Make sure you know what you're getting when you shop around for insurance for your mobile home. Know what risks you face and how to protect yourself from them. Here are a few important things to think about:
Named peril or all risk (comprehensive): You can buy a homeowners policy with a named peril. This means that the policy will pay for any losses caused by the risks listed on the policy. Some of the dangers that are named are fire, lightning, and ice/snow storms (check your policy). Named peril policies are less expensive than all-risk policies, but they also have more limits.
All risk polices are comprehensive. Under an all-risk policy, the insurance company will pay for all losses except those that are excluded (discuss the exclusions with your agent). Even though it costs more, it's worth it.
Trip Collision Coverage: Unlike homes that stay in one place, mobile homes can be moved from one place to another. If you think you might move, talk to your agent about this coverage. It's better to have it but not use it than to need it but not have it.
There are two ways to figure out the value of something: the replacement cost and the actual cash value (ACV). Make sure your home is valued at what it would cost to build again. That means that if your mobile home is destroyed, you will get the cost to replace it (subject to policy limit). Actual cash value includes depreciation. If you've lived in your home for a few years, its value may have gone down so much that you don't have enough money to buy a new one.
In the event of a covered loss, your insurance company will pay a certain amount toward the cost of moving your mobile home. For example, you could save your home by moving it from a place that was flooded.
Shop around when looking for insurance for your mobile home.
