Providing Home Insurance for Manufactured Properties
Home insurance for manufactured homes, as most brokers fully understand, works in much the same way as a standard homeowners policy. Mobile homes and other manufactured properties are part of an underserved market that is in need of representation for the hundreds of thousands of people living in areas where insurance coverage of this type is often sparse.
Three types of coverage are included in most standard policies, including general property coverage that insures the dwelling against damages, other than flood, and is based on the value of the structure itself, and not the land. Personal property protection covers most losses involving damage to personal belongings. Finally, liability coverage protects you and family members in the event someone is injured while on your property.
Make sure the policy provides the needed coverage
It would probably be wise to invest in a policy that includes a “loss of use” section that reimburses the homeowner for expenses incurred if the dwelling becomes uninhabitable. Costs for hotel stays, food, clothing, and boarding of pets are often included in this coverage. Some policies will also pay a negotiated amount for the costs associated with moving the manufactured home when required by the insuring company due to a loss, referred to as an emergency removal section, available in many areas.
Naturally, policy needs will vary from one situation to the next, and what is covered (or not covered) does have an impact on premiums. For example, if the dwelling is in area that is considered to have a high crime rate, in an area that floods frequently, or is frequently threatened by tornadoes or hurricanes, your clients can expect premiums to be higher based on those conditions.
While these are uncontrollable factors, here’s an insurance tip for owners of manufactured homes that can help offset or at least mitigate those factors somewhat. By properly insulating the structure one can help to reduce the possibility of pipes freezing and bursting and causing water damage. It also lowers the costs associated with heating and cooling, thereby freeing up additional funds that can help to pay the premiums.
As with conventional homeowners insurance, home insurance for manufactured homes can have premiums that are also affected by other factors, such as the breed of dog your client has, owning a hot tub or trampoline, or installing decks and patios. Be sure to go over the policy with your clients carefully so they understand any exclusions and limitations, and can better determine if the policy meets their current needs.