Before you buy mobile home insurance, you need to have a firm grasp of understanding the basic coverages. In this article, I will explain the 7 basic coverages of a mobile home policy. I will also answer some FAQ's about mobile home insurance at the end.
7 Basic Coverages of a Mobile Home Policy
1. Dwelling coverage - This covers your mobile home and any permanently attached structures. This is the main coverage on the policy. When you're selecting a value, only include the value of your home. Do not include the value of land. Depending on the age of your mobile home, dwelling coverage can be insured on either a replacement cost or actual cash value basis. You should insure dwelling coverage with an amount of insurance at least equal to the market value of the home including all attached additions.
2. Other structures coverage - This provides coverage for unattached structure's which includes things like hot tubs, swimming pools, gazebos, utility sheds, docks, etc. Basically,any structure that is not permanent permanently attached to the home should be included in the value of other structures coverage.
3. Personal property coverage - This is coverage for losses to household items. Most companies Insure personal property coverage on an actual cash value basis. But some companies will let you upgrade to placement cost coverage on personal property for an additional premium.
4. Personal liability coverage - This covers you if someone else gets hurt or has property damage due to your negligence. This also includes legal expenses for your defense. Examples of this would be: if your dog bit somebody, if someone slipped on ice and fell on your property, the neighbors child gets injured playing in your backyard... things like that. Keep in mind that most companies have some key exclusions for this coverage. For example, most companies will not cover injuries resulting from the use of motor vehicles. And also, some company severely limit the amount of liability coverage offered if you have a swimming pool.
5. Medical payments coverage - Pays reasonable medical expenses for accidents on your property that caused injury to someone else. These payments are usually maxed out at low levels (usually $500-1000). They are basically designed as a settlement attempt to try to make someone "go away" that may otherwise file a substantially higher claim/lawsuit against you.
6. Damage to property of others coverage - Covers property that's owned by someone else that you damage. This coverage is usually offered at low amounts as well.
7. Additional living expense coverage - If you have a covered loss to your mobile home that makes it unlivable. This coverage will pay for additional living expenses such as hotel, food etc. during the time that you're unable to live in your mobile home.
I've never bought mobile home insurance before. Where do I start?
Finding affordable mobile home insurance is not as difficult as you may think. The key to getting a great rate is to shop around with different mobile home insurance companies. The more companies you quote with, the better chance you have at getting a lower rate. The most efficient way to do this is to get a quote with an independent agent, and let them do the shopping around for you.
What types of mobile homes can be insured?
Any mobile home, manufactured home, modular home, or fifth wheel campers that are used as a permanent residence, and has permanently attached features to it.
Can I insure my mobile home on a replacement cost basis?
With most companies (not all), a mobile home 10 years or newer can be insured on a replacement cost basis. As long as you keep continuous coverage, most companies will allow you to insure the home up until the 16th year. At that time, the coverage reverts to actual cash value basis.
I am financing my mobile home and need to keep insurance on it. How much coverage do I need?
Your bank will tell you the minimum coverage you need to carry. But you need to ask yourself, is that enough coverage? In the event of a total loss, will this amount be enough to start from scratch? In many cases it is not, and you need to raise coverage accordingly.
I cannot find mobile home insurance because of previous claims I have filed. Can you help me?
In most cases, Yes. Some of the companies I carry accept mobile home insurance for homes that other companies will not insure. I can not insure every mobile home, but I can try with some companies that are a little more forgiving about claims.
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Understanding the Basics of an Ohio Mobile Home Insurance Policy