Posted by Steve–DC on October 17, 2000 at 21:09:28:
Karl,
Thanks again for the extra effort to do the calculations. I am sure others were interested as well.
Steve Smith
MH Insurance - Posted by Steve–DC
Posted by Steve–DC on October 16, 2000 at 19:15:54:
Looking for the names of some insurance companies that issue insurance on MHs. The MH is in Virginia. Lonnie says in DOW that he uses an independent agent. Is that the best source or would we be better off going with someone like USAA (we have several policies with them for other types of insurance)?
Steve Smith
Re: MH Insurance - Posted by Lonnie
Posted by Lonnie on October 17, 2000 at 07:49:52:
Hi Steve,
For the past several years, (since Foremost pulled out of my area) I’ve been placing most of my buyers insurance with American Modern Home Ins. I work through a local independent agency. Check with some of your local agencies to see if they represent American Modern. Or, you can contact the home office: American Modern Insurance Group, PO Box 5323, Cincinnati, OH 45201. Their ph # is 800-543-2644. They seem to have competitive rates, and will accept quarterly payments if needed, which is a big help sometimes when a buyer can’t come up with all the money needed to move in.
I have a very simple system worked out with my agent. I call him with all the info on the buyer and MH. He then faxes me a binder which I have the buyer sign, and I fax back to agent. That puts the insurance in force. I collect the premium from my buyer and forward to the agent. The home office then forwards a policy to me. Been doing business with this agent for years and never met the guy.
I don’t rent any MH’s, but I do remember my agent saying they could cover rentals.
I’ve found that the large national insurance agencies either won’t insure MH’s. or if they do, they charge a very high premium. I think your best bet is a small independent agency.
Good luck,
Lonnie
Re: MH Insurance - Posted by Karl (OH)
Posted by Karl (OH) on October 16, 2000 at 20:31:15:
I tried to use Nationwide when I started, because I’ve been with them for 15 years. My agent bent over backwards trying to keep me covered, but his underwriters finally cancelled the policies. “We don’t insure rented mobile homes” was the reason. (That’s fine, I don’t rent them! They didn’t care.)
So I found a local Foremost agent. This guy knew more about my mobile home business than I did. First thing he asked me -“so, are you doing Lonnie Deals?”
Foremost has a Rental policy for landlords that fits nice with doing these mobile home deals. I give my agent the info on any homes that I currently own, and as I buy them and sell them, he adjusts my policy, and bills me monthly. And I suggest to my buyers to use Foremost, cause they already have all of the info on the home, plus my agent gives me a heads up if someone’s insurance isn’t current.
Karl Kleiner
Re: MH Insurance - Posted by Steve–DC
Posted by Steve–DC on October 17, 2000 at 19:28:53:
Hi Lonnie,
Thanks for the additional info on the MH insurance. We do not intend to rent any MHs. I forgot specify in my original post that the insurance was just for the interim between buying and selling and possibly for the buyer. I got the number of a couple of agents (from Foremost) in NVA and I will call them tomorrow. I will also call the company that you suggested as well and see what kind of rates etc. they offer.
Got both of your books just fine. Studying them to try to get everything lined up properly for our first deal. Made a couple of mistakes so far but to be expected.
Looking forward to meeting you at the workshop.
Many thanks,
Steve Smith
Re: MH Insurance - Posted by ScottSC
Posted by ScottSC on October 19, 2000 at 16:27:05:
How can I contact that agent to find a local carrier of Foremost? I have the same problem covering while vacant for liability and damage.
Re: MH Insurance - Posted by lyal
Posted by lyal on October 16, 2000 at 20:57:52:
Karl,
After you posted this info a few weeks ago, I went to my local agent (who writes Foremost policies) and discussed it with him. To date I’ve only been insuring homes if they are worth a lot, later model etc and can only do it through a state assigned risk carrier.
He told me in no uncertain terms that insuring them as rentals would not work and I should make sure that you know that you are exposed…yadda, yadda.
Any chance you can email me your agent’s phone number so I can get some details (and maybe educate my agent…)?
