How To Insure A Mobile Home
When you buy a house with a loan, your lender will tell you that you need insurance to cover the house. If you buy a traditional home, you must purchase a homeowner's insurance policy. What happens, though, if you buy a mobile home? Do you still need insurance? Is it the same type? Here are several things you should know about insuring a mobile home if you are ready to buy one.
You Need Insurance for the Lender
When you own a house but owe money on it, you have a lender that dictates rules. One of the primary rules is that you must carry insurance on the house. Lenders require this for their own protection. If your house encountered damage that you could not pay to repair, you might stop paying your mortgage payments. As a result, your lender would lose money on the deal. If you have insurance, the insurance company pays the repairs, and you can keep paying your mortgage payments. Therefore, you need insurance no matter what type of house you own. The difference is that you will need a mobile home insurance policy. Mobile home insurance is a form of homeowner's insurance, but it is strictly for mobile homes.
You Cannot Purchase Traditional Home Insurance
Lenders offer many types of home insurance plans, but each type is for a specific purpose. For example, if you buy a condo, you can buy a condo insurance plan. If you buy a traditional house, you can get a traditional homeowner's insurance policy. If you buy a mobile home, you will need to buy a policy dedicated for mobile homes. Agents call this mobile home insurance, and this is the type you must purchase.
A Mobile Home Plan Covers the Same Things
A mobile home insurance plan covers the same things as traditional insurance, but the costs might be different. Mobile homes are typically worth less money, which means you might get a discount for the insurance. On the other hand, mobile homes have higher risk levels of damage from certain perils, such as wind. As a result, you might pay more for the added risks. You can find out by asking a lender for a quote for coverage that includes all the coverage types and amounts that you need.
When lenders insure mobile homes, they provide the same types of coverages, but they take the additional risks into consideration. If you would like a quote for coverage, contact an insurance agent that offers mobile home insurance plans.
For more information on homeowner's insurance, contact a professional near you.