GLIGA Blog

Plagiarized from my blog at http://blog.mylandlordinsurance.com. I have abbreviated the post here. For the full blog please visit my.., well.., blog. Thanks.

Different types of homes require different types of insurance. How the home is built will determine what type of insurance you can buy, how much it will cost, and what it will cover in the event of a loss.

A site built home is a house that has been built where it stands. The house is built on site from the foundation to the roof. This is the most common type of home people think of when they think of a house. A traditionally built home will usually appreciate in value over time.

The manufactured home is built differently from a traditionally built home. A manufactured home or mobile home as it used to be known is built in a factory. The house is built with a permanent steel chassis which is why they are commonly known as mobile homes because they are more easily moved from place to place. A mobile home also usually has a title like a vehicle rather than a deed like a home. The home has to conform with federal HUD guidelines but usually doesn't have to conform to local building codes. Manufactured homes tend to decrease in value over time.

A modular home also known as a prefabricated home or prefab is a hybrid of a site built home and a manufactured home. It is built in a factory like a mobile home but it does not have a permant chassis. The home is brought to the building site on a flatbed truck. The home also has to meet all federal HUD, local, and state guidelines for a traditional built home. Modular homes when built well increase in value similar to a traditional built home.

When it comes to insurance, many companies do not write manufactured homes. They are built on a chassis which means they are mobile, they do not have to conform to local building codes, and they decrease in value over time. There are a few companies that specialize in manufactored homes and can be very comparable in rate to a traditionally built home. You should look for a company that provides coverage for fire, wind, hail, vandalism, water, and liability. Also find out how much the insurance company will pay if you lose your home completely.

Many companies that will write a traditional site built home will also write a modular home. Since they conform to all local codes and appreciate in value, they are have a similar risk profile to a stick home. Some companies may not write a home if it was built in a factory so check with your agent to be sure you will be covered in the event of a loss.

The most difficult to insure is a manufactured home that is rented to another person. It can be very hard to find a company that will write a landlord policy on a mobile home. We can write all of these homes and we would be happy to try and write your business if you give us a chance.

Reprinted from http://blog.mylandlordinsurance.com.

There are a lot of investors looking at Detroit as a great place to buy cheap real estate. The thinking is if you can purchase a home with renovations included for $35,000, you can quickly turn a profit. Most homes in Detroit are brick, beautiful, 2 stories, and usually over 2,000 sqft. As a section 8 property the going rental rate is between $1000-$1400 a month. That is roughly $12,000 a year. In three short years the property would be paid and any future rental income would be 100% profit with the property having a resale value of about 50,000 if rented with a good tenant. Sounds great.

There's few problems with this plan:

(Summarized)

Insurance and Taxes

27% of homes are vacant

Lack of employment opportunities

Solution:

Rebuild City from Center. Consolidate public resources and reduce supply by demolishing vacant homes.

To get a more detailed description please read our blog. http://blog.mylandlordinsurance.com

General practice professionals are necessary in life. They are usually the least expensive person for what you need. They have a general understanding and can handle simple transactions. A specialist is usually more expensive but has the expertise and product to possibly save you money. A specialist can find circumstances that will either reduce your costs upfront or save you money on the back end. Specialists usually charge more for their service but save you money in the product you are buying.

We specialize in invstment properties. We write vacant homes, homes while being rehabbed, rental homes, apartment buildings and strip malls. We love to insure ugly homes and pretty ones. If its a investment property specialist you need, go to our blog and see what we have to say. Our blog is at http://blog.mylandlordinsurance.com.

If you are looking for a landlord insurance policy or are thinking about trying another agent to insure your investment home, here is a list of possible discounts you may want to make sure you are getting.

Claims Free Discount

Multi Policy Discount

Good Credit or Financial Responsibility Score

Year of Home

Safety Devices and Equipment

Tenant Screening Discount

Association Membership and Property Management Discount

For a detailed explanation of these discounts or other information that is useful to landlords please go to our blog  http://blog.mylandlordinsurance.com

Many tenants and landlords may be confused as to who covers what or how and what they can collect if either party suffers a loss. Right now you are probably saying, "What the heck are you talking about?!?" Insurance like real estate is a very complex and misunderstood industry.  Most people who are renting their home from someone else my have little or no experience with insurance or may have never needed to make a claim so they are unaware as to what is covered by a  landlords insurance policy or a renters insurance policy.
 
Both parties should have their own insurance policy to protect their own interests. Having an insurance policy is like having an attorney on retainer and someone to pay for the damages if you are found to be at fault. The insurance policy will defend your rights, and pay to repair what you lost. Hopefully we can put together some information that can be helpful to the tenant and the landlord when thinking about what insurance to buy. For more detailed information on coverages like loss of use or loss of rents, please visit our blog at http://blog.mylandlordinsurance.com to read our complete post.