Mobile home park Insurance

11 Replies

I know there are a lot that goes into getting an accurate Insurance quote on a park, but on a 36 space park (with 23 occupied park owned homes, 4 vacant park owned homes, and 1980s, 1990s and 2000s model homes) how much per month or year should I expect to pay (ball park)?

Other info:
City water and city sewer
Paved roads
Zero vacant lots
PVC pipes
1 employee (part time on site park manager)
No amenities (no pool or club house, etc.)

I’m getting quotes from insurance companies now. I just want to get your take on it as well.

Thank you!

While price is a factor, I would be more concerned about using an agency that specializes in community insurance. There are many things a general agent does not know about our business that could really hurt you in the long run.

  • Patrick Ford Stanford & Associates Hindsdale, Illinois (National)
  • Dick King Insurance Omaha, Nebraska (Nebraska, Kansas, Missouri, Illinois)
  • Kurt Kelly (Mobile Insurance) The Woodlands, Texas (Southeast and South West)
  • Barrett & Associates Bloomfield Hills MI (mostly Michigan)

 Between them they insure 80% of the communities.

We’ve been happy with Kurt Kelly at Mobile Ins.

As a Mobile Home Park manager and licensed insurance agent in Illinois and Missouri I would recommend Foremost insurance stated value policies on the mobile homes. This will cost you $25 to $35 per month per home.  

Mobile homes are NOT real estate. They are personal property and should be insured separate from one another with each mobile home owned in a separate personal property trust. With foremost you get discounts for being a member of a Landlord's association, multiple policies, USAA membership and several others. Foremost has a wide variety of products

 Get the park insured separately with a major carrier in your state. In the Midwest I would go with Shelter insurance for the price and service My liability policy is under $300.00 per year. We use agent Mark Wojick of Belleville, IL. 

@George Skidis

So it’ll be $35 per park owned home per month + Insurance on the actual park infrastructure and land? $35 per POH per month seems kind of steep. 

Prices vary across the country so I allowed for variance. Like I said $25 to $35 per month. 

A 1994 Belmont single wide 52 x 14 insured for $15,000 with $300,000 in liability, tenant occupied is costing me $27.06 per month. Paid annually that would be $302.00 per year but I like monthly budgeting.

Many insurance companies WILL NOT insure a mobile home over 20 years of age. Others will not insure tenant occupied homes.

Originally posted by @Gulliver R. :

@George Skidis

So it’ll be $35 per park owned home per month + Insurance on the actual park infrastructure and land? $35 per POH per month seems kind of steep. 

 It will seem steep until you need it. Remember, you can require the resident to pay for it.

@Ken Rishel I can require the resident to pay for that $35/mo (for their home) and then I (the owner) just pay for the insurance for the land and infrastructure?

For the resident to pay $35.00 per month for your policy the cost would need to be factored into the rent. You could not charge them separately. This is just like a single family home it is part of PITI. Principle Interest Taxes and Insurance.

You can require the resident to purchase "renter's Insurance" to protect their stuff and cover their liabilities. 

To my knowledge you cannot insure land for the named perils. You can obtain liability protection.

Infrastructure means roads, underground utilities and such. Never seen anyone insure that.

If there are buildings and fences on the land they could be insured for property damage.

Originally posted by @Gulliver R. :

@Ken Rishel I can require the resident to pay for that $35/mo (for their home) and then I (the owner) just pay for the insurance for the land and infrastructure?

 If a resident owns their own home, as the landlord you can require they keep the home insured to standards you set as a condition of you allowing them to rent a lot.

If you own the home and rent it to them, you can also require they carry insurance to the standards you set as a condition of allowing them to rent the home.

The earlier comment suggesting specific insurance companies like Foremost or American Modern are spot on, because they are two of only five companies that will write the specific type of insurance you want in place. As was discussed earlier, you need a knowledgeable agent who specializes in writing insurance for land lease communities. The best in the country were listed earlier in this thread.

What will you do if a home burns down and damages the homes on either side in the process? 

https://www.triadfs.com/news/5-costly-manufactured-homeowners-insurance-mistakes-to-avoid

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