Need Insurance For Your Mobile Home? Know What Makes Up Your Coverage
Are you going to be purchasing a mobile home and need to purchase insurance for it? Mobile home insurance will help insure modular homes, manufactured homes, or even fifth-wheel campers in some situations. Here are a few things that will make up your coverage.
Replacement Cost Vs Actual Cash Value
Be aware that mobile home insurance can recover the replacement cost or actual cash value of the home. The difference between these two policies is that an actual cash value policy will only give you what the home and items within it are worth at the time you make a claim. This is often a depreciated value that is much lower than what you paid. A replacement cost policy will give you the money needed to replace damaged structures and property with what it will cost to buy it new today, and it is often a much better coverage.
The most important coverage you can get is dwelling coverage. This is the amount that is designed to cover the cost to replace your mobile home in a total loss situation, as well as any attached structures. If the structure is not attached to the mobile home in a permanent manner, then it is not covered under dwelling coverage.
Additional structures are items that are not attached to the dwelling are insured with additional structure coverage. You may have a shed on your property, a structure to park your car under, or even a hot tub. Since these items are not permanently attached, they fall under the definition of being an additional structure.
Liability coverage is designed to protect your property if you are the defendant in a lawsuit. Since it is possible that the value of your mobile home could be used to pay for a judgment in a lawsuit, liability coverage is designed to give you financial protection. For example, if someone were to become injured on your property, then the judgment would be paid out of your liability coverage.
All of the items in your home that are not permanently attached are covered under personal property coverage. If you can remove it from your home, then it is covered under personal property coverage. For example, while you typically do not remove a refrigerator from your home, it can be removed easily. However, your HVAC system would not be included since it is considered permanent.
For more information about mobile home insurance plans, contact a local service.