How much homeowner’s insurance do I need?
I am purchasing a peice of property and a modular home that is not new, it is maybe 10 years old. I am doing the whole owner finance/contract for deed deal so I am having to pay 120,000 for the place. I think it is worth less. But hey, that is what bad credit gets you. Anyway he said I would have to buy homeowners insurance and I asked how much and he said 120,000. This home itself without the land especially is not where near worth 120,000!!!! Why would I need that much? And if something happened to home would it be right for insurance company to pay 120,000 for a 10 year old modular home. May be even a little older for all I know but it is not 120,000!!!! What is the minumum that I should get? I don’t have much money and never had homeowner’s insurance.
It is not being loaned on by a bank. The owner is financing it to us.
Waiting to repair our credit really is not an option because we live in a 2 bedroom mobile home with a 4, 3, and 1 year old. We live in the ghetto of a small town in a trailer park. I have to get out of here NOW!!!! It is not safe.