Having your own home away from home in the form of a mobile home or caravan has many highlights. However, it is imperative that the unit is insured adequately.
A few important factors which have a direct bearing on your mobile home insurance premium and how the risk is underwritten are as follows:
UNIT:
When considering mobile home insurance, it is important that the owner has all the details of the unit such as make, model, year and sum insured – as all of the aforementioned have a direct bearing on the premium.
Some makes or models carry a higher rating due to reasons such as the cost involved for replacement of parts and import costs. Manufacturing year is an important underwriting factor as for older units higher rates or special terms might apply.
As in all types of insurance, sums insured is one of the most important factors that affect the premium. However, it is vital that the unit is insured for the correct replacement costs – it never wise to under insure the unit for the sake of lower premium as in the event of a loss an average clause might apply.
OCCUPANCY:
The majority of mobile homes are used as personal holiday homes, but it could also be one’s main residence, rented premises etc. Occupancy is a factor that affects the premium and the terms of a mobile home insurance policy.
Most insurers have a set loading or charge for the unit to be let, and certain aspects of the policy, such as accidental damage, could be excluded from the policy.
If the unit is a caravan it is important that the insurer is made aware if the unit is being towed or a if it is a sited unit as towing cover might carry an extra charge.
PREVIOUS INSURANCE DETAILS/CLAIMS:
As with all types of insurance, claims history is a major factor in underwriting the risk correctly and affects the premium directly. As most insurers operate a no claims discount scale, the greater the number of claims-free years the lower the mobile home insurance premium will be and vice versa.
Although certain insurers might give an introductory discount, most companies will not allow a no claims discount if you did not have any previous insurance on the unit. Depending on the claim, additional premium loading will apply which in turn will increase the premium.
MOBILE HOME SITE:
Location i.e. where the unit is permanently kept or stored, affects the premium in the same way an area affects the terms on home insurance. Similarly, location of the site, security on the site and unit affects a mobile home insurance premium.
More importantly, details such as proximity of the unit to tall trees, sea, edge of a cliff should be confirmed to the insurer as it could result in a loading being applied depending on the risk it poses to the unit.
ADDITIONAL COVER:
Mobile home units may contain popular holiday hobby items such as bikes, surfboards etc. If the unit is a permanent residence, contents may include personal items such as jewellery, mobile phones, laptops etc.
It is very important to check with the insurer what items are covered and what is not. If any aforementioned items are kept at the unit, this must be disclosed to the insurers.
Since circumstances are not the same for all the units/clients, in certain cases, underwriters might agree to cover the above mentioned or similar items at an additional cost.
Hence, it is important that one reviews the mobile home insurance policy schedule thoroughly and reads the policy booklet to understand what is covered and what is not.
If a doubt arises as to a particular aspect of the policy it should be clarified immediately with the insurer and it should not be assumed that an item is automatically covered.
For more advice, contact OBF today or read our Mobile Home Insurance service page. Our team of experts are available to discuss how a comprehensive policy and mobile home insurance will secure your property.
