Mobile Home Insurance: Coverages, Programs & Applications
April 22, 2020
- Last edition
April 29, 2020
by Larry Neilson
A mobile home, like other manufactured homes, is a unique asset and therefore has some unique insurance and liability issues to consider. Because mobile homes lack a foundation and can be moved from place to place, they are treated differently by insurance companies. The typical size of a mobile home also carries its own set of challenges.
Mobile Home Coverages
It is important to know exactly what kind of insurance is needed to handle these special liabilities. Homeowner’s insurance will cover many regular costs for a mobile home, but there are a few special kinds of coverage that should be considered.
Travel & Installation Costs
Most houses do not need to be moved or installed – they are built on the spot and stay there. This is unique to mobile homes, and so a standard insurance policy will not take effect until installation is complete. A good mobile home policy should cover travel and installation.
Liability insurance covers any damage to property or individual that takes place within a mobile home. Dog bites are an example that is a common occurrence. These liabilities will not be covered under a normal homeowner’s policy (nor will the attendant court costs!) so a special policy is needed.
Replacement Cost Coverage
Mobile homes depreciate in value quickly and considerably, so figuring out how much will be paid out in the event of destruction is important. The replacement cost will be set ahead of time, probably much lower than the purchase price, but more than the market value after several years in order to cover the actual loss.
Things like sheds and carports are not covered under a homeowner’s policy when it comes to mobile homes. Since the homeowner may not own the land on which a mobile home rests, property like that needs to be covered under a mobile home policy.
Mobile Home Program Examples
A mobile or manufactured home policy should be unique to the home it covers, but there are several common programs that should be considered.
A general liability policy will cover any injuries or damages that take place in the home. This extends also to swimming pools or trampolines or things like that. There are umbrella policies that cover just about anything that happens that could result in a lawsuit or claim.
Physical Structure & Contents
The contents of a mobile home may not be included in a standard homeowner’s policy, so this should be covered under a special program. This can also extend to the siding of the home, not always easy to replace.
Often, floods and earthquakes and the like are not covered under a standard policy. Water damage is also in its own category. Be sure to discuss with a knowledgeable agent everything that is needed.
A mobile home insurance application will try to determine the exact nature of the property. For example, is it a primary residence or a vacation home? Is it permanent or does it move from time to time? Any previous damage must be disclosed, as well as all needed coverage. The underwriters want to have both eyes open when covering a mobile home.
Notable Mobile Home Insurance Program Administrators
Choosing a great agent who knows the market is key. Be sure to choose a reputable source for something so important. For example, Arrowhead General Insurance Agency has specific programs for manufactured housing and can navigate the markets with skill.