Posted On: February 14, 2005, 5:21 pm CST

Posted By: John

I am amazed that NONE of the articles I have seen on mobile home insurers seem to get the facts correct, and even more so, is the fact that they are all told the same misleading information from the department. Is it a lie to make things look better than they really are? I don't know ask Tom Gallagher.
The true facts are very clear, in addition to Auto Owners wanting to non renew all their mobile homes, the state HAS GRANTED permission to Pacific Specialty, and Axa Re to non renew ALL personal lines business in Florida. Liberty American and Mobile USA, which is owned by Liberty American, are not authorized to leave the state, but they are non renewing approx 50% of the mobile home business that they write in Florida. Service Insurance Company is also randomly non renewing an undetermined number of mobile homes. Several other carriers have not resumed writing new business yet since the storms. And several other carriers have written until they have no more capacity for any more new business. This leaves just a hand full of companies that are writing mobile home business in Florida, and they are really particular on what they want, such as age and location. It is going to get REAL BAD for mobile home owners that have to replace coverage or for new buyers. It is rapidly going to become a situation where Citizens is they only place to go and they are nearly double the premium of any other carriers. The sad fact is that Citizens rate is about where the other carriers need to be in order to stay in business and pay for reinsurance. If the state does not let companies raise rates, the state of Florida's insuror of last resort (Citizens) will be the only one left writing mobilehomes. Lloyds of London won't even entertain mobilehomes within 10 miles of water (or the exclude wind coverage). Face it folks, regardless of what you think about mobile homes, 20% of all residences in Florida are mobilehomes and the cost to insure them is going to go up. If you can't afford it, you might consider staying in Ohio, It's cold but no hurricanes.