Tuesday, October 5, 2010

Terminology Tuesday - Trip Insurance

(Note: I think it's important to know the terminology and words used when learning any new business including mobile home investing. I came up with 'Terminology Tuesday' as a way to go over the terminology used in the mobile home business. It's important to know the terminology when talking to people in the business so you're all on the same page).

When moving a mobile home, one of the things I'm always sure to add is trip insurance. So, what exactly is "trip insurance?"

Basically, "trip insurance" is part of my due diligence when moving mobile homes to have the home insured from collision and damage on my end. Sure, using a mobile home mover they should have their own insurance regarding their mobile home moves.

(Note: When using a mobile home mover, be sure to check they are properly licensed and insured. Usually, you can simply do this by checking with the local transportation authority in the area. Many times you can simply ask the mover for their license number and use this to verify their credentials).

If the mobile home mover is properly licensed and insured, then why get "trip insurance" in the first place? Well, I get "trip insurance" because it gives me peace of mind. If something were to happen during a mobile home move and the mover's insurance disputed whether a certain claim was covered or not, at least I will have my own "trip insurance" in place as an added precaution.

Is this double insuring? Well, in a way. But, it really gives me peace of mind that things are covered on my end.

So, how does "trip insurance" work? Basically, I notify my insurance company the day of a scheduled mobile home move - the "trip insurance" is set for that day only. The cost I have paid in the past for this type of insurance has been $50 (singlewides only) - well worth it for my own peace of mind.

(Note: Depending on the area, this type of insurance may or may not be available. And, costs will vary. Be sure to check with your local insurance company/agent to see if this is available in your area).

Regarding moving mobile homes, it's really a personal decision. Some have cautioned against it due to the amount of money and time involved (i.e. moving costs, hookup costs, etc). Though, I would say - you really have to look at everything and ask yourself - is it worth it? It could be, or not - it depends.

Recently, I had to pass up on an opportunity - a potential mobile home move. Though the home was priced very close to what I was willing to pay for, I just could not commit entirely - it had to be priced a bit lower for me to even get into the deal. Why?

Well, when moving mobile homes there are the moving costs to consider but also the time involved and the psychological impact it can have - it can be a bit stressful. So, if I decide to pursue a mobile home moving opportunity - it really has to be worth it for me.

For those interested, here is a video about some factors to consider when evaluating a mobile home move:

Video Link

I hope this "Terminology Tuesday" post has been helpful and has given you some useful information to use.

Happy investing!

p.s. Feel free to leave comments on any post either here and/or my Facebook Page. Comments are always welcome, thanks for reading!


Jennifer said...

Hi, I have been reading your blog for quite some time now. You are so detailed in your posts. Thank you for sharing this valuable information. I never knew this type of insurance existed. I always learn something new here. Thank you.

Scott Costello said...

They used to have a show on HGTV about house movers. Every time the moved a house they would inevitably have to cross a bridge that was narrower then the house was. The house would then hang over a 40 foot drop on both sides. Tense to say the least.

Julie Broad said...

Rachel - as always - another great post. When I saw the subject I thought of a vacation ... trip insurance = vacation. :)

We have a couple of terrible houses that we bought for the land and future development ... but it's taking us much longer than we expected to develop them ... plus we haven't been able to pick up the third lot which we really need to make development worthwhile. Long story short - one of our options is to move a mobile home on the land so we can still get rent from the property. This has definitely given us many more things to consider should we ever do that. Thank you!

Mobile Home Gurl said...

(Jennifer) Hi Jennifer, it's nice to meet you! I'm glad you enjoy the blog and learn something from it. Thanks for stopping by!

(Scott) Oh, wow! That is scary, Scott. I'm kind of a bit paranoid when it comes to moving homes - I have this feeling they might fall off or something may happen. Having peace of mind with trip insurance really helps me sleep at night, thanks for sharing! :)

(Julie) Oh, lol Julie! :) I could see how the title can be interpreted that way.

Oh, that's interesting about the land deal. Yes, one of the things I like about the mobile home biz is the flexibility of it and the different options available since the homes are mobile and all.

It's funny because in many cases if you have a mobile and a regular stick built home in the same area they usually generate the same amount of rent in most cases. I guess the trick is just finding qualified tenants who don't mind living in mobile homes. If there's demand in the area, it's definitely much easier.

Thanks for sharing your land story Julie, I'm glad you enjoyed the post! :)

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