Builders Risk Insurance

We try to buy a new mobile home will be converted into real property. We work with a banking institution very well known and have been approved for a construction loan. They say that the builders risk insurance must be purchased before we give final approval of the loan. I called the local insurance companies and they insist they did not cover mobile homes. I brought this matter to the attention of banks a month ago, but they are still telling me that I need to get builders risk insurance. What should I do? Supposably manufacturers of mobile home manufacturers do not cover insurance against the risks or contractor, it is to me. How does this habit? The buyer is usually responsible for this?

I've never heard of a risk policy on a mobile home manufacturers, because the actual construction takes place in a factory - whatever the type of foundation that you get for it.

Your best bet is to hire a general contractor who will do the job. The GC must establish a basis of "hedging" policy of the manufacturers of risk on a declaration form, so that each month it adds new projects, and removes those that are completed. You're the only chance, IMO, for any form of risk coverage builders - but in the name of the GC, it will probably not responding to the bank. You'll have to go to another bank, probably one that the manufacturer recommends. Unfortunately, because it is a ready to risk much higher (on a mobile home), the rate is probably higher than a conventional construction loan.


What most people do, is to have everything working through the manufacturer or the GC, and let them worry about the insurance / bank issues - that way, you are not responsible until that the title is transferred over, after construction is completed.

I assume you mean a real mobile home, not a house built, or "prefab" home.

The link below is an article on the basics of understanding builders risk insurance policies. It is easier to understand and most comprehensive article I saw on the subject.

... http://www.cityapplications.co Flag

The website below is a great resource for not buying a home, refinancing, and insurance:

http://homearama.blogspot.com

I would definitely check out the link for Surepoint.com, they were a great help when I bought mine.

Good luck!

It would be interesting to know what state you are in. Zurich offers a product that manufacturers may cover mobile / modular / manufactured products. Keep in mind that they come in a year with the policies, no refunds available, so they are very expensive for the time it takes to resolve a house. Try to give them a buzz. 866-279-8253

Insurance companies are right. Your loan officer is subscript. Talk to her supervisor.