Insurance - Home Owners Ins. - Modular Home
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Hopeless
08-07-09, 06:54 AM
I'm wanting to know if "I missed something"..??
All my entire life I have had homeowners insurance, and you purchase the value of what the home is worth.
Then they offer replacement cost insurance, and you can get a percentage above the coverage amount you had purchased (I think 20%) and that is to rebuild your home in event of total loss.
Now we are looking for insurance on my girlfriends house. We had it at AllState and they covered it for it's value it sold for for two years (67000). She lost her job, and we started looking for new insurance companiens for a cheaper rate to save some money.
Long story short we dropped the policy for a couple days,. and then ended up having to go back to AllState.
SO here's my issues. AllState now tells us they can ONLY insure the home for it's value the appriaser puts on it. So they want to insure for $63000. So if it is a total loss we can buy 67000, but they'll only pay 63000. Also no mention of replacement cost, and we paid 50 or so dollars a year EXTRA for that.
Now this is a modular home (difference between that and a mobile home is the way it is set up.)
Mobile homes (Can) be set up with wheels still on, tongue still attached, etc. Also I have been told they are like an automobile. They 'depreciate' every year, and you have to purchase a "tag" for them every year and stick it on the outside of your trailor.
A modular home has all wheels etc removed. In set on a foundation, the sides are not just "underpenning". They have to have a permanent material (like Plywood covered by stucco) and the underneath of the home becomes a 'crawlspace'. Also the home os anchored down to the concrete footer. The unit becomes a 'permanent fixture' and is considered the same as a 'stick build' house.
So I'm wondering has anyone else everr heard of this nonsense,.. and which direction should I take. I feel like I'm getting something run up my backside, and no kiss.
Oh one last think. The house is just two years old.. she spent 10000 on renovations to the home AFTER she purchased it... it is a showplace.
In any event, needless to say she still has a mortgage on it. The mortgage value is still over 65000... I don't think the mortgage company would let allstate insure it for less than the amount owed. (Always been that way when I got insurance after buying a house, and everything is done threw taxes and esgrow... you HAD to carry enough insurance on the dwelling to cover it (them) in case of a total loss.)
All my entire life I have had homeowners insurance, and you purchase the value of what the home is worth.
Then they offer replacement cost insurance, and you can get a percentage above the coverage amount you had purchased (I think 20%) and that is to rebuild your home in event of total loss.
Now we are looking for insurance on my girlfriends house. We had it at AllState and they covered it for it's value it sold for for two years (67000). She lost her job, and we started looking for new insurance companiens for a cheaper rate to save some money.
Long story short we dropped the policy for a couple days,. and then ended up having to go back to AllState.
SO here's my issues. AllState now tells us they can ONLY insure the home for it's value the appriaser puts on it. So they want to insure for $63000. So if it is a total loss we can buy 67000, but they'll only pay 63000. Also no mention of replacement cost, and we paid 50 or so dollars a year EXTRA for that.
Now this is a modular home (difference between that and a mobile home is the way it is set up.)
Mobile homes (Can) be set up with wheels still on, tongue still attached, etc. Also I have been told they are like an automobile. They 'depreciate' every year, and you have to purchase a "tag" for them every year and stick it on the outside of your trailor.
A modular home has all wheels etc removed. In set on a foundation, the sides are not just "underpenning". They have to have a permanent material (like Plywood covered by stucco) and the underneath of the home becomes a 'crawlspace'. Also the home os anchored down to the concrete footer. The unit becomes a 'permanent fixture' and is considered the same as a 'stick build' house.
So I'm wondering has anyone else everr heard of this nonsense,.. and which direction should I take. I feel like I'm getting something run up my backside, and no kiss.
Oh one last think. The house is just two years old.. she spent 10000 on renovations to the home AFTER she purchased it... it is a showplace.
In any event, needless to say she still has a mortgage on it. The mortgage value is still over 65000... I don't think the mortgage company would let allstate insure it for less than the amount owed. (Always been that way when I got insurance after buying a house, and everything is done threw taxes and esgrow... you HAD to carry enough insurance on the dwelling to cover it (them) in case of a total loss.)
Whitenack
08-07-09, 08:03 AM
talk to as many insurance agents in your area that you can.
Insurance companies don't pay any attention to the amount the property sold for, they only care about the amount of money it would take to build it back if it were to completely burn down. Those values are different.
Modular homes are treated differently from normal homes, so you need to talk to several different agents to see who has the best option for you.
Insurance companies don't pay any attention to the amount the property sold for, they only care about the amount of money it would take to build it back if it were to completely burn down. Those values are different.
Modular homes are treated differently from normal homes, so you need to talk to several different agents to see who has the best option for you.
HollyGoLightly
08-27-09, 07:56 PM
Hello, wanted to give a bit of insight to what I read here. I am a licensed insurance agent and thought I could shed some light. Generally, most insurance companies have VERY different figures when calculating the reconstruction/replacement cost from the appraiser or purchase price. As materials and labor costs increase, you can see a very large difference (especially in todays economy) between the two, generally the reconstruction cost being higher, and most companies, like mine, require that you insure the home to that amount or higher. On the flipside, most mortgagees want you to insure the home at least the purchase price or above, so it sounds like you are definetly seeing that aspect correctly. Now, very often, modular homes have different rules and regulations, but generally not when it comes to what the home is insured to: almost ALL insurance companies go by a reconstruction cost, which is calculated BY the insurance agent, and this applies to modular homes as well. (As they can vary by features, ie, one modular home may have a 1 and a half baths versus 2) Check with many different companies....I will telll you from being in the industry that Allstate has a reputation for denying claims, and this may be why they are trying to underinsure you: modular homes are a higher risk and are tiered differently, so just beware of Allstate and gather several opinions!