Insuring Your Mobile Home At Replacement Value

When shopping around for mobile home insurance, it is important to know what you’re getting. It’s also important to know the difference between Replacement Cost coverage and Actual Cash Value coverage.

While some companies offer Actual Cash Value coverage for your mobile home, Foremost Insurance  provides Replacement Cost coverage regardless of age of the mobile home. Replacement Cost coverage is the best coverage to have in the event of a loss to your mobile home. Here’s why.A mobile home, like most manufactured products, is a depreciable asset that loses value over time. What happens if your mobile home is lost due to a covered peril such as fire? An Actual Cash Value policy would pay based on the current replacement cost of the mobile home less the depreciation based on the age of the home. The amount of depreciation can be very significant.

Provided that you wish to replace the mobile home, a true Replacement Cost policy would actually pay the amount necessary to replace the mobile home with a newly manufactured one of the same size and quality. As you can see, this is much better protection than an Actual Cash Value policy.

Foremost Insurance offers two forms of Replacement Cost coverage. Foremost will allow a home, regardless of age, to be insured up to its replacement cost as follows:
• Insure to 100% of the cost of replacing the home without depreciation with a new dwelling of like kind and quality using materials and construction methods which are generally available.

To provide this form of coverage, it is important that we, as the insurance company, provide a good estimate of the replacement value of the home. For valuation we, refer to independent valuation guides such as NADA Manufactured Housing Appraisal Guide or Marshall & Swift/Boeckh.

Agreed Loss Provision
If the home is damaged beyond reasonable repair, Foremost will pay the Coverage
A – Dwelling Amount of Insurance.

So far, this discussion relates only to settlement for total losses. For partial losses from perils covered in your policy, such as sudden water damage from a a backup from sewer or drain in the home, The following Additional Coverage is added:

Water Backup of Sewers or Drains. We will pay up to
$5,000 for direct loss to insured property caused by water
or sewage which:
1. Backs up through sewers and drains; or
2. Enters into and overflows from a sump.
This coverage does not apply to damage which is caused directly or indirectly by the negligence of any of you, including but not limited to the failure to repair or maintain the sump pump.
A $250 deductible will apply to each loss.

Underwriting approval may be required when insured/applicant has experienced prior water damage losses.

Replacement Cost on Personal Property – Changes the settlement method to the lowest of repair cost, replacement cost or the Amount of Insurance shown on the Declarations Page, including Special Amount of Insurance for Certain Property.
Replacement Cost on Personal Property does not apply to:
• Antiques, fine arts, paintings and similar articles of rarity or antiquity which
cannot be replaced.
• Memorabilia, souvenirs, trading cards, collectors items and similar articles
where age or history add to their value.
• Items not maintained in good or workable condition.
• Items that are outdated or obsolete and are either being stored or unused.
• Scheduled Personal Property Coverage.

It is important to understand your insurance coverage, and our staff can help answer the questions you may have. Just call our office at 575-541-3963

Our goal is not only to save you money, but to make sure your mobile home is adequately insured.

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