What To Look for in an Insurance Policy

For the most security, find a manufactured home insurance policy that, like all property and casualty policies:

• Pays for certain kinds of accidental damage to your home, belongings, or other structures. Coverage for this kind of damage is called physical damage coverage. Common examples of events that cause physical damage to your property include fire, wind, vandalism, and falling objects.
  
• Protects you against claims or lawsuits filed against you by people who are accidentally hurt on your premises or because of your activities. Coverage for these kinds of claims and lawsuits is called liability coverage. Claims might include medical expenses, lost wages, pain and suffering, and even property damage. Liability coverage also helps you pay for your defense in the event of a lawsuit. Liability coverage does not pay claims for injuries to you or the members of your household.

Policies are not all alike

Most manufactured home insurance policies provide these two basic kinds of coverage. But the amount and degree of coverage can vary dramatically from one policy to another. That's why it's so important to do your research. You need to figure out what coverages you want, and make sure your policy covers them.

Physical damage

There are two kinds of physical damage coverage. A "named peril" policy gives you protection for the causes of loss specifically listed - or named - in your policy.

A "comprehensive" policy gives you coverage for all causes of damage that are direct, sudden and accidental that aren't excluded in your policy.

As you might expect, the premium on a named peril policy will generally be lower. It's up to you to decide if you want the lower premium or the more complete coverage.

Liability

Liability coverage also can vary from policy to policy. You should be sure that whatever policy you choose provides enough liability coverage to protect you in case you're sued and a judgment is issued against you. That amount may be greater than what comes "standard" with a policy. It's a good idea to think about it now, and make sure you have all the coverage you want to protect yourself.

Other things to consider

Be sure to check the deductibles and coverage limits in a policy, too. A deductible is the portion of the physical damage loss that you agree to pay out of your own pocket. A coverage limit is the maximum amount a company will pay for a covered loss. Obviously, all other things being equal, a policy with lower deductibles and higher limits would be preferred. However, lower deductibles and higher limits can result in higher premium costs.

Then there are the intangibles. Things like claim service, company reputation and accessibility can make a big difference in which policy will give you real peace of mind. You want to make sure that the company behind the policy has the dedicated personnel and financial resources to be there for you at claim time.

Here's a look at Foremost's manufactured home policy.