If you are purchasing a land and mobile home package, one of the additional purchases you will need to make is homeowners insurance. If this is your first mobile home, then there are some aspects of homeowners insurance you may want to pay close attention to. Here are three of those things that you need to know and how they impact your insurance purchase.
Connection to Mortgage
The first thing you need to know is that, in most cases, your mobile home homeowners insurance will be part of your mortgage. What this means is that when you pay your mortgage, you will also be escrowing out your taxes and your homeowners insurance. With that in mind, you will need to take the time to fully understand what this connected insurance covers. You may find that it is very basic and does not cover all the instances you would want it to cover. If this is the case, you may have the option to get supplemental homeowners insurance from a third party insurance provider.
Required Natural Disaster Insurance
Depending on your location, your state may re quire natural disaster home insurance based on the weather in your area. For example, if you live in Florida, you may be required to obtain hurricane and flood insurance as part of your homeowners insurance. If you live in the midwest, you may be required to obtain tornado insurance. Make sure that you ask if the insurance you are obtaining covers these laws, especially if it is as part of your escrow package on the mortgage.
In many cases, if you are buy a formerly owned land and mobile home package, you will be getting a home that was part of foreclosure. This matters, when it comes to your insurance, because previous damage will likely not be covered. In fact, in most cases, any issues that occurred prior to your ownership will likely be noted and submitted to the homeowners insurance company. For this reason, you will need to have a walkthrough and inspection to ensure you know of any issues prior to closing. You can also have an insurance payout report pulled to show any previous issues and payouts prior to your ownership.
If you are ready to move forward with the insurance, make sure to write down any questions you have and discuss those at closing. This will help you determine if the insurance you are obtaining meets your needs and what steps you will need to take to obtain supplemental insurance if necessary.