What Does Mobile Home Park Insurance Cover?
Mobile Home Park Insurance: Protect Your Real Estate Investment
Mobile home parks present an interesting insurance situation. Mobile homes don’t usually qualify for typical homeowners’ insurance due to their vulnerability to extreme weather conditions and because they’re manufactured in factories rather than construction sites.
While tenants aren’t required by law to purchase mobile home insurance, it may be a requirement of manufactured housing communities and even mortgage companies.
Another interesting facet of mobile home park insurance is that the land and park may be owned by one person, while the mobile home itself is owned by another. As an owner of a mobile home park, you’ll be responsible for insuring against situations that affect the park as a whole, and your tenants will be responsible for insuring their mobile homes.
Let’s look into mobile home park insurance and see how this type of insurance can protect your property and the people living there.
Landlord Insurance for Mobile Home Parks
Mobile home parks make for great real estate investments. However, several potential risks are involved with owning a mobile home park. Mobile homes have a hard time standing up to extreme weather conditions, which could result in business income interruptions.
Moreover, you may be held liable for any unexpected events that could take place in your park. For instance, if flooding caused a sewer issue that damaged the mobile homes at your park. There’s the added risk of accidents and injury.
For these reasons, it’s good business to get insurance coverage to protect your assets against perils such as fire, extreme weather damage, vandalism, and theft. You can find insurance products that provide:
- Coverage for loss of rental spaces income
- Property and liability coverage for common areas such as swimming pools, park lights, signs, and fences
- Coverage for mobile homes held for sale or rent
You may also want to get directors’ and officers’ liability coverage as you may be held liable for decisions made on behalf of your manufactured housing community. Not all insurance companies provide this coverage under their general liability policies, so you might want to look into additional coverage options.
Also, depending on the size of your mobile home park, you might need to hire employees to manage the grounds and even provide maintenance services. In this case, you should get workers’ compensation insurance to insure your employees against physical injuries and cater for any medical expenses that may arise. Another benefit of this insurance program is that it can protect your business even when you don’t have employees. It can cover any volunteers and independent contractors you bring aboard.
You can also customize your mobile home park insurance to cover situations that are specific to your particular park.
What If You Own the Park and the Trailers?
As mentioned, mobile home parks create a unique insurance situation. If you happen to own a mobile home park and some or all the trailers on the lot, you’ll need insurance coverage that covers you as the park landlord and park resident. Some insurance policies might even require separate coverage for each individual mobile home.
As a mobile home park owner, it’s also a good idea to be aware of any insurance coverage taken out by your tenants, as this could affect the type of insurance you need. Make sure to work with an insurance agency that can customize a coverage program to suit your business needs.
Here are some considerations you and your insurance company may need to consider:
- The number of spaces available for tenant-owned homes and park-owned homes
- Whether your property is categorized as a retirement mobile home park
- The use of city water and sewage
- The location of the property and the environmental risks in that location
- Your property’s level of handicapped accessibility
All these factors will be taken into account when pricing your mobile home park insurance coverage.
Get Mobile Home Community Insurance Today
Are you ready to protect your business with mobile home park insurance? Contact the Coleman Insurance Agency to go over your options. We provide a variety of coverage options to protect you and your investment. Contact our firm today to schedule a free consultation.
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