Top 7 Frequently Asked Questions About Mobile Home Insurance
Throughout the years, I’ve been asked about manufactured home (or mobile home) insurance. There’s lingering confusion about the difference between mobile home insurance and standard home insurance policies, what is and isn’t covered, and why certain homes aren’t eligible for coverage. If you’re looking for insurance for your manufactured home, take a look below at some of the most frequently asked questions we get:
Q: What Does Mobile Home Insurance Cover?
The coverage you need for a mobile home is similar to a traditional home. The structure of the policy and amount of coverage needed will depend on the size and value of the home, whether you own the land the home is built on and the risks in the area, among other factors. A big factor to consider when purchasing insurance is the age of the home.
The basic types of coverage may include:
- Mobile Home Liability Coverage: Covers you if a visitor on your property gets injured due to your negligence, or if you damage someone else's property and you are taken to court
- Property damage: Covers any significant loss to your property that requires repair
- Personal property: Covers your belongings in case of burglary or theft, as well as damage or loss due to weather events or disasters like fires, tornadoes or falling objects
Q: What Should I Consider When Purchasing Mobile Home Insurance?
The biggest oversight by those purchasing a mobile home is the fact the home will depreciate over time. Many insurance companies have a calendar where the value of manufactured homes decline after a defined period of time called an Actual Cash Value policy. This means that although you are paying on an insurance policy, you may not have sufficient coverage in the future, as many insurance companies will only pay based on the current replacement cost of the mobile home less the depreciation based on the age of the home.
The difference between us and the other guys is that we pay replacement cost - so you won't lose money in the event of a loss.
How Does Mobile Home Insurance Differ From Standard Home Insurance?
Mobile home insurance, or manufactured home insurance, is a special type of homeowners policy designed to cover a different set of risks compared to traditional site-built homes. Manufactured homes are built in a factory with lighter materials, then transported to a site where they are typically tied down via ground anchors for stability. Because these homes are designed and built differently than traditional site-built homes, they need a special insurance policy that assumes the added risks that come with a strapped-down home vs. one built on a concrete foundation.
Q: Why Aren’t Wood Stoves Covered By Most Insurance Companies?
Most insurance companies look at wood stoves as a fire hazard. Additionally, if your mobile home is older, it’s possible the wood stove is no longer up to code, making it even riskier.
As a Farmer's agent, we're able to cover homes with wood stoves. There are some conditions that need to be met, but I'm happy to discuss these with you.
Q: I’m Making Improvements to My Mobile Home - Do I Need to Talk to My Agent?
Any time you make upgrades to your home, it’s critical to make sure you protect them! These improvements can leave you at risk for a huge loss, or even save you money! If you’re looking at remodeling, adding more rooms, purchasing more land, or adding more energy-efficient upgrades, it’s worth a conversation with your agent to make sure you’re not at risk for a loss. You’ve worked hard to earn these beautiful new upgrades - keep your investments safe and risks low.
Q: What Discounts Are Available for Mobile Homes in Prescott?
If you live in a mobile park, you’re eligible for a discount! There are several ways we can help save you money on a policy that protects you in the event of a loss. Come in and talk to me, and I promise to give you an honest review.
Q: Does Mobile Home Insurance Cover Wildfires?
This question came up when the Goodwin Fire hit this summer. Many insurance policies cover disasters like wildfires, but in high risk areas such as drought areas or densely forested regions, some policies exclude this coverage. Always check to see that your policy does not specifically exclude wildfire risk. If you are covered, then the policy can kick in if you have to evacuate. The coverage may pay for reasonable lodging, meal and travel costs during the evacuation period. It may also provide coverage if your home suffers damage from a wildfire.
Ready to chat about protecting your mobile home? Give me a call. I’ll be happy to answer any questions you have.