Some Lenders require that all borrowers provide proof of
physical damage insurance
coverage on their manufactured home
for the life of the loan. The coverage may be
referred to as a
"homeowners policy," a "homeowners policy with mobile
(manufactured) home endorsement" or simply a "mobile
policy." This insurance requirement
provides protection to both the borrower and the
Coverage Physical damage coverage should meet the following
Coverage must be a comprehensive, "all risk", as opposed to
"named peril" policy. A
policy that is "all peril" with a
specific deductible for "wind/hail," "earthquake,"
"hurricane" is the only acceptable exception to this policy.
Policies must provide:
Replacement cost coverage on all homes 15 years old or newer
(except in NC), actual
cash value coverage on homes 16 years or
older. For retail contracts, minimum
dwelling coverage equal to
the loan amount excluding prepaid finance charges. For
contracts, minimum dwelling coverage equal to the loan amount
prepaid finance charges, land, and land improvement
costs. The policy term must be
at least 12 months, except in the
state of Florida where the policy term must be at
months. The deductible for a "comprehensive" policy cannot
Flood coverage must be provided if the home is
located in a Flood zone. Verification
that the home is not in a
flood zone is required.
The policy and/or binder must meet the
Must be underwritten by an insurance company rated B+ or better
by the most recent
version of Best’s Key Rating Guide,
Property-Casualty, United States. Must provide
The following is acceptable proof of
Since it's possible to finance the first years premium, the
lender only requires a
binder showing coverage.
Prepaid insurance – A binder or application
indicating "Paid" (or a separate receipt)
and including at least
one of the following:
A statement similar to the following:
- "Coverage is bound" or "This is evidence that. . .insurance has
- The issuing agent's signature.
- Financed Insurance –
A complete application signed by the agent and indicating
explicitly that coverage is bound.
Gold Coast Mobile Home Sales
is not an Insurance Provider.