Did you know that mobile homes make up 3% of all housing in urban areas and 15% of housing in rural areas? This makes up quite a substantial portion of housing for the U.S. population, which is why insurance companies have special policies for mobile homes. Unlike homeowner’s insurance, purchasing mobile home insurance is not required by law, however, mortgage companies and some mobile home communities might require owners to be covered by a policy. In this article, we are going to discuss why you should consider purchasing mobile home insurance.
What is the difference between a mobile home and a manufactured home?
Both mobile homes and manufactured homes are built in factories; the main difference is that any home constructed before June 15, 1976 is considered a mobile home and anything built after this date is called a manufactured home. The safety standards for both mobile and manufactured homes have been improved since 1976.
What does mobile home insurance cover?
Mobile home insurance is actually very similar to homeowner’s insurance. You can adjust your policy and add features that would best protect your home. Basic insurance covers the costs of physical damage resulting from certain natural disasters or vandalism. It’s important to note though, that damage caused by floods, earthquakes, and wildfires are not included in basic insurance. If you live in a high-risk zone, you should consider purchasing additional coverage.
You would also be covered for personal liability, meaning you will not have to pay out of pocket if someone living in your home damages someone else’s property or if a guest is injured on yours. With mobile home insurance, you would be able to pay for medical expenses, lost wages, or legal fees.
What is a named perils insurance policy?
This is a basic form of insurance that only provides limited coverage for specific losses as agreed upon, such as theft or fire. While it is less expensive, it might not protect you enough from other hazards that are not listed in the policy. For example, if your mobile home is damaged from an earthquake, you might be responsible for the costly repairs. If you were to purchase earthquake insurance, the premiums would cost less than actually paying to rebuild your home and replace your belongings should you experience damage from an earthquake.
Why should I purchase mobile home insurance?
First of all, it’s important to follow the regulations set by mortgage companies and your mobile home community. If they require owners to have insurance, make sure you purchase a policy that is appropriate for you and your family.
Secondly, you will want to take into consideration that lower premiums could lead to higher repair and replacement costs. By purchasing comprehensive coverage that pays for various weather-related damage and personal liability, you will actually save money in the long run.
There are multiple factors that go into deciding which policy will provide the right coverage for your mobile home. For further information, contact Superior Insurance & Auto Tags today!
