Question About Home Insurance and Beneficiaries

[zaroba]

Hi, new here. Mainly just registered to ask something.


I live in a modular home community in PA. Recently, the head office sent out letters to all residents requiring that we insure our homes for $100,000 and make *them* the beneficiaries.

First, I don't think nay homes in the community are worth even over 50k and by the wording in the letter, it sounds like they expect *us* to pay for this insurence.

We all insure our homes, they get burnt down, the community office gets a hundred thousand dollars and we're left with no house, no money, no items. Seems really sketchy to me.

Is this legal?

 

[Guest]

Hi, new here. Mainly just registered to ask something.


I live in a modular home community in PA. Recently, the head office sent out letters to all residents requiring that we insure our homes for $100,000 and make *them* the beneficiaries.

First, I don't think nay homes in the community are worth even over 50k and by the wording in the letter, it sounds like they expect *us* to pay for this insurence.

We all insure our homes, they get burnt down, the community office gets a hundred thousand dollars and we're left with no house, no money, no items. Seems really sketchy to me.

Is this legal?

Are they asking to be 'beneficiaries' or 'additional insureds' on your policy?

I assume you own the home and are not renting. Is that correct?

 

[zaroba]

looking at the paper, it says 'additional insured'

Yes, I own the house. To the best of my knowledge, all the houses in the community are owned. But the property the house is sitting on is rented.

 

[b61mack]

This just means you add them as additional insured, on your policy. Not a new policy. The value is based on the replacement value, not the selling value.

 

[xrac]

There is nothing out of line with them being named as an additional insured or with them requiring a certain insured amount. They are just protecting themselves in he event of a catastrophe.

 

[Guest]

There is nothing out of line with hem being named as an additional insured or with them requiring a certain insured amount. They are just protecting he selves in he event of a catastrophe.

What he said. Totally normal and very common. All it means is your liability insurance will cover them as well as you in the event of a lawsuit.