March is the beginning of the heavy storm season in much of the country. Around 70% of all tornadoes and hailstorms in the United States happen between March and June. In the interior United States, May is the most destructive month for storm damage. With the storm season starting, now is the ideal time to confirm you have the insurance coverage you need to protect your property and business.
What Your Policy Covers: Insured Property
To determine what you have insured, review your insurance policy. It will generally list every building or improvement that is insured. If you know you have some improvements that aren’t listed, call your agent to discuss adding them and the potential costs. If items such as Utility Infrastructure, Gates/Fencing, Well Houses, and Pumps aren’t specifically listed in your policy, don’t assume they are covered. There likely is no storm damage coverage for them.
Policy Example
New Trees, MHC Property Coverage Listing:
Office Building $200,000 Contents $30,000
Pool Building $50,000 Contents $10,000
Loss of Income $800,000
Total Coverage Limits: $1,090,000
Actual properly valued New Trees, MHC Property, and Improvements on Premises:
Office Building $250,000 Contents $30,000
Pool Building $80,000 Contents $10,000
Loss of Income $800,000
Above-Ground Utility Infrastructure $100,000
Three Park-Owned Rental Homes $210,000
Well House/Pump $60,000
Needed Coverage Limits: $1,543,000
Insured Values & Actual Replacement Costs
Ensure that your insured values and coverage limits reflect today’s actual construction and repair costs. Many of us significantly underestimate repair and rebuild costs. If you have finished buildings insured for less than $200/ft or unfinished sheds, etc., insured for less than $50/ft, these are underinsured warning signs. Many people assume “replacement cost” coverage means that you will receive the actual replacement cost, but the policy limit is the maximum payout in the event of a total loss. For example, if your office building is destroyed in a storm and is listed on your policy for $200,000, but the actual replacement costs are $250,000. You will have to pay the $50,000 difference out of pocket.
If any of this is unclear, call or email your Mobile Insurance agent to discuss your coverages and insured values.
For more tips on managing your manufactured home community and reducing risks, visit our resources page here and learn more in our blog here.
