More and more people are choosing to live in mobile homes. You might think a home is a home and insurance is insurance, but there are a few differences in how a house and insurance relate to each other.
If you have a mobile home, your insurance needs will differ from those in a traditional home. We’ll explain specific considerations for mobile home insurance, its cost, and how to find the best companies so that you are empowered to make the best choice concerning your coverage.
Mobile Home Insurance Coverage
Besides having slightly higher premiums than traditional home insurance, and the issues with older mobile homes that we’ll discuss in the next section, the insurance coverage is fairly similar to standard home insurance.
A mobile home insurance policy will have coverage for the following types of claims:
- Contents – This type of coverage protects the value of your personal property like furniture, clothes, electronics, and almost everything else you have in your home.
- Structure – This portion of your policy will pay for damage done to your home’s structure.
- Liability – Liability insurance pays for injury done to others on your property. For example, if someone slips on the ice in front of your house, this type of coverage will pay for their medical bills.
If you live in a floodplain or earthquake-prone area, you’ll need a separate flood or earthquake insurance policy. And if you live in a region especially prone to other natural disasters like hurricanes, you may find it challenging to find a home policy that covers damage from those weather events.
You should make sure that the policy you choose covers the replacement cost of your contents. If it only covers the depreciated value, you’ll have difficulty starting over.
For example, if you bought a couch 10 years ago, the insurance company may say its value is $100, but if you have to replace it, you’ll probably have a hard time finding a couch at that price. Replacement value coverage will cover the cost of buying a similar new couch.
If you have a detached garage, you might need an “other structures” policy, and if you create an outdoor living space, you may need to ask your insurer how to make sure your investment in that space is protected.
Insurance premiums are based on the risk the coverage presents to the insurance company. Unfortunately, mobile homes are more prone to damage than traditional homes, and higher risk is associated with higher insurance premiums.
If your mobile home was built before 1974, you might not be able to find an insurance company to cover your home. Before that year, mobile home manufacturers did not have to follow building codes, so most insurance companies are unwilling to assume the risk of the unknown. And if you can find an insurer, your coverage will be quite expensive.
There is some good news, though, and that is that you can usually apply discounts to your premiums to help you save money on home insurance.
If you purchase your mobile home and auto insurance from the same provider, you’ll usually be eligible for a bundling discount. It’s one of the best discounts available, and even if you decide not to purchase home and auto insurance from the same company, you should at least compare quotes with that option.
You should also look into other discounts like claims-free, loyalty, and military. Usually, you can stack discounts and apply several to the same policy. You might even be able to save 50% on premiums with discounts.
Comparing quotes is one of the best ways to narrow down a list of potential mobile home insurers. However, keep in mind that some companies won’t give you a quote online, so you’ll have to call and get one.
Once you pick the top three or four companies with the best rates, you’ll need to look into their financial standing. Then, if you ever need to make a claim, you’ll need an insurance provider that can pay that claim.
Another aspect to research about insurance companies is their customer service. You can check out J.D. Power’s annual insurance claims satisfaction survey to see how your top choices compare. Even though you hope never to make a claim, if you have to, you’ll appreciate working with a company that values its customers.
If you have a mobile home, insurance is as essential as if you have a traditional home. If your mobile home is financed, your lender will require home insurance. And even if you own your home free and clear, you still need insurance coverage. It may not be required, but it’s what you need to help you financially recover if the unexpected happens.
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