Empty-nesters: are you moving out and sizing down. Is mobile home insurance in your future? Here's what you need to know...

Empty-Nesters Moving On? A Smart Guide to Insurance for Your Mobile Home

A lot of smart seniors are downsizing these days. It makes sense. If you're saddled with a big mortgage payment for more house than you need, you can decrease your monthly expenses significantly by moving to a smaller home. And if you've built up a lot of equity in your home over the years (or even--lucky you--paid it off), selling it and moving into something smaller and less expensive can give a nice boost to your retirement nest egg.

More and more downsizing seniors are choosing a mobile home as their new roost once the nest is empty. It might be in an over-55 adult mobile home park. It might be set on several acres of peaceful rural countryside, far from the madding crowd...and from your so-busy pre-retirement life. Really, it could be anywhere. According to the Manufactured Housing Institute, mobile homes make up roughly 25% of all new residential structures in the United States and more than 10% of total housing.

Technically speaking, most of these towable, factory-built homes on a steel chassis are more accurately called "manufactured homes." The U.S. government's Department of Housing and Urban Development (HUD) defines a "mobile home" as one built before June 15, 1976. If it was built after that date, it's a "manufactured home" and can be certified as safe by HUD. But most people still call them mobile homes, and that's the term you most often see when looking to insure them. Look for mobile home insurance.

As you'd expect, cost is a major factor in the rapid growth of mobile home housing. A brand-new unit can cost as little as $30,000. You'd pay more than that for a big new SUV, and you can't even live in it!

Manufactured and mobile home insurance have different needs than regular housing because they're subject to some unique hazards. Since most are not permanently attached to a foundation, they've been known to blow over in heavy windstorms. New installation standards implemented by HUD in October 2008, including new types of anchoring, have made them steadier on their feet.

Mobile homes are also more susceptible to fire damage. In fact, pre-1976 models are considered a high fire risk because they were built using construction and safety standards that are now considered inadequate. That's why HUD won't certify these older models. If you want to buy an uncertified model, you might have a great deal of trouble finding financing. FHA will not finance them, and most other mortgage lenders follow their lead.

But you can, in most cases, insure them and at a surprisingly reasonable price. Affordable mobile home insurance is widely available.

Features to Look for in Mobile Home Insurance

Basically, you'll be looking for most of the same features you look for in standard homeowners insurance.

• Home and Structure Protection. This will pay to repair or replace physical damage to the structure of your mobile home. In most cases, it will also cover adjacent structures like a garage, a shed, terraces and fencing. The usual perils are covered--fire, wind, hail, theft, vandalism, falling objects.
• Personal Liability Coverage. This is the insurance that's got your back. If someone is hurt on your property--they fall off your terrace, slip in your tulip bed (never mind what they were doing in there), or overindulge at a party in your home then drive into a telephone pole--you could be liable for their medical bills, lost wages, even pain and suffering. Liability coverage will take that heat for you, up to the limits of your policy.
• Personal Property coverage. This covers the things in your home if they are destroyed, damaged or stolen. Certain high ticket items, like jewelry, antiques, expensive cameras and art, may need to be "scheduled," and put on a separate floater policy to be covered. Other things you might consider in choosing a mobile home insurance policy include:
• Additional Living Expenses. This will reimburse you for out-of-pocket living expenses if your home is destroyed or you have to move out while it's being repaired.
• Trip Collision Coverage. This will cover your home against damage while it's being moved from one site to another. Your regular insurance doesn't cover this.

There are companies that specialize in mobile home insurance, but many standard insurance companies will also write these policies. The amount of manufactured home insurance coverage you carry can vary widely. So can the price. By shopping around and comparing quotes from several companies, doing a side-by-side comparison of the options and rates, you'll end up with just the coverage you need at a price you can afford. You'll get the best mobile home insurance for your needs.
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Additional info: http://www.iii.org/individuals/other/insurance/motorhome/