How to Choose the Right Insurance Agent for Mobile Home Parks
Mobile Home Park Insurance—Who Needs It & What Does It Cover?
Mobile home parks can be a great investment opportunity. Without the right insurance coverage to safeguard your assets, they could prove to be a risky venture.
As an owner of a mobile home park, you have a responsibility to protect your asset and the people who live on the property. That said, mobile home parks present an unusual insurance situation. On the one hand, you may not be responsible for covering the homes or contents of the modular homes owned by your tenants.
There are certain liabilities that come with owning the land and park these homes are located on. Liabilities arising from injuries sustained in a common area and property damages from backed-up drains and sewers.
Considering the risks involved, it’s important to work with an insurance agency that understands your needs. Let’s look at some of the factors you should look at when considering mobile home park insurance companies and the types of coverage you need.
What Are Insurance Concerns for Mobile Home Park Owners?
Understanding the risks associated with a mobile home park investment is key to choosing the right coverage. You have a business property you need to protect with the right mobile home insurance coverage. At the basic level, you’re liable for insuring against incidents impacting the park as a whole. While your tenants are responsible for purchasing individual manufactured home insurance.
As a landlord, you count on individuals renting the mobile home units or renting space in your park for their own mobile homes for income. Insurance coverage could come in handy if this income were to be interrupted, be it from water damage to property or other reasons.
Mobile home parks are vulnerable to extreme weather events compounded by layers of vulnerability. It’s a good idea to get mobile home park insurance that also covers loss of income due to the mobile home park being temporarily unusable.
Mobile home park investors have to secure specialized insurance as opposed to the traditional landlord insurance that covers single-family homes and apartments.
Finding the Right Insurance for Insuring Mobile homes
The best insurance solutions for mobile home parks involve specific answers to the concerns of individual owners. As such, searching for quotes online that address all your concerns can be a futile endeavor. It’s a good idea to speak to representatives and go through various insurance products they offer so you can compare the costs options.
While mobile home insurance isn’t required by law, foregoing coverage means putting yourself at risk of a large financial loss.
Make sure the type of insurance you choose covers the following:
Liability Protection: Because of the large number of people that spend time on your premises, you have an increased risk of liability lawsuits related to injuries sustained in common areas. Examples may include:
- If your tenants suffer medical issues from a carbon monoxide leak
- If someone were to slip and fall on your property resulting in serious injury
Ensuring your mobile home park insurance includes liability coverage. This provides a safety net in place to cover court judgments and insurance claims made against you.
Workers’ Compensation: With this insurance, you’re protected if an employee of yours is injured while on the job.
Business Property Coverage: The property piece covers all your owned buildings and contents as well as loss of rental income. The policy covers just about anything on your property, including:
- Underground utility lines and electrical distribution equipment
- Fences and signs
- Outbuildings, including storage and equipment sheds
- Office buildings and contents
- Roads and walkways
- Appliances, such as washers and dryers, if your park includes a laundry area
- Recreational facilities, such as swimming pools, playgrounds, and tennis courts
The business property coverage can also be customized to include dwelling coverage. If you own some of the rental homes in your park, this coverage will pay for damage to the mobile homes you rent out in the event of a covered loss. For mobile or manufactured homes, replacement cost coverage is the best possible option as it provides protection against the loss of the mobile home without any depreciation.
Protect Your Business Interests with the Right Liability Insurance
Finding mobile home park insurance at your typical insurance company may be a tall order. You want to work with a company that specializes in this type of insurance. An experienced insurance agent will customize your coverage based on your concerns and the unique needs of your park.
Are you ready to protect your investment with mobile home park insurance? Contact us today to go over your property and liability protection options.
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