Mobile Home Insurance Policy Coverage

Homeowners with mobile homes typically must purchase an insurance policy designed to cover their type of property. Mobile home policies can cover homeowners against damage, theft and legal liability stemming from accidents. Property coverage can include damage or loss to the mobile home itself and to the contents of the home. Optional coverage can provide additional protections from natural disasters and issues that can arise while moving a mobile home.

  1. Types of Mobile Home Policies

    • The insurance industry offers two basic types of mobile home policies -- comprehensive and named peril. A comprehensive mobile home policy covers property damage deemed accidental, sudden and direct. Comprehensive policies include a list of potentially damaging perils not covered, and pays for damage caused by perils not listed. For example, a comprehensive policy may list flood damage as an exclusion from coverage, but may pay for wind damage if it does not appear on the list of exclusions. Named peril policies list covered perils that can cause loss or damage. Homeowners with a named peril policy can only file a claim for damage or loss caused by a peril listed in the terms of the policy.

    Property Coverage

    • Mobile home policies can include coverage for the home itself and the homeowner's personal possessions inside the home. Policies can also cover buildings attached to the mobile home or unattached building, such as garages or storage buildings. Policies can exclude coverage for certain types of personal items, such as original artwork, stamp collections or jewelry. Insurance companies often offer separate policies to cover excluded personal items. Homeowners typically have the choice of two types of property replacement, actual cash value and replacement cost. Actual cash value pays for damages and losses according to a depreciated value, while replacement cost coverage pays the actual amount needed to replace an item at current market prices. A homeowner can negotiate the amount and type of coverage necessary to protect her home and personal possessions.

    Liability Coverage

    • Mobile home policies can include liability coverage, which can help pay for property damage or bodily injury that occurs in the mobile home or on the home site. The purpose of liability coverage is to protect the homeowner from legal liability. For example, if a visitor slips and falls from the steps of a mobile home, causing injury, liability coverage can pay for medical expenses. If the injured person sues the homeowner, liability coverage may also pay for legal expenses, including lawyer fees and damages.

    Optional Coverage

    • Mobile home owners can add additional coverage to their policies, according to their individual needs. Optional coverages come in the form of separate policies or riders to primary mobile home policies. Transportation coverage offers protection for collision damage that may occur while moving a mobile home. The majority of mobile home policies do not offer protection for flood damage. The federal government sponsors the National Flood Insurance Program (NFIP), which provides flood coverage for mobile homes, condominiums and houses.

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