Reader’s Question:

We recently purchased our first mobile home insurancepolicy in Arkansas. At the closing, our attorney suggested we consider an umbrella policy. Is he being melodramatic? What are your thoughts?

Erin

Little Rock, AR

Congratulations Erin!

Investing in your first mobile home insruance is a big step. Your lawyer is probably being cautious and has your best interest at heart. A typical homeowners policy generally has liability coverage with a limit of $100,000.00 per incident. As you probably know, mobile homeowners insurance covers accidents involving you and your family, your house guests and your pets. That’s a fair amount of exposure.

Suppose there is a household accident resulting in a personal injury. The purpose of the umbrella added to your homeowners insurance is to deal with today’s ever-rising medical cost and increasing legal fees and unforeseen, catastrophic accidents. Many homeowners derive peace of mind with the umbrella. The premium cost is reasonable and compliments your homeowners policy nicely.

You should discuss this additional coverage with your mobile home insurance agent in rkansas, who will help you determine a recommended amount of coverage and premium cost. Added to your homeowners policy, this umbrella will protect you, your home and your family. As you prepare to enjoy your new home, please take the time to read and understand all the coverage and conditions explained in your homeowners insurance.

Need mobile home financing?  What are the best places to get the best rate on a mobile home loan?

1. Your local credit union - if you don’t belong to one join one. Some credit unions are open to anyone who lives, works, attends church or school in the area.  Joining a church to get into a credit union who gives super low rates on credit cards, checking accounts and mobile home financing might not be a bad idea.
2. Your local bank if you don’t or can’t join a credit union is the next place to inquire.  If you already have a checking or savings account with your bank you might be eligible for lower rates on mobile home financing. Don’t be affraid to ask for a lower rate than what is posted publically especially if you have been a long time customer in good standing.
3. Use the Internet and get 5 quotes online. Then use each of those quotes against each other. Call the first company and tell them you got a better quote from company X and want to know if they would beat their rate. Then call company X and tell them company Y gave you a better rate and give them an opportunity to beat that new rate.  This takes some time, but it REALLY works.  Keep doing this will all 5 companies until you have reached the best quote you are going to get.

Do you have poor credit and need to get a loan on your mobile home?  Don’t worry all hope is not lost. here are a few things you can do to get a better rate on your mobile home loan.

1. Contact the credit reporting agencies and get the latest copy of your credit report and credit score. Make sure all information (good and bad) is correct and factual
2. Once you have determined your credit report is accurate - figure out which is the companies that is reporting badly about you, contact that creditor directly and work out a payment plan with them….they will usually do this if they feel you will make an effort.
3. Have a garage sale - Most people can sell items they really don’t need and come up with quick cash. use this cash to pay off creditors and get them to remove the information they have posted about you or at least make amendment to your report that you made a significant payment recently.
4. Do a real good job of searching your personal expense items, going over a budget to see what expenses you can cut or reduce and come up with cash. Can you live without a cell phone, cable or satellite TV for a few months while you SAVE this cash you would normally spend?  Pay off your creditors!
5. Most people can reduce their monthly spending by 20% if they really make up their mind to do so. This 20% can be used as a down payment on the mobile home loan or used to pay off existing debt. If you spend $1,000 a month on expenses (utilizes, rent, car, food etc) 20% would be $200….in 6 months this would be $1,200 which is a nice downpayment on a mobile home loan or to pay off exisiting debt….and it’s easy to do!

Are you over paying for insurance on your mobile home?  Most insurance carriers either do not offer mobile home insurance or if they do they charge an arm and a leg for it…as you know.

What can you do to lower your insurance premiums?

1. Shop around….ya I know, that is what you are doing now.
2. Combine your coverages with one carrier….move your auto, life, health etc to one company
3. Carry a high deductible amount…the higher the better. You really only want to cover your mobile in the case of a total loss anyway. You would not want to make a claim less than $1500 if you can help it.  Your premium will cut in half just by raising your deductible.
4. Ask about discounts - adding a security light outside, adding covered parking outside, moving the structure away from trees etc. could result in a discount in your premium.
5. Pay down what you owe on the mobile….if the insurance company sees you own a large part of the structure they are more likely to give you a discount on the premium.