The ABC’s of Mobile Home Insurance

By Catherine Powell

Image courtesy Public Domain Pictures

Many mobile home owners think that insuring their property is identical to homeowner’s insurance.  I like to point out the fact that while the two are similar, there are a number of subtle differences that they need to note before purchasing insurance.  To make life simple for all you mobile and modular home owners out there, this week I’ll cover the ABC’s of mobile home insurance.

      A.     Any time your home is built in a factory as opposed to on-site, it is considered either a mobile home or a modular home.  They are both then transported to the building site on a flatbed truck and rolled or jacked up onto their foundation.  This gives them both one advantage over a traditional home, since they can be moved to another location at the owner’s discretion. They also take far less time to assemble on-site than does a traditional house.

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      B.     Both mobile and modular homes can be insured for physical damage, property coverage, and personal liability.  The difference is that some insurers require modular homes to be insured under a traditional homeowner’s policy.  (This can make them a bit more expensive to insure than a mobile home.)

     

      C.     Costs to insure a mobile home can run anywhere from $300-$1,300 per year, depending on the size, replacement cost, coverage options, deductible and the location of the mobile home. 

      D.    Damage coverage is limited to the property contained on the lot, excluding that caused by flooding, which can be mitigated by purchasing a flood insurance policy.  Mobile home insurance does not cover any damage sustained during transport.

      E.     Every manufactured home insurance policy isn’t created equal.  One of the biggest differences is in how your mobile home is valued.  While the actual cash value of your home might be $100,000 at the time of purchase, a mobile home with an estimated value of 30-years would lose half it’s cash value in 15-years.  While it is possible and even preferable to cover the replacement cost of your mobile home, this will also add to the cost of the policy itself. 

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      F.     Florida mobile homes are more subject to flooding since the Sunshine State gets more storms and hurricanes than any other state in the Union.  This means if you own a mobile home in Florida, it’s a good idea to add flood insurance if you don’t want to come home after a storm to find your home has washed away.

      G.    Got questions about mobile home coverage?  Then you need to talk to an insurance agency that specializes in mobile home carriers.  This will be especially important if you ever file a claim, since some insurers work with specialized mobile home insurance adjusters and contractors while others don’t.

      H.    How long will it take to get your mobile home insured?  While the majority of the insurance will take effect the moment your home is firmly attached to its foundation, the flood portion of the policy takes an additional 30-days to take effect.  This means if you want your mobile home to be fully covered before hurricane season starts, you need to have your unit on-site no later than May 1.

I.       Is a mobile home considered real estate or personal property?  That depends on a number of factors, including who owns the home and the land upon which it sits.  If the mobile home sits on rented property, it is considered personal property as opposed to real estate. To be considered real estate, a mobile home must also be fixed to a permanent foundation. 

     

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J.      Just how much coverage do you need?  That depends on how much of your home’s property you want the policy to take into account.  Does your home have a porch, deck or carport?  How about a fence?  You’ll probably also want to insure your appliances as well as your personal belongings, won’t you?  An experienced mobile home insurance agent can help you decide on the level of coverage that best suits your needs.

      K.     Keeping the costs from spiraling out of control is one thing that’s top of mind to all mobile home owners.  That being said, since mobile homes are more prone to damage or outright destruction than traditional houses, the last thing you want to do is purchase a policy that leaves you woefully ill-equipped to deal with damage down the road.

      L.     Liability coverage helps mobile home owners deal with bodily injury or property damage caused on their property.  It also covers any legal fees and hospital bills that result from lawsuits brought by visitors to their home.  If a guest should slip and fall in your home or get bitten by your dog, the resulting legal fees, medical bills and damages levied by the court could devastate you financially if you have insufficient liability coverage.

      M.   Make sure you understand all the limitations of your policy and how it relates to you.  For a few dollars per month more you can add an umbrella policy that will provide additional liability coverage that could keep you from losing your home should you get hit with a huge settlement following a lawsuit.

      N.    No policy is worth the paper it’s written on if it fails to protect your assets adequately in time of need or is written with an insurer that has a tendency to drag its feet when it comes to having any damage promptly assessed and paid promptly to policyholders.  This is another reason to seek out an insurance agency that specializes in mobile home coverage.

Catherine Powell is the owner of A Plus All Florida, Insurance in Orange Park, Florida.  To find out more about saving money on your mobile home insurance, check out her website at http://mobilehomeinsuranceorangeparkfl.com/