Like traditional home owners insurance, purchasing a mobile home insurance policy is a necessary but often daunting task. Before signing on the dotted line here are some facts and tips you need to know to make the best possible choice for your needs.
- Mobile home insurance, in many ways, is comparable to a traditional home owners policy. Both types of insurance cover damage to the structure due to fire, storms, vandalism and floods caused by plumbing problems. Both types of policies include coverage for personal belongings, although it is recommended that any homeowner insure more valuable property separately. Liability is covered in the unfortunate event that someone is injured while visiting your home. Attached and detached structures on the property are often included in such policies as well.
- Despite similarities, mobile homes differ from site-built homes in a number of ways. Since mobile homes are, well, mobile, it is important to insure the home against accidents and damages that may occur during transportation. Mobile homes, like automobiles, depreciate over time. As such, mobile home insurance policies – in the event the home is completely destroyed – offer the choice of full replacement coverage that allows you to purchase a new mobile home, or actual cash value coverage which pays out cash based on the depreciated value of your home.
- Make sure you read the fine print in any policy before you sign. Unique to the world of mobile home insurance is the fact that many insurance companies define “mobile” and “manufactured” differently. These differences can greatly alter your actual coverage. Also, because of the depreciative nature of mobile homes, many policies will greatly limit coverage if the home is older. It probably goes without saying that, of course, the definition of “older” varies from one company to the next. Buyers also need to note if – and to what extent – attached and detached property is covered.
- There are a large number of companies offering mobile home insurance, so shop around and take advantage of discounts. Senior discounts and discounts for multiple coverage (car and home, for example) are the most common. Many insurance companies also offer a discount if you are the original owner of the mobile home. Discounts are often available if the home was built using certain fire-resistant materials and if you have an activated and continuously monitored security system.
Armed with these facts and tips, you should have no problem finding the perfect mobile home insurance policy for your needs.
