Do I HAVE to have homeowners insurance?
Sunday, November 23rd, 2008 at
4:51 pm
Quitah asked:
I am a first time buyer in the housing market, and I am looking to pay for a home in all cash, no house payments.
I am a first time buyer in the housing market, and I am looking to pay for a home in all cash, no house payments.
I have put in a bid on a large modular home that is located in a “trailer park.” My mother in law says I have to have homeowners insurance.
Do I HAVE to have homeowners insurance if the house is paid off in full??? Or is this her just telling me to have it in case it were to burn down?
Anybody know what the average price per year is on homeowner insurance?
Tagged with: First Time Buyer • Modular Home • Mother In Law
Filed under: Homeowners Insurance
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yes you do because i did some reserch not long ago for my self thanks for asking
it’s best to have insurance in case something did happen.
should somebody fall on your property – it should protect you from being sued and losing your home
had a gentleman canceled his insurance – on his $5 million estate
because the $15,000/yr was too much
he left his toaster on in the cupboard – - and half the house burned down
$15k vs $3 million – - -hmmmmmmmm
all the best
(don’t be pennywise and pound foolish)
Since you won’t have a loan you may need not to but it seems wise to protect your investment.
You’re taking a huge risk if you don’t. Since it’s not financed, I don’t believe you do. But if a natural disaster were to happen, you will lose everything.
I would suggest having home owners insurance weather or not your home is paid in full. why invest that much money into a place to possibly loose it? Homeowners insurance helps you with a lot of things not just fires and its relativley inexpensive. i only pay $500 a year.
It may be required by the trailer park that it is located in. I would check with them, I assume you will be paying something to have the home “parked” there.
Also it is always a good idea to have insurance. Shop around for the best price and get a high deductible so the premiums will be less.
For the amount of money a home costs it would be incredibly foolish not to have insurance. With a $1000 deductible my insurance costs about $500 a year for my $250K house including the contents. Of course, if your home is two blocks from the beach in Florida you will pay a lot more.
Your mother in law is wrong. Unless the trailer park requires you to carry the insurance (and they might), there isn’t any law out there that makes you carry homeowners.
It’s stupid not to, but you don’t have to.
The biggest risk isn’t the burning down – the most you can lose is the house and all your contents. The BIGGEST risk is the liability, if someone gets hurt, because there’s no “top value” depending on what happens – if the mailman slips on the step because you didn’t shovel or salt it, and breaks his leg, he can sue you for all the medical bills ($100,000 for a bad break or more) and lost wages for the rest of his life, plus suffering. Then HE will own your mobile home – and get a garnishment on your wages until, well, forever.
There isn’t any “average” price on insurance. It depends on how much coverage you have, where you are, which coverages you have, and in your case, how old the trailer home is.
But trailers are depreciating assets – I’d think very hard, before sinking a ton of money into something that will be worthless when it’s 25 years old.
No you do not have to have home insurance unless there is a mortgage on the property. However, if it is in a trailer park, the park might require you to carry it. I would check with them and see. Insurance covers the home, your belongings, and liability if someone is injured on your property. It is in your best interests to carry it. Cost depends on where you live and the value of the modular home. Check with a local independent agent to get a price quote.
Home insurance is actually very flexible. I don’t understand all the fine print of my policy, but my home insurance agent is always helpful. Try visting your agent or a homeowners agent in your town. They will be able to assist you.