How to Effectively Insure Your Mobile Home

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effective mobile home insurance

A mobile home is a prefabricated home, built in a factory and then moved to a location to be used as a permanent home. It is important to effectively insure your mobile home just as you would any other home. You want to make sure that your home, property, and liability costs are protected. Mobile homes are also called pre-fab homes or manufactured homes.

Mobile home insurance coverage can vary from a standard built structure. Some insurance carriers will not insure a mobile home if it is older than a certain age. Another consideration is how is your mobile home used? Some insurers may not insure homes that are only used seasonally or rented out. Different insurance carriers will have different coverage options and the same option might include different things depending on the carrier. It is important that you have enough coverage for your mobile home that works with your budget.

There are some many insurance coverage options for your mobile home to consider

Personal Property:

Personal property insurance is exactly what it sounds like. Generally, this insurance is purchased to cover the cost of replacing your personal belongings in case something should happen. When deciding on the amount of personal property insurance you need think about how much it would cost to replace all of your belongings; your jewelry, home furnishings, clothes, etc. Depending on the policy expensive items may or may not be covered and if they are covered you might have reimbursement limits. If you have valuable items you would like covered in case you ever had to replace them you may want to look at extended coverage on high ticket items such as jewelry, furs or watches. Including your high value personal items is an important step in making sure you are effectively insuring your mobile home.

Liability:

Liability insurance is needed to insure you against the cost of injury to yourself or a guest in your home. This insurance will cover you in case you are sued for an injury or damage to property. Liability insurance will generally have two categories included: personal liability and medical coverage. Personal liability covers situations where you are liable for injury to someone or property damage. The medical portion of liability insurance would pay any associated medical bills up to your limit and minus any required deductibles. There can be exclusions included in your liability insurance. Work with an experienced agent to understand your options and determine the amount of liability coverage you need. You want to be sure to have enough to cover any lawsuit expenses and amounts awarded to the injured party. You should consider your finances and assets and ask yourself what you could afford in the worst case scenario. Liability insurance can be increased or supplemented with additional coverage if your situation warrants it.

Other Structures:

Other structures insurance is also exactly what it sounds like. If you have an additional structure that is not attached to your primary home, this coverage would extend to that structure. If you have a tool shed or standalone garage that you would like to insure this additional coverage might be a good fit for you. You should also note that even if the structure is connected to the mobile home by wire or other loose connection you may need other structure coverage for the other structure.

Fire Department coverage:

Some insurance companies offer fire department coverage for your mobile home. Investopedia defined fire insurance as “Fire insurance is insurance that is used to cover damage to a property caused by fire“. Fire insurance is a specialized form of insurance beyond property insurance, and is designed to cover the cost of replacement, reconstruction or repair beyond what is covered by the property insurance policy. Policies cover damage to the building itself, and may also cover damage to nearby structures, personal property and expenses associated with not being able to live in or use the property if it is damaged.” Mobile homes face particular challenges when it comes to fire hazards due to the way they are constructed. Due to the size and structure of many mobile homes a fire can be difficult to put out and dangerous to responding firefighters. Owner modifications such as a pitched rood and undercarrier storage can also present a challenge to putting out a fire. The addition of fire department coverage would help with any costs charged to you by the fire department if they came to your home in the event of a fire emergency.

Optional Replacement Coverage:

This coverage would allow you to replace your damaged property with new property that is a similar material and quality without deducting amounts for depreciation.

Flood Insurance:

Most mobile home insurance policies will not include flood insurance. Pinal County has a website devoted to helping home owners determine the flood plain for their properties. Even if your mobile home is not located in a high flood plain it is important to consider flood insurance. While mobile home owners in Casa Grande, Arizona may not worry about floods as much as people living on the coast, in 2013 there was enough summer rain to cause some area flooding. Desert monsoons can come quickly and bring heavy, unexpected amounts of rain. Consider your location and if flood insurance is appropriate for you.

