The coverages you get on a mobile home or modular home are very similar to a traditional home insurance policy. For example;
Dwelling Coverage – This coverage is designed to insure the main structure of the mobile home.
Other structures – This is coverage for any structures detached from the mobile home such as a shed. This coverage is not automatic with all mobile home policies so be aware of that.
Personal Property – This coverage is designed to insure the mobile homeowners “stuff.”
Medical Payments – This coverage protects pays out for medical expenses from a non family member who is injured on the property or inside the mobile home.
Personal Liability Coverage – This covers bodily injury or property damage that you’ve become legally liable for.
Deductible – This is your out of pocket cost at the time of a loss.
Common Issues with Mobile Home Insurance
One common problem that we run into with mobile homes comes at the time of purchase. Insurance companies insure homes for their replacement cost. When purchasing a home, you purchase the home for its real estate value. Real estate value on mobile homes is often much more than the replacement cost.
Many carriers will not allow you to insure a mobile home for more than it’s replacement cost. This causes an issue because most lenders will want you to insure the home for the amount you are borrowing to purchase the home. This is usually close to the real estate value.
The solution to this problem is to find a carrier that will allow you to “over insure” the home to the amount of the loan. Here are Hutsenpiller Insurance – we have several carriers that allow you to insure homes this way.
We also have carriers that will allow you to bundle your auto insurance with your mobile home insurance to save money!
Contact us about mobile home insurance