Our mobile home was totaled by our insurance company?

Question

and we have 35thousand in coverage Will they pay off the loan and then give us whats left of the money or are they going to put a new mobile home in of the same value and let us keep paying on it. We have tried to get intouch with the insurance company and so far no luck and I am freaking out because I have no where to go. Please help if you know anything about what insurance companys usually do or with your own experience

Answer 1

What does your policy say?  If it works like auto insurance, they will pay you "actual cash value."

Answer 2

They will not buy you a new home.

They will write an estimate for the damage to the home.  If the estimate equals or exceeds the coverage limit - they will consider the home a total loss.

They could do one check payable to both you and the mortgage company or they may do 2 checks - 1 to you and the mortgage company for the balance of the loan and 1 for you for any equity.  Each company has their own process they follow.

In my state, mobile homes that are not on a permanent foundation have a title to them-- just like a car title. The insurance company may have you sign the title to the home over to them. Or they may leave the damaged home with you to dispose of.

Since I don't know more about what kind of damage you have, there is not much more I can tell you.

If you need a place to stay -- contact the Red Cross in your area. Usually they will help out by paying for you to spend a few days in a hotel. This will give you some time to get in touch with your insurance company.

Answer 3

It depends on the coverage and what you set up with your insurance agent when you took out the policy on the mobile home.  Generally speaking, the insurance company will forward a check for the pay-off value of your loan to the mortgage company.  If any monies are left-over and your policy is written to reflect this, the insurance company will then forward a check to you for the difference between your insured amount and the loan pay-off amount.  At this point, you can offer to buy the mobile home back from the mortgage company (probably at less than market value) since it has been "totaled".  If you don't buy the mobile home back from your insurance carrier, you will be forced to move out and leave the home for the insurance carrier to deal with the disposal of your "totaled" mobile home.  If you do buy the mobile home back from your insurance company, it will probably be next to uninsurable because it has been "totaled" but at least you'll have your home.  I would call the agent that wrote your policy binder to talk with him/her about the fine print on your insurance contract and what you need to do from this point forward.  Good luck, and I'm sorry to hear about the damage to your home.

Answer 4

MOST manufactured policies are written on AVC not replacement.  If thats the type of policy you have and your home was a total loss, they will pay you the ACV.  Most likely you owe more on the home than the ACV, and you would then be responsible to pay the difference on the loan.  If you are lucky enough to have it on a replacment policy, they will pay replacement cost up to the limit you have.  They will NOT go get you a new home, thats up to you to do.  They will make the check payable to the mortgage company and you.