Friday, May 11, 2012

How to Get Mobile Home Insurance

Buying a mobile home is an affordable way to become a home owner. For many people it is the only way they can buy a home, because of the low initial cost. But like any home, a mobile home needs to be adequately insured before you move in. Following are a few tips on how to get mobile home insurance.

Determine Your Needs

Before you go searching for an insurance policy for your mobile home, you should determine exactly what your home insurance needs are. If you also own the land the mobile home is on, then your insurance policy will have to include coverage on the property. The insurance you carry will be comparable to a homeowner’s policy for a site-built home. You will need to be covered for loss from storm damage, liability against injury, theft, and fire. Your policy will also have to include any other buildings on the property, such as a garage or shed.

Coverage for Contents

You will also have to buy coverage for the contents of your mobile home. There are two basic ways you can do that: actual value coverage and replacement cost coverage. With actual value coverage, if something you own is either damaged or stolen you will receive payment for what that item was worth at the time the claim was filed. That means that whatever the initial value was, your payment will be released to you according to its depreciated value. With replacement cost coverage, you will receive whatever amount of money it will take to buy a comparable item at its retail cost.

Do You Need ‘Natural Disaster’ Insurance?

If you live an area that is prone to hurricanes, you may want to consider adding a rider that covers that type of damage. Another ‘natural disaster’ you may need protection from is floods. If you live in a flood plain, you may be required to carry insurance to protect against it. In some cases you may need to protect yourself against the possibility of a flood, even if you don’t actually reside in a flood area because there is always the potential for heavy rains to cause damage to a basement. Having flood insurance will provide financial protection from that possibility. If your mobile home is in an earthquake zone, you will need to have coverage for that potential problem, as well. If your home is financed, coverage for ‘natural disasters’ may not be an option; you may have to carry flood, hurricane, or earthquake insurance if you live in a place that is a designated threat area.

Personal Property Coverage

Owning a large collection of action figures or stamps is the way many people have of expressing themselves. If you have a valuable collection of this type, or if you have extremely costly jewels or furs, you will need to have adequate home insurance coverage. If there is a fire, damage from a storm, or someone breaks into your mobile home, having sufficient insurance coverage will mean you won’t have to take a total loss. Instead, you’ll be reimbursed for their value. It would be a good idea to have visual proof of your possessions in case you have to file a claim. Take digital photos of each item or use a camcorder to record images of them so you can prove you actually had the collection.

Shop for a Good Price

When you’ve determine exactly what type of coverage you’re going to need, it’s time to start shopping for an insurance carrier. You can go on the Internet and search for companies that sell insurance online. Fill out the forms on the websites and request a quote for the coverage you’ll need. After you’ve received a quote, you can use them for comparison when you begin calling the more traditional brick and mortar companies. Make sure you ask for exactly the same type of coverage when you speak to each agent. In that way, you will be sure that the quotes are for comparable home insurance coverage.

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