Mobile Home / Manufactured Home Insurance

Because everyone's needs are not the same, it is best to consult your agent to help assess your needs and find the insurance policy that is right for you.

What do I look for in Mobile Home insurance?
When the age and location of the home permit, you should always choose Replacement Cost Coverage. As mobile homes age their value diminishes, much like a car. This is called depreciation. A standard mobile home policy will deduct for any depreciation in the event of a total loss. When you purchase Replacement Cost Coverage there is no deduction for depreciation. Instead, you will receive the cost of replacing your totaled home with a new home, up to the policy limits. This is sometimes referred to as “new for old”.

For example: A brand new Park Model purchased for $35,000 -- and insured for the same amount-- may only be worth $20,000 five years later due to depreciation. A standard mobile home policy would only pay out the current value of the Park Model, leaving the homeowner short by $15,000 dollars.

In contrast, if the homeowner had purchased Replacement Cost Coverage they could expect to receive the full $35,000 towards the purchase of a brand new home. Replacement Cost Coverage may also apply to your personal belongings.

What does “Actual Cash Value” mean?
Actual Cash Value is the term used to describe the current market value of a home or personal property. In other words, Actual Cash Value is the cost of an item minus depreciation.

For example: A used T.V. set may have a market of value of $100 after depreciation is applied. While the same T.V set when brand new may have been worth $300.

What type of losses should be covered by my Mobile Home policy?
Many of the basic coverage’s found in a traditional homeowners policy can also be found in a mobile homeowners policy.
It should pay for certain kinds of accidental damage to your home, belongings, or unattached structures such as a tool shed. Coverage for this type of damage is called physical damage coverage. Common examples of events that cause physical damage to your home are fire, wind, vandalism, and falling objects. Additionally, theft of your belongings may also be covered.

It is a good idea to read your policy and consult your agent for a full accounting of what is covered and what may not be covered.

Will my policy protect me if I am sued?
Again, much like a traditional homeowners policy, a Mobile Homeowners policy should protect you against claims or lawsuits filed against you by people who are accidentally hurt by your actions or activities. Coverage for these kinds of claims is called Liability Coverage.

Claims might include medical expenses, lost wages, pain and suffering, and even property damage. Liability coverage should also help you pay for your defense in the event of a lawsuit. Liability coverage does not pay claims to you or members of your household.

We recommend our clients carry minimum liability limits of $300,000.

How much should I insure my home for?
It is vital to insure your home for the proper value. Any policy that provides Replacement Cost Coverage will require you to insure the home for the full replacement cost value. If your policy does not provide for replacement cost, then you will want to insure the home for its market value, or sometimes referred to as Actual Cash Value.

For example: A ten year old home may have market value of $40,000 but a replacement cost value of $75,000. If your policy includes Replacement Cost Coverage you will need to insure the home for $75,000. Despite the increase in coverage amount, a policy that includes Replacement Cost Coverage is usually the best buy.

Ask your agent for assistance in determining the right coverage amount for your home.

What deductible should I choose?
A deductible is the portion of the loss that you agree to pay out of your pocket. Typically, the higher your deductible the lower your premium.
We recommend a minimum deductible of $500. This provides excellent coverage for most claims and lowers the cost of your insurance too.

What else should I consider when buying Mobile Home insurance?
Choosing the right agent is just as important as choosing the right coverage and insurance company. Many agencies only sell mobile home insurance on an occasional basis. In contrast, The Adams Agency is one of the largest insurers of mobile home insurance in the country. Our expertise and experience allow us to provide the best advice, best coverages, and superior service.