Agent, Cornerstone Associates Insurance Services, Inc., Lincoln, CA
Mobile Home Insurance is the same concept as homeowner's insurance for site-built homes; however, the coverage is usually only provided by specialty companies for various reasons, which I will discuss infra.
Mobile Home Insurance typically mirrors a homeowner's policy in the fact that it has coverage for the dwelling, other structures, personal property, loss of use, personal/premises liability, and all the optional coverages such as identity theft, personal injury, etc.
Mobile Home insurance is usually only provided by specialty companies such as Foremost, American Modern, American Reliable, Aegis, etc. Mobile homes present a unique loss exposure. Site-built homes are usually constructed much better than mobiles/manufactured homes, and site-built homes have a variety of fire-resistant materials used in them. Mobile homes, on the other hand, typically dry up fairly quickly; and it is not unusual to see a small fire cause a total loss in a mobile over 15 years old, as the mobile has then become a tinderbox.
Mobiles also can vary on the foundation, depending on local building codes. For instance, in California, mobiles are not subject to state building codes. So each county assessor's office determines what qualifies as a "permanent foundation." One county requires a full concrete perimeter foundation with earthquake retroffiting (i.e. bolting), whereas another county will allow the homeowner to lay down a strip of gravel, stack some cinderblocks, and set the mobile on it. This inconsistency makes profitable underwriting somewhat challenging.
It can be tricky purchasing mobile home insurance as many agents try to sell a depreciated value policy. Mobile homes are the one coverage that do not use "replacement cost" as determined by contractor labor plus materials to repair or replace. Replacement cost policies for mobile homes are based on the purchase price for a brand new mobile of like kind and quality plus transportation and installation. After 10 years of age or so, many mobile homeowners claim they would not want a new mobile anyway, they would go purchase a used one; therefore, they do not buy replacement cost, they only buy depreciated value. While this can be a significant savings on your annual premium, the likelihood of a total loss is much higher in a mobile than in a site-built home; and the danger is that you would only get paid $5,000 - $10,000. Good luck purchasing one and transporting/installing it onto your property for that amount.
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Mobile Home Insurance typically mirrors a homeowner's policy in the fact that it has coverage for the dwelling, other structures, personal property, loss of use, personal/premises liability, and all the optional coverages such as identity theft, personal injury, etc.
Mobile Home insurance is usually only provided by specialty companies such as Foremost, American Modern, American Reliable, Aegis, etc. Mobile homes present a unique loss exposure. Site-built homes are usually constructed much better than mobiles/manufactured homes, and site-built homes have a variety of fire-resistant materials used in them. Mobile homes, on the other hand, typically dry up fairly quickly; and it is not unusual to see a small fire cause a total loss in a mobile over 15 years old, as the mobile has then become a tinderbox.
Mobiles also can vary on the foundation, depending on local building codes. For instance, in California, mobiles are not subject to state building codes. So each county assessor's office determines what qualifies as a "permanent foundation." One county requires a full concrete perimeter foundation with earthquake retroffiting (i.e. bolting), whereas another county will allow the homeowner to lay down a strip of gravel, stack some cinderblocks, and set the mobile on it. This inconsistency makes profitable underwriting somewhat challenging.
It can be tricky purchasing mobile home insurance as many agents try to sell a depreciated value policy. Mobile homes are the one coverage that do not use "replacement cost" as determined by contractor labor plus materials to repair or replace. Replacement cost policies for mobile homes are based on the purchase price for a brand new mobile of like kind and quality plus transportation and installation. After 10 years of age or so, many mobile homeowners claim they would not want a new mobile anyway, they would go purchase a used one; therefore, they do not buy replacement cost, they only buy depreciated value. While this can be a significant savings on your annual premium, the likelihood of a total loss is much higher in a mobile than in a site-built home; and the danger is that you would only get paid $5,000 - $10,000. Good luck purchasing one and transporting/installing it onto your property for that amount.