Many insurance companies will not write a mobile or manufactured home on a standard homeowner’s policy. In obtaining a quote, your agent should ask multiple questions to determine the specific coverage you need. Some of these important coverages are listed below:
Do you have comprehensive protection? This covers any cause of loss such as fire, lighting, wind, hail, explosion, burst water pipes, etc. unless that cause is specifically excluded in your policy documents.
Check the stated value loss settlement. In case of a total loss, check the stated value of your home; this should be listed on your policy. Is there a depreciation deduction? For a partial loss, look at the actual cash value amount. Do you need to upgrade that amount to a replacement cost valuation?
How about your liability coverage? Are you covered if an injury occurs to someone while on the premises or if you accidentally injure someone or damage property away from your home?
Are your personal belongings –personal property – protected on an actual cash value basis if the home suffers a covered loss?
Are there other structures on the property which need coverage? For example, do you have a carport, shed, detached garage or fence?
Don’t forget additional living expenses. If a covered peril causes sufficient damage which necessitates you moving out of your home and relocating, do you need to cover the extra living expenses until repairs are complete or you find a new home?
Reasonable expenses comes in to play when you are faced with the cost for emergency repairs that prevent additional damage from occurring, such as covering a roof after a storm.
In the case of vandalism, is physical damage or defacement of the home included in your coverage?
How about theft coverage? Are those personal items or permanently attached items such as a heat pump or even copper piping covered for loss if stolen from your home? Remember, certain items can have specific dollar limits so you need to have a detailed conversation with your agent.
There are other important optional coverages to discuss with your agent which include:
Enhanced coverage increases the limits for additional living expenses, collapse, emergency removal, fire department surcharge, antenna/satellite dish, and more.
Builder’s risk is a type of coverage which is essential for homes just purchased from a dealer. It is also required by some lenders. This endorsement protects your home during the time between loan closing and occupancy.
You may want to widen your policy’s scope, adding breakdown protection to include the repair or replacement of major appliances, HVAC and electronics due to mechanical or electrical failure.
Lastly, identity theft can result in real harm being done to a person’s credit report. Identity theft recovery is an optional coverage which provides professional assistance and extra $$ in expense reimbursement.
As you can see from the questions above, to insure your home correctly, many questions must be asked by your agent. In the event of a loss, you want your policy to respond appropriately and effectively. If you are not covered properly, that may not happen. If you are unsure about your current coverage, we’ll be happy to take a look at your policy with you. After all, that’s why we’re here.
