Understanding Your Mobile Home Insurance by Pamela S Thibodeaux (c) 2011
Like a homeowner policy, mobile home insurance offers coverage on the structure, contents, loss of use, other structures and property liability. Whereas a home owner policy usually comes with replacement cost (RPLC) many mobile home policies do not offer this option, they are actual cost value ACV policies.
I'll take a moment and define ACV and replacement cost here:
Replacement cost means in the instance of a total loss, the home will be totally rebuilt to it's pre-loss condition, depreciation may be factored in, but in most cases, a replacement cost policy will reimburse the insured after all repairs are made. Some replacement cost policies also offer an extension of coverages to make sure the full cost of rebuilding is covered. That said, a replacement cost policy will not pay for you to build a larger home nor will it allow you to downsize and give you any money left over.
Actual Cash Value means Replacement Cost -minus- depreciation.
Now that we've determined what mobile home insurance covers and the difference in RPLC and ACV, let's look at the different aspects of a mobile home insurance policy.
*Coverage A - is the amount of coverage provided for the actual structure and any attached additions. Most policies are initially written for the full cost of the home. Although replacement cost is available on some mobile home insurance policies, for the most part, depreciation will be factored in at the time of a claim. This is why it is imperrative if you attach anything to the home (a covered porch or deck, a full room, etc) that you notify your insurance carrier of these changes so if necessary they can increase your Coverage A.
*Coverage B - other structures provides coverage for sheds, outbuildings and structures not attached to the mobile home and is usually 10% of coverage A. some policies let you choose how much other structures coverage you need - though there may be a maximum limit.
*Coverage C - is contents or personal property - this is all of your stuff - anything that is not permanently attached inside the home (furniture, dishes, appliances, etc). Coverage C is usually 50% of coverage A but can be increased - again with a maximum limit. Sometimes you can get replacement cost on your contents where it is not offered on the structure.
*Coverage D - loss of use - this is the amount the company will pay for you to live outside your home while repairs are being made after a loss. Most mobile home insurance policies have a maximum dollar amount to pay for loss of use - although some pay up to twelve months.
*Coverage E - is property liability - this pays in the instance someone gets hurt on your property and you are found liable. Some mobile home policies offer various options from $25,000 up to $100,000 for coverage E.
*Coverage F - is the amount of medical payments offered to the inured person - usually $1,000 to $5,000 depending on how much your coverage E is. It is important for you to fully understand your mobile home insurance policy. If you have any questions, make an appointment with your agent and get them answered!
Award-winning author, Pamela S. Thibodeaux is the Co-Founder and a lifetime member of Bayou Writers Group in Lake Charles, Louisiana. She has over twenty years experience in bookkeeping, insurance and tax preparation. Multi-published in romantic fiction as well as creative non-fiction, her writing has been tagged as, “Inspirational with an Edge!” ™ and reviewed as “steamier and grittier than the typical Christian novel without decreasing the message.”
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