Homes come in all shapes and sizes. Regardless of the type of structure you call home, protection is a top priority. Homeowners insurance is designed to protect your home and financial investment. Coverage for your home is dependent on different factors. The most important factor is what type of home you have. Homeowners investing in mobile or manufactured homes need to be clear about their insurance needs and coverage.
Mobile, or manufactured, homes are an affordable alternative to typical homes. Most homes are built on site and remain in the same spot for the duration of their lifetime. It is common for a home to be built on a concrete foundation. Mobile homes are built off-site and moved to the purchaser’s chosen location. Instead of a concrete foundation, manufactured homes are secured to the ground in other ways. Manufacturing materials and processes are considered when it is time to purchase the appropriate insurance for your home. Insuring a mobile home comes with some challenges. While these homes are often more affordable, they can lack strengths associated with a typical foundation. Still, manufactured homes are a big investment that needs to be protected.
In Texas, there are no specific laws that require you to insure a mobile home. However, mortgage companies and lenders will most likely require insurance to protect their investment. Often mobile home communities require insurance as well. Finally, keep in mind that insurance protects you, the buyer, and your investment in your home.
Insurance for your mobile or manufactured home is broken into three main parts. The part of the insurance policy that covers the structure is called Dwelling Coverage. In this part of the policy, your mobile home is covered from specified dangers or events of loss. Examples of coverage include fires and hail storms. All policies have limits. These limits can be more restrictive for mobile and manufactured homes. In some cases, older manufactured homes may need an inspection before they can be covered. Coverage could even be denied based on the age of the mobile home. Over the years, insurance providers could require regular inspections to determine the mobile home’s condition before renewing an existing policy. In the case of a manufactured home, coverage limits can be based on replacement cost or actual cash value. Replacement cost simply means the policyholder will receive the amount needed to replace their home. Actual cash value means the policyholder will receive the value of the home after calculating depreciation. The specifics for each policy can vary, so a clear discussion with your agent is necessary to ensure you get the coverage you need.
Liability insurance protects the policyholder from claims of bodily injury that occur on the property. In the event someone falls on your stairs and an injury results, you could be held liable for medical expenses and damages. Liability insurance can cover medical expenses and even court fees in the event of a lawsuit. In many cases, liability insurance is combined with dwelling coverage. However, some companies do offer them as separate policies. If you have other buildings on your property that are not attached to your home, you may want to add coverage for them. Workshops, detached garages, solar panels, barns, or any other permanent structures can be covered with this type of policy.
Keep in mind that your mobile or manufactured home will most likely not be covered by your insurance policy while it is being shipped or moved to your property. You may be able to purchase additional coverage in this instance. Flood coverage is not standard in most homeowner’s policies. Owning a home is an unbelievable opportunity and huge responsibility. It is important to protect your investment by purchasing the best insurance policy to meet your needs.