(November 2023)
The rate and premiums for a mobilehomeowners package policy
are published by the individual insurance companies. The premium is based on
the value of the mobilehome
unit itself, the type of coverage and the amount/type of deductible. Typically,
mobile/manufactured home rating is quite similar to site/stick-built home
rating. Companies commonly use territorial base rates, in units of $1,000, for
coverage.
Step 1. - Determine home's territory (based on geographical
location or zip code)
Step 2. - Locate the applicable territory's base rate
Step 3. - Determine property's dwelling (Coverage A) insurance
limit
Step 4 - Determine the multiplier - divide the selected insurance
limit by 1,000
Step 5 - Multiply the territorial base rate by the multiplier
Step 6 - Apply any surcharges/discounts
Step 7 - Add premiums for any additional coverages
Companies using the homeowners form generally provide both
physical damage and personal liability coverages for an indivisible or package
premium charge. Other companies writing the mobilehomeowners
package policy on an automobile physical damage approach include physical
damage coverage on the mobile home, some built-in personal effects and adjacent
structure coverage for a basic package charge, and then apply additional
charges for personal liability, medical payments, and other optional coverages
elected by the insured.
Typically, companies apply surcharges and discounts based on
the following:
·
Age
of mobilehome
·
Use
of wind/earthquake resistant anchoring
·
Use
of wind/earthquake resistant bracing systems
·
Existence
of fire-resistive construction
·
Use
of high, flat dollar or percentage deductibles
Other items meriting rating considerations
include:
Seasonal Occupancy may be allowed, at
the discretion of the insurer. When a particular insurer determines the
exposure to be acceptable, there is a 15% surcharge to the premium for extending
coverage to the increased hazard.
Protective Devices Credit is also
available if the insured has installed burglar alarms, fire alarms or automatic
sprinklers in the mobile home. A credit or reduced premium is allowed for each
of the items provided with the greater credit going to central station
monitoring systems for crime and fire versus local alarms.
Mature Occupant Credit is also
available for mobilehomes
owned and occupied by senior-aged residents who tend to be more stable and better
caretakers.
Tie-Down Credits are somewhat unique to
mobilehomes and recognizes
that mobilehomes are safer from wind or weather
losses if properly anchored to the site. Several types of tie-down processes
are used including the following:
·
Over-the-top and chassis
·
Over-the-top only
·
Chassis only
Over-the-top
and chassis is the best tie-down method and, accordingly, receives the highest
credit.
Multiple Accounts Credit is available
for customers who purchase and maintain more than one type of policy with the same
carrier.
Roof and Foundation Credits are
available for enhancements that the insured has made to those areas such as
modifying the roof to a composition shingle roof to give greater fire and wind
loss protection. Foundations also contribute to reducing property losses so
credits may be granted for adding an enclosed masonry foundation. Other types
of foundations will receive lessor credits as they are not as effective but
still decrease the possibility and severity of loss. A commonly used foundation
that qualifies for a premium credit is a mobilehome
that sits upon blocks or piers with full skirting that covers any open space
under the structure.