, you just made $35 and can put that into your own insurance “fund” for the next home you buy.
Unless you are in tornado alley, or teetering on the edge of large crevasse or you suspect that your neighbors are insatiable arsons I would consider self-coverage. If someone broke some windows or other items, the deductible would eat up your payout anyway.
Consider your financial exposure on each deal and decide if you should pay for external coverage. If you only paid $2,000 or $3,000 consider sucking up the risk but if you paid much more than look elsewhere.
After all, if I had just bought the “Mona Lisa”, I’d be on the phone with Lloyd’s right after the auction, but if I bought a watercolor at an elementary school fundraiser I think I could sleep OK without coverage.
How much does a good night’s sleep cost these days? It depends on who’s doing the sleeping.
Get my drift?