Manufactured Home Insurance in Kissimmee, FL, also colloquially referred to as homeowner’s insurance (HOI), is a highly specialized type of property insurance coverage that generally covers your private residence only. In this sense, home insurance is slightly different from general liability insurance since the latter protects you against lawsuits and other claims only. Please call us at 407-344-1228, or email us at [email protected] for any insurance needs you may have.
As a rule, some of the more common home insurance plans usually cover an extensive basket of services that may include not just the loss of the insured party’s home but also all of its contents. These may include household furnishings such as tables, carpets, wardrobes, beds and even electronic appliances. Moreover, should you acquire an all-encompassing policy, you will also be compensated for the loss of personal possessions including cell phones, watches, clothes and other articles of similar nature. Many home insurance policies also include a liability clause that can protect you from lawsuits just like general liability insurance.
- Example
There was a short circuit in your house that led to a massive fire. The inferno engulfed not only your home but also the entire neighborhood. Since the fire took place in your home, the neighbors collectively sued you for the damage caused to their property. Should you have a liability clause in your home insurance policy, the resulting expenses and claims will be borne by the insurance agency.
Some of the more important provisions of a manufactured home insurance policy include the following critical points:
- The ‘Guaranteed Replacement’ Clause
As the very term ‘guaranteed replacement’ implies, should there be an accident or natural disaster (or any event that has been covered in the manufactured home insurance policy), it is the direct responsibility of the insurance service provider to disburse funds. Furthermore, these funds will have to be sufficient enough to rebuild the destroyed residence to its original specifications. This is the single most important clause in any home insurance policy, while all other clauses may be add-ons to this one. If you sign a home insurance contract, you have to make sure that it contains at least this particular proviso. Here is how it works:
- The Hurricane Example
A hurricane completely destroys your house. The evacuation plan ensured that you and your family are perfectly safe. Your manufactured home insurance policy includes a proviso for natural disasters and insures you up till a maximum amount of $300,000. However, the total rebuilding cost of your house comes to $500,000 in total. Without the ‘Guaranteed Replacement’ provision, you will be forced to pay the remaining $200,000 on your own. However, ticking on this clause will mean that your insurance service provider will pay the entire bill for replacing your house.
- Additional Living Expense (ALE) Coverage Clause
Additional Living Expense is a very specific type of insurance coverage that is also a very important provision in any home insurance policy. Basically, ALE coverage denotes the fact that the insurance service will also provide the insured homeowner with the means of maintaining his customary living standards, as long as he has suffered a covered loss. However, here it is pertinent to note that such ALE coverage is applicable only to those variable expenses that are in addition to the insured living expenses.
- Example: Fire Damage
A fire has ravaged your house and now it is severely damaged. This means that you have been forced to find temporary accommodation at a nearby motel, while your home is in the process of being repaired. Since you no longer have access to a kitchen, you have to eat out all the time. The motel bills, as well as other ancillary expenses, will be the direct responsibility of the insurance service provider (as long as there is an ALE clause in your manufactured home insurance in Kissimmee, FL, contract). Furthermore, the insurance company will continue to make these payments till such time as your residence has been fully repaired or reconstructed and you can shift back again.
- Tenant Income Clause
This is also a part of an ALE provision in your insurance contract. Should a portion of your house be rented out to a tenant, then the loss of income will also be compensated by the company providing manufactured home insurance in Kissimmee, FL.
In a nutshell, ALE manufactured home insurance coverage protects the insured person/s for any incremental expenses that they may have to incur due to their unfortunate displacement from their original home.
- Building Ordnance Insurance (BOC) Coverage
Building ordinance coverage is defined by insurance companies as “insurance coverage that effectively covers the high charges that may result from repairing a damaged structure because of changes in building codes that may have occurred ‘after’ the construction of the structure.”
Such coverage usually helps the insured party to afford the many unforeseen expenses that might be incurred when his heavily damaged residence is repaired or rebuilt (as the case may be). This holds particularly true for most old houses that had been constructed early on in the last century.
It is extremely important to include a “Building Ordnance Insurance” clause when finalizing a plan for manufactured home insurance in Kissimmee, FL. Any structure that has been reconstructed or heavily repaired will have to be bought up to the exacting standards of modern local building ordinances. Not having this proviso included in your insurance contract will mean that all work on the reconstruction of your home will have to be stopped till you find a way around this issue
- Example
Mr. Smith lived in a pre-1970s era manufactured home. There was a short circuit and a portion of the building was burnt. However, the local town ordinance mandates the complete replacement of all the wiring of the house since the old and dilapidated electric lines will lead to similar incidents. Apart from that, all concealed plumbing and gas lines will also have to be changed to comply with the relevant building codes regarding both manufactured homes as well as their mobile counterparts. The insurance company is willing to pay for the reconstruction of the damaged portion, but not the complete replacement of all the wiring and piping of the structure since all the walls of the structure will have to be torn and rebuilt. If such building ordinance coverage has been included in the policy plan, the insurance company will be bound to foot the additional expenses till the local building control authorities declare the structure eligible for habitation.
