As it looks for ways to drop its risk, marconews reports Citizens Property Insurance Co., the state-run insurer that covers 130,000 factory-built homes in Florida, most of which are over 20 years old, is depreciating older homes, offering cash value in case of a loss instead of replacement cost. In one instance, a couple did have coverage of $64,000 on their 1988 manufactured home purchased for $67,500 in 1998. That coverage, which cost $1,362 a year in 2012, has been reduced to $18,000, now costing $1,129 per year. If they did suffer a loss they could not buy much for $18k. Likewise, if they tried to sell their home, no one would likely buy it because it could not be fully covered. The change in coverage applies to manufactured homes built before 1994, which accounts for roughly 75 percent of all MH statewide. Jim Ayotte, executive director of the Florida Manufactured Housing Association (FMHA) says if the situation does not change, retirees may go elsewhere. As MHProNews has learned, he added if homes are destroyed, it will leave holes in communities. Legislation to counter Citizens’ cash-value policy has not made it through the legislative process. ##

(Photo credit: MHVillage–Lake Village MHC, Nokomis, Fla.)