Being able to own your own home is a tremendous gift and typically your greatest asset. Be sure you are protecting your asset by effectively insuring your mobile home. With so many options available, consult an expert to make sure you have a budget conscious policy in place that addresses all of your insurance needs.

Auto Insurance Minimums, Are They Worth the Savings?

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Auto Insurance minimums are the amounts of insurance that are required by the state. By utilizing the bare minimum coverage you may save money on your monthly premiums, but is utilizing the bare minimum coverage really worth the savings?

The state of Arizona has mandatory insurance laws of liability coverage in the minimum amount of $15,000 bodily coverage for 1 person and $30,000 bodily coverage for 2 people. The state of Arizona also requires $10,000 property damage liability coverage. More details about the Arizona insurance requirements. These laws establish the bare minimum requirements that you must have when insuring your car, motorcycle, or golf cart. In general, the higher your coverage amounts the more expensive your insurance premium will be. If your insurance company potentially has to pay out $300,000 when you are involved in an accident instead of $10,000 you will pay typically pay a higher premium for that higher coverage amount.

Auto insurance minimums may not cover the cost of an accident. $10,000 is the minimum property damage liability coverage required. If you are responsible for an accident you may easily exceed this amount in property damage and be responsible for the remainder due. For instance, if you were to accidentally run a stop sign, side swipe another car and damage a city sign and sidewalk in the process, you could potentially be responsible for the damage to the other car and the city property. In the best case scenario, the insurance company would pay $10,000 towards these bills minus any required deductibles. If the damage to the other car costs $15,000 to repair and the stop sign and sidewalk cost $5000 to replace and repair for a total of $20,000 in damages, you could potentially be liable for $10,000 in damages which you would have to pay out of your own pocket.

Another scary scenario is using the same example but this time there are 4 people in the other car, each with medical injuries from the accident. If you are carrying the minimum insurance coverage you will only have insurance for up to $30,000 in bodily coverage. Medical bills can easily skyrocket beyond that amount and you would be responsible for the difference.

An increase in coverage doesn’t have to break the bank. If you are using the Arizona state auto insurance minimums because of budget restrictions call an experienced insurance agent. If you have a clean driving record or are a mature driver, an increase in coverage may not break the bank. You can also ask your agent to quote your policy with different companies to see if a better rate is available with increased coverage. Another option is to look at increasing your deductible to keep your premium low but get increased coverage amounts.

Bare minimums are better than nothing. If you are living paycheck to paycheck, have little to no assets, and are driving minimally, at the very least be sure to maintain the auto insurance minimums required by your state. If you are in an accident and your coverage is not enough, you can be held liable but something is better than nothing. If you do not meet the requirements of your state you can land in very serious trouble. You are required by law to maintain the insurance listed above. If you are pulled over and do not have insurance you can face suspension of your car registration and driver’s license for a minimum of three months. You can also have your license plates taken away. Once your suspension is over you may have to provide documents proving your financial responsibility and ability to pay for insurance before your license and registration will be reinstated. This is called SR-22 and it a document that verifies that you have auto insurance. If you are already having financial difficulties and find yourself pulled over without insurance you could create even more problems for yourself. If you have no driver’s license you will have a tougher time getting to work and you may face fines and fees to get your license reinstated. Be sure to have at least the bare minimum as stated by law when it comes to your auto insurance.

The state of Arizona has resources available when it comes to researching auto insurance. The mandatory insurance laws in Arizona are implemented for everyone’s protection and there are websites for your reference to help you understand and follow the law if you happen to commit insurance fraud, insurance companies has the ability detecting insurance fraud so you better think twice. The Arizona Department of Insurance’s gives the insurance minimums and explanations of the different types of insurance available. This site evens gives tips on how to reduce your premium including taking advantage of your insurance carrier’s discounts such as good driving or multiple policy discounts as well as increasing your deductible for a lower premium payment. It also gives a New Driver’s Guide to Auto Insurance and highlights the need for insurance, in particular for new drivers:

  • “The risk of an accident per mile driven among 16 to 19 year olds is four times the risk of older drivers.
  • Risk is highest at age 16, with the crash rate per mile driven almost three times as high as the risk among 18-19 year olds.
  • Car accidents are the number one cause of death among 16-19 year olds.”

