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Almost all manufactured home financing companies require mobile home insurance before a fund the deal. And even if it's not required, home insurance can save you from being responsible for thousands of dollars in repairs after a fire or hurricane. Unfortunately, this step often holds up the closing process. It can be challenging to find insurance in certain states. Learn more about how to find a reliable insurance company and be a step closer to closing your deal.
Understand the Need for Insurance
Before you grumble about needing to obtain insurance, you should realize all the problems you can encounter as a mobile homeowner. If there's a hurricane or tornado, your home could be in danger. The same is true of vandalism or an accident.
If you don't have insurance, you're the one responsible for damages from an accident. So, let's say a hurricane completely destroys your home. Without insurance, you would have to find a way to replace the building out of your own pocket. After Hurricane Ian, hundreds of Floridians experienced this. They were homeless because they couldn't afford a new home or repairs on their old one. Some individuals who financed their homes still owed their mortgage payments but had no home to show for it.
With insurance, you can go through a claims procedure. Eventually, the insurance company gives you a payout to repair or replace your home. It's a way to protect your home and your investment.
How to Find Mobile Home Insurance
There are two ways you can find insurance for your mobile home. First, you can research companies online. When you do your search, make it state-specific. A company that insures homes in Virginia probably won't insure homes in Florida. You should call multiple companies and get at least two quotes.
If you don't want to spend hours on the phone, you can call up a mobile home insurance broker. A broker asks you for the specifics of the home and its location, and then they reach out to their network of insurance companies for quotes. They collect quotes and then tell you about your options.
Whichever method you choose, make sure the insurance offers coverage that's right for you. Additionally, check in with the manufactured home financing company to make sure the policy meets the minimum requirements. Every lender could have different requirements.
Avoid Scams
While you're researching insurance companies, be on the lookout for scams. There are some great insurance companies out there, but there are also plenty of scammers. Before you pick a company, thoroughly research its reputation.
Always check a company's website and reviews. If you know people who own mobile homes, ask them if they know of the company you're considering. Referrals and testimonials go a long way.
What to Look for in Mobile Home Insurance
You shouldn't scramble to find an insurance provider. Rather, you should take the time to verify that the insurance policy is right for you. Here are a few factors to consider:
Coverage Options
Begin by assessing the coverage options that the company offers. Standard coverage should include protection against fire, theft, vandalism, and liability in case of accidents on your property. Additional coverage might include protection against natural disasters, such as hurricanes or floods, depending on your geographical location.
Financial Stability
The financial strength of an insurance company matters. This ensures that the company will have the resources to fulfill claims when the need arises. Look into the company's financial ratings and reviews from reputable sources to gauge their stability.
Customization
Seek out insurance providers that offer the flexibility to customize your policy to suit the unique features of your mobile home. Each mobile home has distinct characteristics, and a one-size-fits-all approach might not cover your specific needs.
Deductibles and Premiums
Compare the deductibles and premium rates offered by different companies. While opting for a lower premium might seem enticing, it's better to find a balance between affordability and the level of coverage you receive.
Customer Service
Access to prompt and efficient customer service is critical, especially when you need to file a claim. Research the company's reputation for customer service by reading reviews and testimonials from policyholders.
Claim Process
Understand the company's claim process. A transparent and straightforward claims procedure can alleviate stress during an already challenging time.
Legal and Regulatory Compliance
Ensure that the insurance company you're considering is licensed to operate in your state and complies with all legal requirements and regulations.
Get Ahead of the Manufactured Home Financing Process
If you're applying for financing for a mobile home, don't sleep on the insurance. Start looking into the cost of insurance for your home and be ready for closing. This is one of the steps in the manufactured home financing process that you can take to speed things up. If you have any questions about financing or about how our process works, contact us today.