The ranks of mobile home owners are growing fast. The Census Bureau reported an 84 percent increase from 1970 to 1980. And many insurers offer special coverage that provides basically the same insurance as the standard homeowners policy.

Other companies offer policies whose all-risk property protection even covers earthquakes and floods. Because of the high vulnerability of mobile homes to severe windstorms, insurance doesn’t cover wind damage in some coastal areas that are especially susceptible to hurricanes. But you can get that coverage separately, through beach and windstorm plans operated by the private insurance industry in several states. Many states or communities have tie-down regulations requiring that mobile homes be firmly anchored in place. Insurers often impose the same, and sometimes even stricter, requirements as a condition if you want to be covered. Always obey the public tie-down regulations or you can lose your coverage.

People who live in mobile homes are kind of a cross between the traditional homeowners and the renter. Like a tenant, the mobile home owner usually doesn’t own the land upon which his or her mobile home sits. However, like the owner of a house, the owner of a mobile home does own his or her physical abode. Needless to say, the insurance industry sells mobile home insurance. They do so either by creating a mobile home policy or by selling a traditional homeowner’s policy modified by endorsement to fit the unique needs of the mobile home owner. Whichever way it goes, the following areas of coverage must be met.

Like a house, a mobile home has value. Your mobile home insurance should have liability amounts sufficient to fully replace or repair the home should it be damaged by the elements than a house is. (Remember the tale of the three little pigs? Well, there were actually four. One owned a mobile home).

A distinctive feature of mobile home policies is that they cover parts, equipment and accessories - even the furniture - that you buy with the unit. While it’s in your mobile home, your other personal property usually is covered for 50 percent of the amount of insurance on the dwelling.

Generally, other property coverages are similar to those offered in the standard homeowners policy, although additional living expenses are reimbursed on a dollar, rather than a percentage, basis. The allowance, subject to a specified time limit, usually ranges from $10 to $15 a day. And if you feel you need the added protection, you can increase these various coverages.

If you plan to move your mobile home, there are dangers that you should insure against. For example, what if the home is in an accident? It happens. Thus, if you are going to move your mobile home, purchase an endorsement that will cover you against such mishaps. The insurance on your mobile home doesn’t travel with you, because of the additional hazards to which the unit is exposed while it’s on the highways.

If you own a mobile home and see that a large forest fire is heading your way, you can move your home to a safe locale until the peril passes. The basic policy provides for $500 for this kind of expense. However, it usually costs far more than that to move a mobile home. If you wish, you can add to the $500 coverage by purchasing an endorsement in an amount more likely to cover the cost of moving out of harm’s way and returning once the danger has passed.

Mobile homes don’t cost as much as houses, but they are not cheap. Few purchasers pay cash. For those who buy on credit, the mobile home will be the security for the loan in the same way that a mortgage is for the purchase of a house.

This creates a problem for the lender: you can move the mobile home and thus the piece of property that “secures” the loan. For this reason, many lenders require mobile home purchasers to buy insurance that protects the lender should the purchaser default on the loan and abscond with the mobile home. The lien holder protection policy is offered by way of an endorsement that also insures the lender from risk of loss during delivery.

Please note that the precise coverage afforded is subject to the terms, conditions, and exclusions of the policy as issued. This explanation is intended only as a guideline. This information is not intended to be considered investment, tax or legal advice. It is provided, for your education only. All terms and coverage are defined solely by your policy.

For more details, please call a PaulBalep representative toll-free 1-800-964-8614 to receive a free, no-obligation quote. Like so many satisfied clients, we think you’ll be happy you did. And to set up a meeting to discuss additional insurance and financial goals: Visit us online at www.paulbalep.com, or e-mail us at info@paulbalep.com.

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