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MOBILE HOME INSURANCE
Nowadays, mobile homes, otherwise known as manufactured
homes, appear more and more like conventional homes,
sporting everything from basements to fireplaces. If you
want to protect your mobile home, you will need to buy
insurance.
Shop around
Finding the right type of coverage is important no
matter if you have an old-fashioned trailer park variety
or a newer model that is more like a conventional home.
Similar with any type of insurance policy, you want to
obtain multiple quotes from several different carriers.
It is likely that you will discover that few companies
will be willing to underwrite policies for either
contents or homeowners for older homes.
Check out your state's insurance office website to make
sure any carrier you are interested in has a solid
reputation and is financially strong. Also, you may want
to look for an insurer that specialized in manufactured
homes.
If you own your own manufactured home, you should
consider buying replacement value coverage on your
dwelling. Unfortunately, you will probably pay more for
less coverage than in a conventional home. This is a
because the value of these types of homes is not so good
and they tend to experience greater loss. As a result,
you can expect to say for a policy offering $40,000
worth of coverage as a homeowner policy value of
$130,000.
When in the market for your policy, there are two main
issues you want to consider: what articles or structures
are insured under the policy and what specific dangers
are either excluded or included?
It is likely that you will come across a policy that
covers your home but excludes hail or wind. Or maybe it
protects you from a roster of specific dangers called
perils, but you are limited to damage as a result of
those forces.
Instead, you want to be certain that your belonging and
your home are covered under any situation.
There are many companies that do not offer flood coverage
as part of their standard policies. However, many
manufactures home are placed in flood plains, making
flood coverage a must.
Wind is also a specific danger for many manufactured
homes.
It is also typical for insurance companies to set
varying standard deductibles for different types of
damage. For example, if you reside in area that is prone
to tornados, then you will likely have to pay more for a
lower deductible for wind-related damage. It is
important to note that the higher your deductible is,
the less you are going to pay.
No matter what, you want to understand what your
deductible is going to be. You don't want any surprises
if you need to process a claim.
With a mobile home policy, any structures not attached
to your home -- like a shed, carport, fence or detached
garage are not going to be covered. Therefore, it is
probably a good idea to include them to the policy.
As your home gets older, your premium is going to get
higher. This is because the cost of replacing your home
with a newer model is going to be more expensive every
year.
But what about my personal belongings?
Typically 30-50% of the value of your home includes
content insurance. be certain that is enough to cover
your possession. Add extra if it is not.
Buy a policy that offers 'replacement value' coverage.
Therefore, when you lose something, no matter what it
is, your insurance company will pay you for what it
costs to replace the item with a newer version.
Otherwise, the policy will pay you what the depreciated
value is.
Provision should be included if your home is damaged and
you have live elsewhere during repair. It's typically
written into the policy for 10-20% of the dwelling
amount.
For example, if your purchase $30,000 worth of coverage
to protect the entire dwelling, you'd get up to $6,000
to cover your living expenses while your home was
repaired or replaced.
Another thing to find out about is how your carrier
handles temporary housing in the event that you need to
vacate your premises.
The inclusion of comprehensive liability is also a must.
This type of coverage will insure you in the event of
someone getting hurt on your property. In most cases,
you can increase the base amount that comes standard
with your policy, which does not cost much.
Preparing for a loss
Find out exactly how much cash you would receive for
your home and possession in the event of a total loss.
If you have replacement value insurance on your home for
more than it's worth, some companies will give you the
amount of your policy. However, some will only give you
what it would cost to replace your possession and home.
Therefore, do you due diligence and insure your home
only for what it is worth!
In the event of a total loss, find out exactly how they
calculate the loss? Make sure you get the answers in
writing and hold on to the paperwork with your policy.
Make a copy of all valuable papers and your policy. Keep
the copies in a safe place like a safety deposit box.
This way, you will have all of your paperwork handy in
the event of a total loss.
Moving your 'Mobile' homes
If you decide to relocate your mobile home, you are
going to need a special policy to cover while in
transit. Once you disconnect the utilities and take the
home off of its foundation, the regular policy become
null and void. A moving policy is good for 30 days and
will cost from $25 to $100, depending on the size of the
home.
Insurance Discounts
When shopping for homeowners or contents insurance,
don't forget to ask about discounts. Depending on the
carrier, you may be able to obtain a price break for a
shingle or pitched roof, basement or foundation,
skirting around the bottom of the home, smoke detectors
and fire extinguishers, or simply being 50 or older or
for owning a newer manufactured home. |