Thanks, Lyal
Thanks Karl! - Posted by Steve–DC
Posted by Steve–DC on October 16, 2000 at 20:54:24:
Karl,
I was afraid that some of the nationally known companies might not be in the insurance market for mobile homes. I think my wife is still going to check with USAA but I will call a Foremost agent tomorrow if I can locate one in my area. I especially like the part about where the agent lets you know if someone is not keeping the insurance up.
This is our first deal and we’re trying to get everything covered properly. We close on it on the 31st of this month. It was estate sale listing–we just happened to be the first one to call about it–for $4K. Got to find that buyer now!
See you at the workshop.
Steve Smith
Re: MH Insurance - Posted by ScottSC
Posted by ScottSC on October 19, 2000 at 16:24:30:
I just asked the same question on the other chat line.
How to insure during the vacant time. Are you Inc. or are you using insurance to protect your assets.
Would like to know agents that will cover the South Carolina area.
Re: MH Insurance - Posted by Karl (OH)
Posted by Karl (OH) on October 16, 2000 at 22:29:45:
Lyal,
I want to make it clear that I don’t rent the homes out. I just insure them for as long as they sit empty until they sell. Then the buyer is responsible for taking out a policy, per the note agreement.
My agent is using the Foremost rental landlord policy as the vehicle for covering any homes that are in my name. I’ll send you an email with his phone number. He’s also a knowledgable real estate investor.
Karl Kleiner
Re: MH Insurance - Posted by Steve–DC
Posted by Steve–DC on October 19, 2000 at 16:44:26:
Hi Scott,
I have been having the same problem: trying to get insurance coverage on a vacant MH until it is sold. The agent I contacted today told me that the Foremost people would not cover the MH unless occupied. My agent suggested that I contact my current homeowner’s insurance and insure the MH as a second residence. I am not sure if this is a good idea but it will work in my case. If anyone out there has any opinions or experience with this choice (insuring as a second residence) please post.
Hope this helps.
Steve Smith
Re: MH Insurance - Posted by Steve–DC
Posted by Steve–DC on October 17, 2000 at 19:39:10:
Hi Karl,
A couple of quick questions about your rental landlord policy. Is this cheaper than having to take out an insurance policy on each MH that you purchase? And how is your rental landlord policy priced? It sounds to me like you have it worked out well–only one policy that you add/subtract properties to as you buy/sell them.
Thanks.
Steve Smith
Re: MH Insurance - Posted by lyal
Posted by lyal on October 17, 2000 at 08:58:14:
Karl, Thanks for the info. Yep, I understand that you are not renting. Me either. I usually buy cheap, rehab (haven’t been able to sell “as is” here) and sell with a note (CD where I keep the title until paid off).
That was my agent’s objection, that I would be insuring them as rentals with no intention of ever renting them out. My opinion was “So what…will the insurance cover me or not??” Definately not a “Think outside the box kind of guy”. I think he just wants the easy business. I asked him to investigate the best way to cover me for liability…unbrella etc. Haven’t heard from him since.
(Yep, I’m looking for another Foremost rep to talk to).
Thanks, Lyal
Re: MH Insurance - Posted by Karl (OH)
Posted by Karl (OH) on October 17, 2000 at 20:22:12:
Here are some numbers. I own one home that appraises at $19k, annual premium is $331. Another home I valued at $6k, premium is $104. So I guess I’m paying about 1.7% of the value as the premium. Thanks for making me calculate that, I hadn’t bothered until you asked the question. I don’t know how this compares to other providers, but the convenience of the policy makes it a good deal.
I called my agent today to add a home I control through a lease option agreement, he knew exactly what I was doing, and said no problem. I was off the phone in two minutes. Man, what’s that worth?
Karl Kleiner
Re: MH Insurance - Posted by ScottSC
Posted by ScottSC on October 19, 2000 at 16:32:33:
I am very interested in your agents name and phone number also. I have just spent the day trying to find an educated insurance agent to do exactly this drop and add as needed. Pleas help.
thanks
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