Whether it be a mobile home or a stick built home, your home represents a significant financial investment. It is important to be familiar with all things regarding your home, especially the insurance policy. Do not make the mistake of assuming that your insurance representative will put together the perfect policy. You need to be aware of what coverages you have and how they work. When you are aware, you can prevent potential problems, and you will have a say in the type of policy that you have. There are so many options and riders you can add to your mobile home insurance, this article will only cover the major points of the policy.
Whatever number is listed under dwelling coverage represents the maximum amount that your insurance company would be willing to pay for your mobile home in the event of a covered loss. Losses caused by fire, theft, vandalism, a burst pipe, wind, falling trees and similar events are usually covered. Be aware of your policy. Some companies exclude specific types of losses while including others. Also, if a covered loss occurs, you will have to pay your deductible. Be sure to choose a deductible that is affordable for you. Most important for this section, many insurance companies will insure a mobile home as long as it was built after 1976, but if the mobile home is ten years old or older, many insurance companies will only cover the home for actual cash value, not replacement cost. This means that if you have a claim, you may not receive enough money to repair the damage to your home.
*Detached Structure Coverage*
This coverage is intended to protect any other structures on your property that are not directly attached to you mobile home itself. Most of the time, this coverage equals ten percent of the dwelling coverage. Be sure to adjust the policy if you need more than the ten percent.
*Loss of use Coverage*
If your home is rendered uninhabitable by a covered loss, loss of use coverage will pay for the rental of a home or hotel room until your home is safe to return to.
*Personal Property Coverage*
This coverage will protect your personal belongings against covered losses. Coverage should extend to property that you might be keeping in a storage unit. It does not cover vehicles. The best way to think of this coverage is to imagine yourself moving. Anything that you would put in the moving van, with the exception of ATV’s or recreational vehicles, would be covered by this coverage.
*Medical Payments Coverage*
This coverage is in place to protect you from having to pay medical bills for anyone who might become injured on your property. It does not cover you or anyone living in your home. It is strictly for those who might come on the property and become injured in an accident. This coverage will not pay for injuries that you might intentionally inflict on a person on you property.
*Personal Liability Coverage*
Personal liability coverage follows you no matter where you go. It will pay out in the event that you are found to have caused injury or harm to someone or something by your negligence. If you take a cruise and accidentally knock someone down a flight of stairs, and they sue you, this coverage will protect you. This coverage also comes into play after the medical payments coverage limits are exhausted.
Be aware of your mobile home insurance policy. Knowing what the coverages are and how they protect you can make a lot of difference if you ever have to file a claim.