What is park home insurance?
Park home insurance is an insurance policy that covers your park home, as the name suggests. Because park homes are designed differently from traditional residences, you won’t be able to insure one with a conventional homeowner’s policy.
Park home insurance can protect your home and its contents in the event of a range of risks, such as fire, theft or vandalism. In addition, park home insurance can also offer public liability cover to provide you with protection if someone is injured or their property is damaged as a result of something that happens in your park home.
What is a park home?
A park home is a prefabricated, pre-built home designed for the specific purpose of being used as residential accommodation on land that has been explicitly zoned for this type of use.
Park homes are also known as mobile homes or factory-built homes. They are not to be confused with travel trailers, campers or RVs, which are vacation vehicles used for camping and other outdoor recreation activities.
Park homes are an uncommon sort of homeownership because they do not include the land under the house. Most park homeowners hire a pitch from a site owner instead of owning the ground their home sits on.
Park houses are defined as “mobile homes” by the Mobile Homes Act 1983. This legislation sets out the requirements for site operators, park homeowners, and holiday homeowners. It also provides for the inspection and management of park homes.
What is covered under park home insurance?
If you are a park homeowner, it is important to understand what is and is not covered under your park home insurance policy. Many people assume that their policy will provide coverage for any damage or loss they experience, but this is not always the case. Additionally, be sure to update your policy if you make any changes to your home or its contents. By doing so, you can ensure that you are fully protected in the event of a loss. Here are some of the basics that your park home insurance should cover:
Personal liability cover
Liability park home insurance can cover lawsuits brought against you because of damage or property destruction you cause to others. It also covers the medical costs for visitors injured while visiting your property. For example, if a visitor slips on your wet floor and hits their head on your countertop, your liability coverage may be able to assist in the payment of medical costs. If your friend files a lawsuit against you, it will cover your legal defence, as well as any reimbursements laid out in the court verdict.
New for old cover
“New for old” cover in park home insurance policies means that the insurer will replace any damaged items with brand new equivalents, rather than repairing or compensating the policyholder with a percentage of an item’s original value. This is a valuable feature of park home insurance policies, as it ensures that policyholders are not left out of pocket if their property is damaged or destroyed.
Malicious damage and theft cover
This means that if you ever need to make a claim because someone has either damaged your home or stolen property from within it, then all of the costs will be covered.
As long as the damage is caused by conditions outside your control – such as rain, flooding, lightning strikes, snowfall and so on, then this type of insurance should cover it.
Loss or damage by subsidence
This cover can provide financial assistance to repair foundations and floors when these have been damaged by soil subsidence, that is where the weight of the building has caused or contributed to movement in the ground beneath.
You cover should provide compensation for alternative accommodation or living expenses while your property is being repaired following an accident or any weather event that prevents you from living in it.
This usually covers the cost of getting legal advice and assistance if you need to make a court claim against someone or defend yourself from a claim made against you.
Content cover in park home insurance refers to protecting your belongings inside the home. This type of coverage can help protect your furniture, electronics and other personal belongings in case of damage or theft.
Damage not covered by park home insurance
Below is a highlight of damage not covered under park home insurance:
- Water damage
- Wear and tear
- Pollution damage
- Damage caused by rust or mould
- Damage from pests, such as rodents or insects
Tips for Buying Mobile Home Insurance
These are some simple tips to keep in mind when buying insurance for your mobile home:
- Regularly check your mobile home insurance policy. In doing so, you can guarantee that your coverage remains appropriate for your needs and that it is keeping up with increasing construction costs through inflation.
- Create a list of the items in your mobile home and revise it once a year. Having a house inventory to hand can speed up the claims process. It will also guarantee that you have adequate coverage as you acquire new possessions.
- Install smoke detectors in your mobile home, which may warrant a discount on your premiums.
- Ensure that improvements to your home, such as outbuildings and spare rooms, are accounted for in your coverage.
- Review insurance providers’ customer service and claims handling practices to ensure you will be satisfied with their performance if a claim arises. Do not forget to ask about their process for filing and settling claims.
Is park home insurance compulsory?
No, park home insurance is not compulsory. However, it is highly recommended to protect your investment.
There are a number of risks associated with owning a park home, such as severe weather damage, vandalism and theft. Without proper insurance coverage, you would be left responsible for the cost of repairing or replacing your home in the event of any damage or losses.
That’s why it’s essential to work with an experienced Park Home Insurance broker who can help you find the right policy at the best price possible. Contact us today to learn more about our park home insurance policies and get a free quote.
How much does park home insurance cost?
There is no definitive answer to this question because it depends on a variety of factors, including:
- Location. In terms of site, a park home in a high crime area would typically have higher premiums.
- The square footage of the insured home. A more extensive mobile home will cost more to restore if destroyed, so insurance companies will charge more for bigger homes.
- Age. Because older park homes have generally seen more wear and tear, they’re considered a more significant liability than modern models.
- Value. The higher the value, the more it will cost to cover.
- Safety devices. If you install smoke detectors and alarm systems in your mobile home, you may be able to lower the amount of your Park Home Insurance.
How can I reduce the cost of my park home insurance?
If you’ve already settled on acquiring a park home insurance policy, here are a few things you can do to reduce the cost of your premium:
- Inquire about discounts and additional coverage. Make sure you take advantage of any discounts available to mobile homeowners. You may be eligible for price savings if you pay upfront in a lump sum, settle online, or put in safety or security measures.
- Inspect and maintain your park home. Regular inspections will ensure that you are aware of any damage or problems with your home, hopefully before they get worse or cause a more severe problem. Addressing these early on may reduce the likelihood of a claim being made in the future. If you have to make regular claims, there’s a chance your premiums will rise.
- Live in a safer area. Insurance companies have access to information about where their customers live, including how safe a place is when compared to other parts of the country. If there are certain areas that insurers deem to be higher risk because they are less secure, then premiums may end up much higher than others.
- Bundle mobile home insurance with your other policies. In some cases, purchasing mobile home insurance can actually save you money on your other policies. For example, many car insurance companies offer discounts if you purchase additional coverage for your mobile home. This can help reduce the overall cost of having multiple policies at once.
Is park home insurance different from traditional home insurance?
Park home insurance is different from traditional home insurance because park homes are built using different construction methods and materials. Park homes are made with lightweight materials, such as fibreglass and plywood, making them more vulnerable to damage in calamities or extreme weather conditions. That’s why a park home is not covered by standard home insurance. You’ll need to purchase insurance explicitly designed for a mobile home.