Mobile Home Insurance Requirements
Mobile homes have come to be a fast and affordable way to homeownership. With better construction and larger floor plans, they provide all the amenities as a regular "stick framed" house. Good interest rate financing options are available to the mobile homebuyer, and insurance companies offer reasonably priced insurance to protect the lender and the homeowner from risks and perils (storms, weather-related hazards, fires, smoke damage, vandalism) and any other listed item that is covered in the policy.
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Mobile Home Insurance Requirements
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Insurance companies require that the mobile home be set up on land, either on a permanent foundation, or have tie-downs and ground anchors affixed to the home. Ground anchors are required, as are roof anchors that connect the roof to the frame. These anchors protect the home from damage in high winds. Anchor and tie-down requirements may vary from one insurance provider to another; inquire about the type and number when you are shopping for insurance.
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HUD Inspection Stickers
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Mobile homes are built to the standards of HUD (Housing and Urban Development), and will have a sticker stating that it was inspected and passed the inspection. Your insurer will need to view this sticker along with the model and manufacturer numbers prior to granting coverage.
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Age of the Mobile Home
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If a mobile home is older than a specified number of years (an example: 50 years old), the insurer may require that proof of roof replacement, electrical update, heat and air, and appliance replacement be shown. Old and outdated electrical work can be a fire hazard, making the older mobile home a high risk to the insurer.
Mobile Home Must Be Connected to Utilities
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Utilities are required to be connected and available to the home. This includes electrical and water.
If the neighborhood or park is on a public sewage system, it must be connected. If it will have its own private septic, it must be connected. If the home is just being set up, a county inspection will state that it is fit for people to live in, and the utilities will be checked and tested for compliance.
Circumstances That Will Not Be Insured
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Mobile homes that are condemned or in a state of major disrepair will not be insured. Homes that have no public access, that are located on water, or that are not permanently tied to the ground will not be insured. No insurance coverage will be available for homes without access to utilities or that are owned by someone who has a history of insurance fraud or arson. Each insurer will have its own list of insurance limitations. Some of these items will be listed on the initial application/questionnaire for coverage.
Insurance Limitations
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Limitations for risk will vary from insurer to insurer, just as the cost of coverage will vary. For example, a swimming pool with a diving board may be acceptable to one insurer, while another would require that the entire board and anchor be removed as a condition for insurance coverage. Some insurers will insure the home at replacement cost, which is the cost to replace the home with similar quality as it is presently. Other insurers will only cover the home at actual cash value, which gives a value in the home's depreciated status based on age and condition. If you have a mortgage, the insurer will need to coordinate with the lender to ascertain lender requirements for coverage and act accordingly. There are enough-high quality insurance providers that will be able to satisfy your lender and your needs. You just have to shop and compare pricing and coverage.
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