This site also explains uninsured motorist insurance. Uninsured motorist insurance is available to protect you in case you are hit by someone who does not have insurance. Even though it is illegal, some people will run this risk.

While maintaining the minimum auto insurance coverage and having the accompanying lower premium may be tempting it is important to weigh the risk of being underinsured against the actual premium cost. There may be other cost effective alternatives that will not leave your bank account and assets exposed in the event of an accident. Are auto insurance minimums savings worth it? Work with an experienced agent to find the right amount of coverage for the right price. Don’t leave your financial health to chance.

Save Money By Switching to Liability Only Coverage on Your Car

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Insuring all of your family’s vehicles can get expensive. Switching to liability only coverage on one or more of your vehicles is one way to save money, but you should weigh the benefits of having full coverage against the benefits of saving money before you make this decision.

Here’s some information about the different parts of your auto insurance policy and some helpful tips to keep in mind.

Understanding the different types of coverage

Full coverage insurance contains comprehensive, collision and liability insurance on one policy. If you are still paying off your car then you are usually required to keep full coverage on your vehicle and wouldn’t be able to opt for liability only.

Liability insurance is the bare minimum that all states require by law that you carry in some form or another. This is what protects you if you were to injure someone else or damage someone’s car in an accident while driving.

The amount of insurance you are required to carry varies state to state. Take Arizona for example. Drivers are required to hold coverage up to $15,000 for each person injured in an accident up to a maximum of $30,000 for the entire accident, and $10,000 worth of coverage for property damage.

Comprehensive insurance is what protects your car from damage that isn’t caused by collision with another car or single car collision, like fire, theft, falling objects, explosions, floods and vandalism.

Collision insurance covers both accidents that happen with another vehicle and damage that your car would sustain if you hit another object that wasn’t a car, like a light pole or a fire hydrant.

Consider how much your car is worth

Before you drop coverage to liability only, you should consider how much your car is worth. You can check out sites like Kelley Blue Book to help you come up with an estimate.

Let’s say your car is worth $2500 and your premiums for full coverage insurance are $100 per month, or $1200 per year. Your deductible is $500. If you were to drive your car into a pole and cause major damage, would it be worth it to you to pay the $500 deductible? Or would that money be better spent going toward a new vehicle?

If you are paying more in premiums in a year or two than your car is worth then it may be time to drop your insurance down to liability only.

Keep in mind that if you are in an accident caused by someone else, his or her liability insurance will cover you and your vehicle. Another reason to focus on the road at all times and to be a safe driver!

What’s in your emergency fund?

Do you have enough in your emergency fund to replace your car if you were to back into a tree the day after you drop your car’s full coverage insurance? Is your car worth enough that you would want to pay for those repairs in full?

If your emergency fund doesn’t contain enough money to replace or repair your car if an accident happens and you don’t have another vehicle to drive, then you shouldn’t drop your coverage.

Dropping collision only

If you consider yourself a safe driver, but you aren’t ready to drop full coverage completely, you can try dropping collision first and continue paying for comprehensive and liability. That way you will still be covered if your car gets vandalized or that tree does fall on it.

This is a good idea as long as you are keeping enough money in your emergency fund to pay for the deductible.

Want more tips about whether or not to drop your insurance to liability only? At Gebhardt Insurance Group we are independent Insurance specialists, so we shop the nation’s top insurance carriers to find you the absolute lowest insurance rate for your home, automobile or business. Call us a call today at 520-836-3244. We’re here to help!