South Carolina's oldest insurance agency
Mobile Home Insurance...
If you own a mobile home, you need insurance protection against various types of loss including:
- Damage to your home from fire, windstorm, or other natural disasters.
- Theft of personal property.
- Legal liability for bodily injury or property damage, not auto-related, arising out of the use of your premises or your negligence or that of members of your family.
Mobile home insurance provides coverage similar to a regular homeowner’s policy covering a dwelling but is tailored to meet the specific needs of the mobile homeowner. Generally, it costs more to insure a mobile home than a conventional house because of the differences in construction and the mobile home’s greater susceptibility to wind damage. Newer mobile homes have better wind ratings that help keep the cost down.
Types of Insurance
The mobile homeowner’s policy is a package of insurance written specifically for mobile homes and includes coverage on the mobile home, personal property in the mobile home, any other structures on the premises, and loss of use coverage. Personal liability protection and medical payments coverage is included. A mobile homeowner’s policy can be either a named peril or a comprehensive policy.
A named peril policy covers losses to your mobile home and contents that occur due to the perils named in the policy, usually fire, lightning, explosion, transportation, theft, windstorm, and riot or civil commotion.
A comprehensive policy covers losses from damage to your property against all perils subject to the exclusions found in the policy. In addition, the cause of the damage must be direct, sudden, and accidental.
A fire and extended coverage policy (or rental mobile home policy) is usually issued for a mobile home that is not owner occupied. These policies are almost always named peril policies as described above. The basic policy provides coverage only on the mobile home itself. This policy does not automatically cover theft, personal liability, the contents of your mobile home, or other extra coverages. However, you can purchase additional insurance to include these coverages.
Basic Coverages
Personal property coverage protects you if any of your possessions are stolen from your mobile home or if they are destroyed or damaged by another covered peril. A list of your personal property and its value will be helpful if you make a claim.
Personal liability coverage protects you against a claim or lawsuit resulting from bodily injury or property damage to others. This applies to non-auto accidents on and off your property if the injury or damage is caused by the negligence of you or a member of your family. Remember, to be liable, you must be negligent. If your pet dog bites someone, this coverage would apply IF the policy does not contain an animal exclusion of some kind. Some policies also exclude liabilities resulting from use of a trampoline or swimming pool.
Medical payments coverage pays medical expenses for injuries to other people that occur on your property or elsewhere if the injury was caused by you, your pet, or a family member. Payment is made regardless of fault.
Replacement Cost vs. Actual Cash Value
Before buying mobile home insurance, you need to understand the difference between “replacement cost” and “actual cash value.” Replacement cost is the amount it would take to replace or rebuild or repair damages with materials of similar kind and quality, without deducting for depreciation up to your policy limits. Actual cash value is the value of your property when it is damaged or destroyed. In other words, actual cash value is the amount you paid for the mobile home or your furniture, etc. less depreciation.
Most mobile home policies are written on an Actual Cash Value (ACV) basis and thus the depreciation of your mobile home and its contents is taken into consideration at the time of a loss. This is usually figured by taking the replacement cost and subtracting depreciation. For example, a chair that costs $500 to replace may have a reasonable “life” of 20 years. If it is destroyed after 10 years, its actual cash value will be much less than $500, probably about $250. The condition of your chair would also affect your insurance payment.
How Much Mobile Home Insurance Do You Need?
In deciding how much coverage to have on your mobile home or on the contents, you should consider:
- The amount you paid for the mobile home or contents. If you have a mortgage on your mobile home, the mortgagee will require you to insure the mobile home for at least the amount of the loan or its replacement value whichever is less.
- Mobile homes are much like a vehicle in that the mobile home has a “book value” that is used by the insurance company to determine its value. In most cases, there is no need to insure the home for more than its book value. Exceptions would be if the policy provides replacement cost coverage or the insurance company is one that will provide additional insurance above the book value.
- The contents limit in the policy is usually a percent of the amount of insurance on the mobile home, usually 40% or 50%. You should determine if this limit is sufficient and, if not, inquire if additional contents coverage may be purchased.
- What property could be damaged or stolen, and how much would it cost to replace it? Be sure to include yard maintenance equipment that is stored on the premises.
- If you were sued by someone who suffered injuries because of your negligence, how would you pay the legal costs and possible damage awards? You probably should select the highest liability limit offered by the insurance company as the liability premium is an insignificant amount of the total policy premium.
Some Tips on Loss Prevention
Taking steps to prevent losses is important.
- Install smoke and heat detectors near sleeping areas and kitchen.
- Keep your mobile home clear of accumulated trash, oily rags, and combustible materials.
- Check lamps, lamp cords, and light switches to make sure there is no faulty wiring.
- Practice home fire drills. Make sure everyone (especially children) knows what to do in case of fire.
- Keep matches away from children. Make sure that smokers do not smoke in bed.
- Install adequate locks on your mobile home and take other precautions such as not letting newspapers accumulate in your absence.
- Consider installing a central station fire and burglar alarm system. Most companies give a small discount on the premium if a working central alarm is present.
- Make sure all handrails and steps are secure and do not present a fall hazard.
Flood Insurance
Most mobile home insurance policies do not cover flood losses. Some mobile home parks are located in a “flood plain” as defined by the federal government. If your community is a participant in the National Flood Insurance Program (NFIP), you are eligible for federally sponsored flood insurance coverage for your mobile home.
Contact your C. T. Lowndes & Company insurance agent to learn more about your eligibility for flood insurance protection. Your agent can determine in what flood zone your home is located.
For general information on the flood insurance program, you may visit the NFIP website:
Protecting Your Mobile Home
Review your insurance annually.
Update the list of your home’s contents and their value annually. Take photos or make a video showing the furniture, etc. Make it a habit to keep receipts of your more expensive purchases. Keep the list, receipts, photos, etc. in a fire-proof box, at your work place, or with a relative or friend off the premises. In the event of a loss, you will be required to provide the insurance company with a list of all items damaged or destroyed.
Make sure your mobile home is equipped with a smoke or heat detector and test it monthly. Keep fresh batteries on hand.
Protect your property. Keep your property in good repair. When installing awnings or air conditioners, be sure they are secure. The more damage resistant you make your mobile home; the more likely you are to get the most favorable rates when buying insurance protection
Make sure any additions to the mobile home are added to your insurance policy. Check with your agent to be sure that adjacent sheds, skirting, add on rooms, and any other improvements you make are covered by your policy.
If your mobile home is to be moved by a common carrier, you
should be sure that the carrier provides adequate protection in the
event of a loss. The common carrier’s protection may not be enough
and you may need to buy more. Contact your C. T. Lowndes & Company
insurance agent before you move your mobile home to another
location.
Please call your agent at C. T. Lowndes & Company today for more information or to inquire about a quote!!
