Mobile home insurance is not difficult to find, but you have to make sure you read the fine print to know what you’re buying.
Shopping for mobile home insurance is slightly different than shopping for insurance on a stationary home. Although the coverages are similar, there are a few differences. It pays to be aware of the types of coverage offered by the different insurance companies. Be sure to purchase from the company that adequately fits your insurance needs. Below are a few things to consider when buying mobile home insurance:
- Definition of mobile home: Each company’s definition of a mobile home varies. According to FEMA a mobile home is “A structure, transportable in one or more sections, which is built on a permanent chassis and is designed for use with or without a permanent foundation when attached to the required utilities.” While other insurance companies definition includes the home, the attached structures such as a built on deck or porch, and surrounding structures such as garages or storage sheds. Make sure you review the definition of a mobile home so you know what you will be reimbursed for in the event of a loss.
- Named peril or all risk coverage: Mobile home insurance policies may be purchased on a named peril basis. What that means is the policy will cover losses that occur as a result of the perils named on the policy. Some named perils are fire, lightening and ice/snow storm (check your policy). Named peril policies are cheaper than all risk, but they are also more restrictive. All risk polices are comprehensive. Under an all risk mobile home policy, the insurance company will pay for all losses except for those that are excluded (discuss the exclusions with your agent). It costs more, but is worth the money.
- Trip Collision coverage: Unlike stationary homes, mobile homes have the ability to be moved from one location to another. If there is a possibility that you will be moving your home, be sure to discuss this coverage with your agent. It’s better to have it and not use it than to need it and not have it.
- Valuation: There are two types of valuation, replacement cost and actual cash value (ACV). Replacement cost means that you will get the cost to replace your mobile home in the event it is destroyed (subject to policy limit). Actual cash value is the replacement cost less depreciation. Because of the nature of a mobile home, some companies, such as the Kentucky Farm Bureau, may offer replacement cost for up to 5 years after the manufacture of the mobile home. After that period of time, they will only offer actual cash value. This is something you should discuss with your insurance agent.
- Emergency Removal: Insurance companies will pay a certain amount towards the cost to remove your mobile home in the event of a covered loss. For example, moving your home from a flooded location to preserve it.
- Shop Around: Always get a quote from more than one insurance company when seeking mobile home insurance. While Formemost Insurance Group and Geico offer online coverage quotations, be aware, that states such as Florida, Hawaii and Texas pose more of an underwriting challenge and will require that you speak to an insurance agent before they can offer a mobile home policy.