Mobile Home Insurance Policies

The process of purchasing an insurance policy for a manufactured or mobile home is basically the same as buying a standard homeowner’s policy, with just a few exceptions.

Every homeowner’s insurance policy should have coverage for the structure, including all of those located on your property that you own, personal property for all your belongings, and liability coverage for your family and any of your guests.

Having a manufactured home or mobile home…both are the same since the government changed the name from mobile to manufactured for anything built after June 15, 1976…means that you have a few other things to consider. Such as, when do you start your coverage? As soon as it leaves the lot? Once it sits on your land? Or, should you have coverage to move your home if there is some type of natural disaster such as a slowly flooding river or perhaps a forest fire approaching your land? These types of things should all be considered.

For structure coverage, you need to determine whether you will have replacement cost or actual cash value. With replacement cost, you are reimbursed for the cost you incur to replace your home with similar property, brand new. With actual cash value, you are paid the current replacement cost of whatever you lost, minus depreciation. (This generally includes the estimated wear and tear on the item damaged or the loss in value of that item because of aging and use). If you have an older mobile home, you won’t be getting much back with an actual cash value policy.

As part of your structure coverage, you have to look at the types of things that are covered. Some policies will be very limited in scope and could prevent you from collecting on your policy if something catastrophic were to happen. Make sure you are covered for typical perils like fire, windstorms, hail, lightning, and explosions. These policies are considered comprehensive and will provide you with the most protection.

For personal property coverage, you need to take a full assessment of your belongings and determine what type of monetary coverage you need. What would it cost to replace all of your personal belongings? You may also want to get extended coverage for specific items like jewelry and firearms that aren’t typically covered. You also have the choice of selecting replacement cost or actual cash value for your belongings which was discussed above.

In order to make sure that all of your personal property is covered, make a complete inventory of your belongings and keep it up to date. Most major insurance companies have online inventory tools that can be downloaded for your own use. They are easy to use and will help keep you covered in the event of a casualty.

Many people do not have enough liability insurance. If a guest were to fall or get injured at your home due to your negligence or even something that you couldn’t have prepared for, you can be held liable for all of their medical expenses and more. While the likelihood of something happening may be slim, having that extra coverage could save your home. This coverage typically falls under Family Liability and Guest Liability insurance. Each policy is different so you have to look closely at each one to make sure that you have the coverage that you need.

With owning a manufactured home, you need to consider other types of coverage as well:

– Emergency removal: Covers a portion of the cost required to move your home to prevent it from being damaged due to a covered event.

– Trip collision: Covers your home while it is being transported to another location. Once it leaves the sale lot, you are responsible for it.

– Flood: Covers your home in the event of a flood. Not everyone needs flood insurance but if your home is in an area that has potential for flooding this coverage is a must.

– Renting to others: Many manufactured homes are rented out and in some cases on the same property as a main home. This special insurance is perfect for those situations.

There are all sorts of companies that will provide you with mobile home insurance. Knowing exactly what type of coverage you expect will go a long way in making sure that you select the right policy for you. As with most things, you get what you pay for. While saving money by going to the discount store for clothes might be OK, skimping on your homeowner’s policy is a bad idea.