What is Home Insurance?

Learn what home insurance is it and why it is important. Check out this article.

At Clayton, we understand that buying a new home is a big deal, and we want to help you start out on the right track. Home insurance is a smart way to protect your family and your home in the event of a natural disaster, such as flooding, and other unexpected events. Below is some important information to help you get started on finding the right home insurance for you. 

why should you put home insurance

Home insurance. We know we all need it. But what exactly is it, and why is it so important?

Home insurance, also known as hazard insurance, protects from losses and damage to your property caused by perils, which are exposures to dangers or threats. Depending on what your insurance provider that you choose deems a peril, these can include, but are not limited to, fire, burglary, floods, earthquakes and more. Homeowner’s insurance protects your property, and it is not the same thing as mortgage insurance.

We all want to protect what's dear to us, but it's also important to comply with your mortgage lender's requirements. Most mortgage lenders require you to have home insurance and generally require proof that you have an active home insurance policy. The choice of home insurance providers, however, is always up to you. 

It is important to note that the homeowner’s insurance for your manufactured home might look a little different from a typical insurance policy on a site-built home. But don’t worry, you can find out more about how to protect your home below.

what home insurance covers

Can mobile homes be insured?

The short answer? Yes! However, your coverage may vary based on the policy and the plan you choose for your home. So, it’s important that you do your research ahead of time to ensure that you and your home are protected in case of any unforeseen circumstances.  Make sure and talk to more than one insurance provider to make sure you obtain the coverage that is right for you.

what is home insurance

When researching insurance for your mobile, modular or manufactured home, there are a few important factors to look for.¹

  • Physical Damage Protection
  • Replacement Cost or Actual Cash Value
  • Multiple Perils
  • Personal Liability Protection
  • Medical Payments to Others
  • Additional Living Expenses
  • Fire Department Service
  • Debris Removal

It's also important to double check that things like floods, earthquakes, and other natural disasters are covered by your insurance policy as well. What comes standard will vary by each insurance provider. Talk to your insurance company about what comes standard with their policies.  

1. “What is Mobile Home Insurance?” Learn First Blog. HomeFirst Agency. Accessed April 14, 2018. https://homefirstagency.com/what-is-mobile-home-insurance.cfm

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