Although prefabricated homes, formerly known as mobile homes, are built in a factory and relocated to a selected location, they do not differ significantly from a locally built family home, even when it comes to insurance. Whether you live there all year or seasonally, it is important to protect your home with mobile home insurance.
WHAT DOES MOBILE HOME INSURANCE COVER?
Insurance coverage for mobile and prefab homes is generally similar to that of a standard homeowner, providing protection for the home, your personal property, and liability claims. According to the Insurance Information Institute (III), the two basic insurance policies, which are generally included in mobile home insurance policies, related to property damage and personal liability.
Physical structure and content: If your mobile home or its contents are physically damaged by hazards such as fire, hail, theft or vandalism, repair or replacement costs are generally covered by a mobile home policy. Additional structures on your property, such as a patio or garage, and your personal belongings would likely also be covered. However, some guidelines only cover certain causes of loss. These named risk policies may have lower premiums. However, ask your agent what is excluded from the policy.
Responsibility: Mobile home policies generally include liability insurance which can protect you (within the limits of the specified policy) if you or someone in your home is responsible for damage to property of others or if a guest is injured in your house. However, liability insurance does not generally cover injuries to you or any other member of your household, says III. If you slip, it is unlikely that you will receive medical costs. However, if your children accidentally break a neighbor's window while playing a ball, your policy will likely cover the cost of the repair.
DOES MOBILE HOME INSURANCE LEAK FROM WATER?
Mobile home insurance can cover water leaks in certain situations. For example, if a frozen pipeline suddenly explodes, insurance can help pay for repairs to your mobile home or its contents. However, you will likely find that your policy does not cover damage caused by a broken pipe or water leakage due to improper maintenance. Suppose your mobile home is not occupied and the heat is not properly maintained, resulting in a broken pipe or an error in repairing a leaking pipe. Mobile home insurance would probably not cover the damage caused in these situations.
III states that most mobile home insurance policies do not include flood insurance. You may be able to purchase separate flood insurance through the National Flood Insurance Program.