Insurance, it’s not the most exciting topic, but it’s essential you have the right type of cover for your new park home. Mobile Homes Insurance Service (MHIS) has been insuring park homes for more than 45 years and has put together some frequently asked questions to help you on your way…
Q: Do I need a specialist policy, or will regular home insurance cover me?
A: Yes, you absolutely need to have a specialist policy to insure your park home. Standard home insurance is designed to cover bricks-and-mortar buildings and will not insure park homes, which are usually built with a timber frame on a metal chassis. Be wary of buying insurance online as you may find price comparison sites and the like will offer quotations at your address without realising you don’t live in a regular house. If in doubt, it’s always best to give the insurer a call to double-check.
Q: The park owner has offered me a policy – should I go with it?
A: When buying your new park home, the park owner will often have an insurer they recommend that you use, and sometimes they can be a bit pushy about it! Park owners often get paid commission from the insurers they recommend, which may mean you don’t always get offered the best price. Don’t worry, you are absolutely free to choose your own insurer. Your site contract will usually insist on a minimum level of liability insurance and the park may wish to check your chosen policy is adequate. MHIS now includes £5m cover as standard with all its policies, which is more than enough for the majority of parks.
Q: How much should I cover my park home for?
A: There are usually two different types of cover available:-
New for old – where you need to insure your home for the cost of a brand new replacement.
Market value – where you insure your home for its current value on the open market.
It’s important to remember that you are just insuring the home itself and not the plot that it is on. It may be that your home is in a prominent spot on a picturesque park and, as such, it cost more to buy than a similar home located on a less desirable park. For insurance purposes, any increase in value due to the home’s location should not be taken into account when deciding how much to insure it for. The manufacturer will be able to provide you with the list price of the home and this is the amount you should insure for.
Q: What about delivery and resiting costs?
A: If your home is destroyed, it’s not just the cost of a new home that you need to consider. Additional costs for clearing debris of the old home, delivering the new home to your plot and connecting it to services can often costs thousands of pounds extra. You need to make sure that your park home policy specifically insures against these costs to avoid a nasty shock in the event of a claim. To give that extra peace of mind, MHIS policies cover these costs, free of charges, with every policy.
If you have any other queries about park home insurance, you can call MHIS on 01926 468777 and one of its expert advisors will be happy to put your mind at ease.
MHIS insures park homes, lodges and caravans on licensed parks and on private land, for both residential and holiday use, and will help you find the best policy to suit your needs.
As featured in the Residential Parks Guide 2022/23 issue of Park Home & Holiday Living