Sometimes mobile homes get a bad rap. Tornado movies probably have a lot to do with that. In reality, though, moving into a mobile home can actually be an excellent way to achieve homeownership quicker and cheaper than waiting to save up money to buy a stick-built home.
Purchasing a mobile or manufactured home isn’t like buying a new car or RV; it’s a home. Therefore there are some additional purchases you need to make to ensure that you protect your home from damage and loss.
The most important first step is securing home insurance. Though a mobile home is a home, mobile home insurance coverage operates a little differently than traditional home insurance so you need to make sure that you secure the correct policy. These policies are different because the value of a mobile home differs from a standard home and therefore costs and payouts operate differently.
So if you live in a mobile home, you need mobile home or manufactured home insurance and you should know what does mobile home insurance covers.
What’s the difference between mobile, manufactured, and modular homes?
Before diving into coverages, it’s important to get a few terms straight. The terms “mobile, manufactured, and modular” are frequently used interchangeably, but they do have different meanings. All three types are factory-built homes but they carry a few differences which is why they have different names. According to the Department of Housing and Urban Development (HUD), mobile homes are any factory-built homes built before June 15, 1976. Manufactured homes are those built after this date. Modular homes are built a little differently and are regulated by local building codes.
But whether you live in a mobile, manufactured, or modular home, you likely need mobile home insurance.
What basic coverages are included in mobile home insurance?
Standard mobile home insurance coverage typically includes a few basic coverages. These include coverage for your home and personal property, liabilities, and additional expenses.
Property Damage
Accidental damage to your home and structure is typically covered by your mobile home insurance policy. This includes damage due to weather events, vandalism, and malfunction of home systems such as water heaters and some appliances. Your personal property coverage is set by you and determined by the amount of items you need to insure. This may include furniture, clothing, electronics, jewelry, housewares, and more. Separate policy add-ons may be needed for expensive items such as jewelry and artwork. It is wise to review your coverage limits annually to ensure that all of your property and belongings remain adequately insured.
Liability
Incidents that happen on your property are your responsibility. Likewise, accidents caused by your children or pets are also your responsibility to repair or replace. To ensure that you do not have to pay for accidents out of pocket, your mobile home insurance will carry liability insurance to cover these events. This liability coverage insures accidents that occur on your own property or at the property of another that is caused by you, your children, or an animal that you own.
Medical Expenses
If a guest of yours or a hired workman gets hurt on your property, their health insurance may cover the cost of their medical bills. But if not, it is your responsibility to pay for the medical expenses that are incurred because of an incident on your property. These costs can add up quickly. To account for this, your mobile home insurance policy will cover medical expenses for accidents that occur on your property for those who do not live there. It is important to note that this coverage likely does not cover residents of the home.
Living Expenses
If your home is damaged and you are displaced while waiting for repairs or replacement, your mobile home insurance policy will not only cover the repairs for your property but will also pay for your new additional living expenses. This may include hotel or rental costs, food stipends, and more. This is sometimes referred to as “loss of use” coverage.
What perils are covered by mobile home insurance?
Most accidental damage to your home will be covered by your mobile home insurance policy. These problems are referred to as “perils.” These perils often include damages caused by lightning, fire and smoke, hail or snow, wind, explosions, falling objects, wild animals, and vandalism. In most cases, frozen pipe bursts are covered as long as neglect wasn’t involved.
What does mobile home insurance not cover?
Not all damage that occurs to your home is covered by your mobile home insurance. Damage that is typically not covered includes damage caused by neglect or incorrect repair, damage caused by military action or civil authority, and any intentional damage or damage that is a result of action on another’s property such as sewer backup or power failure. These types of damage may require additional coverage.
Damage not covered that is most often a surprise to homeowners is flood and earthquake damage. To protect your home against these natural disasters, you must purchase separate flood insurance or earthquake insurance. Additionally, mold or fungi damage is not a covered peril in itself, but is only covered if caused by an already covered peril.
How to Secure Mobile Home Insurance
At Gebhardt Insurance Group, our expert agents take special care to explain the terms of your policy, walk you through the coverages, and ensure that you understand what does mobile home insurance covers and does not have.
We never want a client to be blindsided by an accident. Call us today to secure peace of mind in knowing that you are covered if an accident occurs involving your home or property.