Preview:
SEATTLE — No doubt manufactured and tiny homes are significantly cheaper than traditional homes, but there’s often a surprise after the purchase. Insurance can cost twice as much.
So what gives?
Why does it cost more to insure a smaller home? The insurance industry points to greater susceptibility to wind, hail damage, tornadoes, fire, theft and vandalism compared to a traditional home.
But there could be more to it: Some consumer groups say insurance companies may be more likely to take advantage of “financially vulnerable” people, charging them more money for fewer benefits. There also might be outdated discrimination from the days when...
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I love that everyone today wants to try and attach a “hidden agenda”:
Why does it cost more to insure a smaller home? The insurance industry points to greater susceptibility to wind, hail damage, tornadoes, fire, theft and vandalism compared to a traditional home. But there could be more to it: Some consumer groups say insurance companies may be more likely to take advantage of “financially vulnerable” people, charging them more money for fewer benefits. There also might be outdated discrimination from the days when mobile home parks were mostly located in poor and crime-ridden ZIP codes.
If I go to Taco Bell and order the bean burrito is it because I really like the taste of a bean burrito or instead because I’m making a subversive statement against the meat industry?
Look, insurance industries are tired of taking huge losses by writing policies that are known losers. That’s why they’re leaving Florida and California. The days of corporate subsidy of bad risk bahavior is over on the part of the insurance community.
Yes, tiny homes are often flimsy, top-heavy, built by amateurs, and are often located in weird areas. I wouldn’t insure them, would you?