Posted by Dan - GA on October 08, 2003 at 16:33:50:
Ashley:
You may be mixing apples and oranges. Are you looking to insure each home that you own for damage ie fire earthquake tornado etc… or are you looking to have a general business liability policy to prevent yourself from getting sued?
The first policy is generally a small policy for the purchased or sold value in the home, the second policy is usually an umbrella policy for anything you do in the business and is typically for $1,000,000 or more of insurace. Ironically, the liability policy may only be 2 to 3 times more expensive than the loss/damage policy may be on a 20k mobile. Any insurance co should be able to write the business liability policy. Not all agents write MH loss/damage policies. If that’s what you’re looking for, Foremost Insurance sells that in GA. Use Yahoo maps to lookup your address and then search for nearby insurance agents. If you can’t find one, email me and I’ll send you the name and # for my Foremost agent.
Posted by Ashley GA/AL on October 08, 2003 at 15:49:56:
I know this is probably a stupid question but how do you get personal liability insurance? I am just starting out and want to do a few deals before I set up a LLC, get business license, or get a dealer’s license but from reading the archives I see that personal liabilty insurance is a good idea. I have a called several insurance agencies to get quotes but I am confused on what to ask for. It sounds like you have to have liability for each residence. The agents were simply baffled when I told them what I was doing with financing mobile homes. Any help is greatly appreciated. Thanks!
Posted by Anne_ND on October 09, 2003 at 07:36:46:
Ashley,
I agree with Dan and Rod. Form the LLC first. I (sometimes) have a loss policy on my vacant MH while trying to sell them; my LLC has a liability policy and I personally have an umbrella policy for $2M in case anything falls through the cracks. In order to get into a MH my buyer has to bring me a binder for an insurance policy that names my LLC as loss payee.
Don’t do business in your own name, the costs of forming an LLC and insurance should be considered costs of doing business.
Posted by Rod - Mo on October 08, 2003 at 20:48:47:
Ashley,
I suggest you rethink your position on the LLC. The cost is probably less and is probably a better protection vehicle than insurance. Insurance means the predators will see the deep pockets of the insurance company, which are probably deeper than the pockets of your LLC. More temptation to sue. Just don’t keep much in assets in the LLC.