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Should I insure my mobile home? Why buy insurance? You have a home, furniture, clothes and other belongings. Maybe you took out a loan to buy your home. What would you do if a fire or a natural disaster ruined or damaged your home and the things you keep in it? Could you afford to pay your home loan and also pay for another place to live? Could you afford to replace your furniture and clothing? When disaster affects you, insurance can help. What is insurance? An insurance policy is an agreement between you and your insurance company. The insurance company promises to pay to help repair or replace your home if it is damaged by certain kinds of hazards, such as a fire. Why do I need insurance for my mobile home? Your home is probably the most expensive item you own. If something happens to your home, your insurance company will pay to help repair or replace what was damaged. Maybe lightning strikes your home and starts a fire. Perhaps a storm knocks a tree onto your roof. If you didn't have insurance, you'd have to pay for all the repairs yourself. Could you afford it? When you buy insurance, the company agrees to pay a certain amount of money if your home or belongings are damaged by certain kinds of hazards that are insured by your policy. What types of things does a mobile home insurance policy cover? Most mobile home insurance policies cover:
What is property insurance? Property insurance covers accidental damage to your home. When you buy a policy for your home, it usually also covers things like storage sheds or detached garages and your belongings like furniture, clothing, dishes, TVs, and more. No insurance policy covers everything, but you'll want to check different policies. Look for one that covers most of the hazards you face. What is liability insurance? What if someone who doesn't live with you is hurt and it's your fault? It could happen at your home or somewhere else. Maybe a delivery person slips on a step at your home. Could you afford to pay the person's medical bills, lost work pay or legal fees if you were sued? Liability insurance helps you in two important ways: • If someone claims you caused their injury, this coverage helps you pay a lawyer to defend you against a lawsuit, if that person took you to court. • If the court decides you are to blame for the injury, this coverage pays for things like the injured person's medical costs, loss of work pay, pain and suffering and property damage. What happens when I have a loss to my home? When your home suffers damage, you need to call your insurance company's Claim Department. When you report a loss, this is called a “claim.” Your insurance company can tell you if the type of claim you are reporting is insured by your policy. If your home is broken into by vandals, or if anyone is hurt, always call the police or an ambulance first, before your insurance company. If your home is damaged, try to make temporary repairs to keep it from getting damaged further, if you can safely do so. For example, if your roof is damaged by a storm and rain is coming in through your roof, you could try to place a tarp over the damaged area until professional repairs can be made. When your home has minor damage, many insurance companies can take care of your claim right over the phone. If the loss is covered, they will send you a check through the mail to help pay for the damage. If your home has major damage, a person who works in the company's Claim Department may need to visit your home to look over the damage. They may be able to give you a check when they visit you. What types of hazards should a mobile home policy cover? Look for coverages for major and minor hazards like:
Other coverages you may want:
Helpful hint: Some companies include all these coverages in their policies. Others let you choose the coverages you want. Some companies don't offer certain coverages at all. Be sure to ask your insurance representative if your policy offers the coverages you want. How are claims settled? If you report a claim, or loss, the company will probably use one of these ways to settle your claim. • The amount of insurance, or “coverage limit,” in a policy is the maximum amount the company agrees to pay when you have a claim (minus applicable deductibles). • Replacement cost pays to repair or replace the damaged, destroyed, or stolen property without deduction for depreciation, with new property of like kind and quality. With this coverage, make sure your amount of insurance is high enough to cover the cost of replacing your home with a new one. • Actual cash value pays to repair or replace covered property with material of like kind and quality, minus depreciation. Or, in the case of a mobile home, replacement with a home of the same age and condition, and of similar kind and quality. • Agreed Loss Provision pays the amount of insurance listed on the policy's Declarations Page when a total loss of your mobile home occurs due to a covered peril. Other insurance terms you'll need to know What is a “premium?” The premium is the amount of money you pay the insurance company each year for your insurance policy. The typical premium amount you pay for an insurance policy is much less than what you would pay to repair or replace your damaged property yourself. What is a “deductible?” The deductible is your share of the cost if your home or belongings are damaged. You must pay your deductible before the insurance company pays its share of the loss. Most companies offer several amounts that you can choose as your deductible. A higher deductible usually means a lower premium for insurance. But you do pay more if you have a loss. For example, perhaps you choose a $250 deductible for your property insurance. Then, a windstorm tears some siding off from your home. The total cost to repair that damage is $1,000. You would pay $250, and your insurance company would pay $750. What is a “coverage amount?” It's important to choose the right amount of insurance, or “coverage amount” for your property. Some companies call this your “coverage limit.” This is the highest amount your insurance company agrees to pay when you have a loss, after you pay the deductible. One way to decide how much insurance to buy is to think about what your home is worth and how much it would cost to replace it and everything inside it. What is a “comprehensive” policy? Comprehensive protects you from most sudden, direct and accidental events other than those events that are specifically excluded. What is a “named peril” policy? Named peril coverage, on the other hand, applies only to the events that are specifically described in the policy. For example, if a fire causes damage to your living room sofa, named peril coverage would apply if “fire” was one of the listed covered perils. But say you were painting your living room and accidentally spilled a can of paint on your sofa, ruining it. There would be no coverage under a typical named peril policy, while there likely would be coverage with a comprehensive policy. How do I find the best insurance policy for my home? By comparing coverage and service, not just the cost of the policy. Know what you're paying for and what you'll get in case of a loss. Questions to ask your insurance representative before you buy a policy When comparing different insurance companies and policies, be sure to ask:
Foremost's AARP Mobile Home Insurance Program In 1989, Foremost was chosen by AARP to provide mobile home insurance to its members. We're honored to have been chosen because AARP's standards and expectations for a company are extremely high. They select only the best companies to provide programs for their members. For the AARP Mobile Home Insurance Program, those standards include:
Foremost has been an expert in mobile home insurance for over 50 years. Today, over 225,000 AARP members trust this program to insure their homes. And over two million people across the country trust Foremost to provide their insurance. How do I get a quote through Foremost's AARP program? To get a quote for a policy from the AARP Mobile Home Insurance Program through the Foremost Insurance Group of companies: Click here for an Online Insurance Estimate or Call toll-free 1-800-752-2461 Please be aware that your insurance contract is contained only in your policy, not in the information given on this Web site. Your insurance protection may vary from the coverages shown, depending on the standard coverages included in your policy and the optional coverages you purchase.
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