As the owner of a mobile home park or manufactured home community, having it properly insured is critical, and one of the first things that J & H Asset Property Management reviews with a new client. Insurance policies may vary for mobile or manufactured homes, but we’re going to review some key points and policies for you to keep in mind.
A standard insurance policy for a mobile home community generally features Dwelling coverage, which can help pay for the repair or replacement of structures due to events such as:
- Fire and lightning
- Falling objects
- Wind and hail
- Weight of ice and snow
- Burst pipes
Other Structure Coverage pays to repair other structures such as an office, clubhouse, gym, outdoor recreation areas, fences, walls, utilities, and other common areas in your park if they are damaged by an event your policy covers.
Business Personal Property (BPP) coverage insures items that the owner has inside the buildings, such as furniture and fixtures, gym equipment, pool and card tables, and any other interior items.
Personal Liability insurance pays if a resident or visitor is hurt on the property and sues you. Personal Liability can also cover related legal expenses. The experienced team at J & H Asset Property Management can help you determine how much liability insurance you need, but a general rule of thumb is getting at least enough to cover your net worth.
Depending on your insurance company, your policy may include other coverage, such as additional living expenses to help provide a hotel in case of a fire or weather-related damage that makes the homes and community buildings temporarily unavailable.
As with any insurance policy, there are limits to your coverage that may include:
- Flooding. If your park is in an at-risk area, consider buying separate flood insurance.
- Earthquakes. Again, if your community is in a seismically active region, you are encouraged to have separate earthquake coverage.
- Insect or animal infestation. Insurers consider this prevention as part of regular community maintenance.
Another policy that J & H assists clients with is Employment Practices Liability/Third Party Liability Insurance. As a benefit of being managed by J & H, any property managed by the company is covered under J & H’s Employment Practices Liability Insurance and Third-Party Liability Insurance Policy. (Limits do apply, and park owners share in the limits with all properties managed by J & H).
Employment Practices Liability Insurance, known in the industry as EPL insurance or EPLI, provides coverage to employers against claims made by employees who allege Harassment or
Discrimination (based on sex, race, age, or disability), wrongful termination, wrongful discipline, negligent evaluations, and other employment-related issues, such as failure to promote.
Third-Party Employment Practices Liability refers to claims made by nonemployees, usually customers, who allege that an employee engaged in wrongful conduct, typically sexual harassment, or discrimination. In the absence of a specific endorsement for third-party claims, EPLI forms do not cover the exposure.
There are many factors that will play into insurance costs, including the location and age of the community, the cost of replacement or repairs in your specific area or for your specific community, your own claims history, and the coverage and limits options you choose.
Not all insurers offer mobile home or community insurance coverage, but we are happy to review your needs and help you find the perfect provider or a third-party affiliate to meet your specific insurance needs.