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.
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.
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.
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).
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.
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.
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.
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.
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.
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.
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.
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 email@example.com.
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