Top 10 MISTAKES Park Owners Make
How do you know if you have the right insurance to protect your business? Here are 10 common mistakes park owners make when purchasing insurance coverage.
Failure to list/insure all your improvements on your policy. Many simply don’t include above ground utility infrastructure, signs, fences and smaller buildings.
Undervaluing your Property. Too often, people insure things based on their tax value or what the prior owner valued it at. For most regular construction buildings, start at $70/ft. For mobile homes, don’t forget to include the transportation/installation costs.
I won’t insure my park-owned homes because of the low value. A $10k loss might not be catastrophic, but if you lose 10 homes at $10k each in a single storm, that’s too large a loss to not seriously impair your long-term investment. With a higher deductible policy, you can have good coverage and low premiums.
Buying insurance from a non-specialty agent. They don’t have the knowledge or insurance company contacts to get you the right coverage or a good premium.
Not buying loss of business income and extended loss of business income coverage. Both are critical for park owners.
Paying for the insurance of every contractor that works for you. If they don’t have insurance, you and or your insurance company will end up paying any claims against the contractors you hire. Make them prove coverage with appropriate Certificates of Insurance.
Failure to include data breach and tenant discrimination coverage. These are large and growing loss drivers for park owners.
Erroneously Calling an Employee an Independent contractor. What functions, and when and how they perform them define who is an employee. A simple contract stating otherwise won’t do it.
Not buying Workers Comp when needed. If you have employees you need workers compensation insurance. Employers are responsible for medical expenses and lost wages for up to life when employees are injured on job.
When you sell mobile homes, Not including coverage for selling mobile homes on your policy. You need general liability insurance that covers the park, any home sales, and all associated operations.
Some of these may look like ways to save you some money in the short-term, but in the event of loss, that small savings will not be much comfort. Paying too much in premiums, having inadequate or too much coverage, or having the wrong coverage are all mistakes that we can help you fix. Give us a call!