In today's podcast we're going to be talking a little bit about flood insurance for mobile homes. We want to address a few things.
- What are some of the requirements when it comes to the national flood insurance program?
- Why are options so limited outside the national flood insurance program
- Why our premiums are so high for the amount of coverage you're generally getting.
So we're going to discuss those things today. Remember, if you've got questions about flood education, flood insurance, flood zone changes, then please visit our website, flood insuranceguru.com.
So let's talk a little bit about mobile homes today. First of all, the first thing we want to discuss is going to be the National Flood Insurance Program requirements when it comes to foundations for mobile homes. In order for a property to qualify for the National Flood Insurance Program it must meet one of the three conditions below.
- In accordance with the manufacturer's specifications when they're built
- In compliance with community's flood plain management, unless they're continuously insured with an NFP policy since 1982 at the same location
- Top or frame ties to ground anchors
So now let's talk a little bit about why are options so limited on mobile homes outside of the National Flood Insurance Program?
So when it comes to flood insurance outside of the national flood insurance program, other options are available. Some of these options have been available for the last 15 to 20 years. However the options are still very limited but why?
One of the reasons for this is also one of the same reasons that premiums are so high outside of the national flood insurance program. When mobile homes flood during a flood one of two things happen.
- Either they are washed away by water
- They are severely damaged
In both situations they generally will result in a total loss making flood claim payout amounts very high compared to the amount of premium that is taken for the risk. As a result many companies avoid insuring mobile homes against flood for this reason.
While there is a 3rd option for flood insurance but it is not recommended in most situations. This is allowing the bank that holds your mortgage to force place flood insurance on your mobile home. This can be bad for one reason the banks main goal is to protect their investment. So while they will offer coverage on the mobile home they probably won't offer flood insurance on any of your contents.
Today we wanted to talk about a few things
- The three conditions that must be met when it comes to the national flood insurance program
- We wanted to talk about what are the flood insurance options outside the national flood insurance program
- Why premiums for mobile homes are so high?