Insurance World

When shopping around for homeowners insurance for your mobile home, make sure you know what you’re buying. Know what risks you are exposed to and how to cover them. Below are a few basic things to consider:

Named peril or all risk (comprehensive): Homeowners policies may be purchased on a named peril basis. What that means is the policy will cover losses that occur as a result of the perils named on the policy. Some named perils are fire, lightening and ice/snow storm (check your policy). Named peril policies are cheaper than all risk, but they are also more restrictive.

All risk polices are comprehensive. Under an all risk policy, the insurance company will pay for all losses except for those that are excluded (discuss the exclusions with your agent). It costs more, but is worth the money.

Trip Collision coverage: Unlike stationary homes, mobile homes have the ability to be moved from one location to another. If there is a possibility that you will be moving your home, be sure to discuss this coverage with your agent. It’s better to have it and not use it than to need it and not have it.

Valuation: There are two types of valuation, replacement cost and actual cash value (ACV). Make sure that your home is valued at replacement cost. That means that you will get the cost to replace your mobile home in the event it is destroyed (subject to policy limit). Actual cash value includes depreciation. If you’ve had your home for several years, depreciating its value may leave you without enough money to buy a new home.

Emergency Removal: Insurance companies will pay a certain amount towards the cost to remove your mobile home in the event of a covered loss. For example, moving your home from a flooded location to preserve it.

When looking to insure your mobile home, always shop and compare.

If you’re in the market for homeowner’s insurance, or even if you already have homeowner’s insurance, here’s some advice: take inventory of your home.

There are two reasons to take inventory of your home for your homeowner’s insurance policy. The first reason is many homeowner’s insurance companies will ask for an inventory of your home before they offer you a policy. The second reason is having an inventory of your home will make it easier for you to prove what was stolen or damaged, therefore making the process of filing a claim and being reimbursed much quicker.

However, taking inventory of your home goes beyond just jotting down a list of expensive items and tucking it away in a drawer somewhere. Keep reading for advice on how to properly take inventory of your home for your homeowner’s insurance.

Make a detailed list of everything you own. Don’t panic – you can exclude things such as that shabby rug in the guest room that you only keep around to hide Fido’s first accident before he was house-broken, but do make sure to include everything of value – art, jewelry, expensive china and silverware, electronics – everything. Take pictures of the items, dig up receipts if you have them, and even consider taking a video of these items, as well. For electronics, you should also note the make, model, serial number, etc.

Regardless of how you choose to document these items, don’t keep the documentation in your home – that defeats the purpose should your house burn down. Keep the documentation in the bank, at your parents’, in a big safe you’ve buried in a secret location in a far off country – where ever. Just not in your home.

Finally, take your list, and other documentation if you like, to your homeowner’s insurance agent to find out if everything you own is covered under your policy. You may need to purchase additional insurance if it’s not.