The Critical Importance of Homeowners’ Insurance for California Mobile Homes

In light of recent natural disasters, including the deadly fires that ravaged both Northern and Southern California one year ago, the importance of homeowners’ insurance has never been clearer. No matter the size or age of your mobile home, homeowners’ insurance is an inexpensive, low-risk way to protect your home should it be damaged or destroyed.

Though not required by law, some property management companies require homeowners to insure their homes whether they occupy or rent them. Additionally, if you plan to mortgage your home or move it to a mobile home park, there is a strong probability your lender and/or landlord will require you to have the proper coverage. 

Homeowners’ insurance can provide coverage for both your home and your property should it be damaged or destroyed. You will pay a premium each month which will vary based on the benefit amount you choose – that is, the amount your insurance company will pay you to cover damage to your home.

Many insurance companies include liability protection, meaning that they will defray the cost of any legal dispute arising from someone suing you for an injury sustained on your property. In terms of natural disasters, some companies exclude different types of damage – like fire or flood damage – in certain high-risk regions.  

Types of Coverages

• Dwelling: This coverage helps the insured rebuild or repair the physical structure if it is damaged by a covered issue. For instance, the home would be covered if a fire burns down an exterior wall (assuming that fire coverage was included as a peril that would trigger coverage in your policy). This type of coverage can also protect a deck, roof, or covered patio.
• Liability: If someone is injured on your property, for example, struck by a fallen tree, he or she could potentially hold you liable for any injuries sustained. Adding liability coverage your policy will cover the fees of your legal defense and could even help you pay damages if needed – only up to the coverage limit stated in your policy.
• Personal Property: If your personal items are damaged or stolen, this policy might cover a percentage of their value. However, in most cases, you would need to first satisfy a deductible amount before your policy will pay out.
• Other Structures: If your property includes structures that are not permanently attached to your home, like a shed or garage, this type of coverage may cover those as well.
• Additional Living Expenses: If a covered loss renders your home unlivable, this provision in your policy would compensate the insured for any additional expenses they incur from having to live elsewhere. For instance, if your home burns down and fire damage is included in your policy, your insurer may pay for you to stay in a hotel temporarily while your home is repaired. Keep in mind that you may be responsible for paying any overages (amounts your policy doesn’t cover).

Tips for Purchasing Homeowners’ Insurance

• Gather and compare multiple quotes: Before settling on an insurer or policy, it is important to shop around. For the harder to insure home, independent agents can help steer you in the right direction when shopping for homeowner insurance. Be sure to ask questions about what your policy options cover, especially regarding the basis of a claims settlement. In other words, confirm whether the coverage on your home includes replacement cost for both total and partial losses, or actual cash value on partial losses. Also, ask how the value of your home is determined and whether it is likely to depreciate over time.
• Consider different coverage levels: In many cases, more coverage may not increase your monthly premium substantially. As such, do not immediately shy away from a larger coverage amount believing it will cost you more. When you choose your coverage amount, consider factors like the value of your mobile home, the personal property you would like to protect, and how much you would need to protect yourself in the event of a legal claim.
• Confirm wildfire coverage: In many high-risk areas, fire damage is not covered. If you live in an at-risk area, be sure to ask your insurer if fire damage is included so you can ensure your home will be covered in the event of this type of natural disaster.

Think of your homeowners’ insurance as an investment in your home, your safety, and your security. While it can be difficult to imagine catastrophic events – or even minor inconveniences, like leaks and power outages – wreaking havoc on your home, it is best to put a plan in place before those events occur so you can ensure long-term safety.

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At Harmony Communities, we feel strongly that each resident has a sense of home. That they come home from work and feel pride in their environment and in their place in the greater community. That families are comfortable raising children in our neighborhoods, and that couples and singles know that they belong to something bigger than their four walls. In other words, we seek to create harmony within each community, making our communities not just passable, but peaceful, safe, functional, and beautiful.