As a general rule, this type of BOC coverage is not included in the standard home insurance policy contract offered by most insurance companies. You will have to ask them to add this clause. While it may lead to a slight increase in the annual premium rate, your entire policy for manufactured home insurance in Kissimmee, FL, will become useless if you do not include this proviso in your contract, especially if you live in a very old house.
- Replacement Vs. Cost Actual Cash Value
When deciding on the best possible policy for your home insurance needs, you should take a look at the two main types of compensation models and decide which one suits your needs the most.
- Replacement Cost Coverage (RCV)
This type of home insurance coverage generally takes into consideration the total replacement cost of any building or structure that may have been severely damaged or even outrightly destroyed due to any unforeseen mishap. In other words, this kind of insurance protection means that the holder of the insurance policy will be reimbursed with the amount required to replace his critically damaged or even destroyed home or any other sort of personal property.
- Actual Cash Value(ACV)
The ACV is a sort of manufactured home insurance in Kissimmee, FL, that is based on either the ‘initial cost’ or the ‘market value’ of the insured party’s house and personal property. It also includes the depreciation of the house and everything inside by taking into account the total number of years during which it has been used. In other words, the insured party will be reimbursed as per the ‘current’ value of the goods that he has lost.
Suppose Mr. John’s home was part of a fire incident and he lost all of his furnishings. If his manufactured home insurance in Kissimmee, FL, policy has been based on ACV, then his insurance service provider will pay for the replacement of his lost items at today’s cost minus the depreciation amount. Here depreciation is taken to mean the decrease in the total value of an item from its date of initial purchase till the time it has to be replaced, including the age-related wear and tear. Here, Mr. John’s 1994 model Honda Civic car (that was in the garage when his house caught fire) will be compensated with its value as of today. The insurance company will check and see the price of any 1994 model Honda Civic and pay him the amount. But if Mr. John’s manufactured home insurance in Kissimmee, FL, policy were to follow the replacement model, he will be compensated with the price at which the Honda Civic was sold in 1994.
- Creating a Check List of Options
As with all other kinds of insurance coverage, it is absolutely critical for you to create a checklist of multiple coverage options that you think are necessary for your manufactured home insurance in Kissimmee, FL. Always remember that the more boxes you tick, the higher will be your annual premium. And this is a fixed cost that you have to pay every year. This is why you should remove any unnecessary clauses, or you will end up paying for protection that you don’t need.
For example, if you live in a brand-new house, you will not need building ordinance coverage. Similarly, if you are well away from any coastal area, you may safely dispense with the hurricane clause. However, should your home be located on a geological fault line, then you should definitely consider ‘natural calamity’ insurance. All coverage options will be offset by the premiums that you are willing to pay per year.
- Finalize Your Checklist and Talk to Multiple Parties
In any case, once you have your final checklist in hand and have also finalized all of your requirements, it is important to check out multiple companies that offer manufactured home insurance in Kissimmee, FL.
After that, you should hold a detailed meeting with the insurance salesman to see what kind of deal you can get for your highly specific basket of mobile and manufactured home insurance products. Remember, any company that offers its own ‘as is’ plans only, should be avoided. If they cannot even tailor-make your own bespoke requirements regarding your home insurance package, they will almost certainly drag their feet in case you have to file a claim. And that is the very last thing you need when you are already destitute and don’t even have a roof over your head.
Apart from that, it is also important to understand that there is no hard and fast rule when it comes to premium rates. The home insurance industry is a highly competitive field and most service providers are quite eager to show flexibility regarding annual premiums. You can also show them your old policies and tell them that you have never filed a claim before. This means you might be entitled to a ‘no claims’ bonus, even if this is the first time you are working with this company.
- Conclusion
Now that you know all about the different kinds of manufactured home insurance in Kissimmee, FL, it is time to conduct your own due diligence before you settle on a policy. Lastly, you should always remember that home insurance is not a luxury but an absolute necessity in case the worst happens and you have nowhere to go. So don’t delay in acquiring a policy. Get it as soon as possible.
Please call us at 407-344-1228, or email us at [email protected] for any insurance needs you may have.