Manufactured Home Insurance Glossary

Manufactured Home Insurance Glossary (with the most important terms highlighted)

Insurance language can be confusing. This glossary explains common manufactured home insurance terms in plain English. These are simplified explanations. Actual coverage depends on the wording, limits, endorsements, conditions, and exclusions in your specific policy.

Coverage Terms

Actual Cash Value (ACV)
The value of your home or belongings after subtracting for age, wear, and depreciation. An older item will usually receive a lower claim payment than a new one.

Replacement Cost
The estimated cost to repair or replace damaged property with new property of similar kind and quality, without subtracting for normal age or wear.

Extended Replacement Cost
Extra coverage above the dwelling limit shown on your policy. It may help if rebuilding costs are higher than expected after a covered total loss.

Dwelling Coverage — Coverage A
Coverage for the manufactured home itself and certain items attached to it.

Other Structures — Coverage B
Coverage for structures on the property that are separate from the home, such as a shed, detached garage, or certain other structures.

Personal Property — Coverage C
Coverage for belongings inside and around your home, such as furniture, clothing, appliances, and household items.

Additional Living Expense — Coverage D
Coverage that may help pay for temporary housing, meals, and other added costs when a covered loss makes your home unlivable.

Personal Liability Coverage
Coverage that may help protect you if you are legally responsible for injuring someone or damaging someone else’s property.

Medical Payments to Others
Coverage that may pay smaller medical bills when a guest is injured on your property, even when you are not legally at fault.

Deductible
The amount you pay toward a covered property claim before the insurance company pays its part.

Coverage Limit
The most the insurance policy will pay for a certain type of covered loss, subject to the policy terms.

Premium
The amount you pay for your insurance policy.

Policy Period
The dates when the insurance policy begins and ends.

Effective Date
The date insurance coverage starts.

Claim and Loss Terms

Covered Loss
Damage caused by something the policy covers, such as certain fires, wind damage, theft, or sudden water damage.

Peril
An event that causes damage, such as fire, wind, theft, or vandalism.

Exclusion
A type of damage, property, person, or situation that the policy does not cover.

Depreciation
The loss in value caused by age, wear, condition, or becoming outdated.

Total Loss
Damage so serious that the home cannot reasonably be repaired or the repair cost is close to or greater than its value.

Partial Loss
Damage to only part of the home or property.

Claim
A request asking the insurance company to pay for damage or injury that may be covered by the policy.

Loss History
A record of insurance claims or losses connected to a person or property.

Debris Removal
Coverage that may help pay to remove damaged materials after a covered loss.

Ordinance or Law Coverage
Coverage that may help pay the added cost of meeting current building codes when repairing or replacing damaged property.

Demand Surge
A sharp rise in labor and material costs after a widespread disaster because many people are rebuilding at the same time.

Underinsured
Not having enough insurance to fully repair or replace your home or belongings after a major loss.

Policy Documents and Changes

Declarations Page
The summary page of your policy. It normally shows the insured property, coverage limits, deductibles, policy dates, and premium.

Endorsement
A written change to the insurance policy that adds, removes, or changes coverage.

Application
The information provided to the insurance company so it can decide whether to offer coverage and how much to charge.

Binder
Temporary proof that insurance coverage has started while the full policy is being prepared.

Nonrenewal
A notice stating that the insurance company will not continue the policy after its current expiration date.

Cancellation
The ending of an insurance policy before its normal expiration date.

Policy Lapse
A break in coverage, often caused by missed payments or failure to renew the policy.

Underwriting
The process an insurance company uses to review the home, applicant, claims history, and other risks before offering or continuing coverage.

People and Interests

Named Insured
The person or entity listed as the main insured on the policy.

Additional Named Insured
Another person who owns and usually lives in the home and is added to the policy as an insured.

Additional Insured
A person or organization that receives certain coverage rights under the policy because of an interest in the property.

Additional Interest
A person or organization connected to the property that may receive policy notices or certain claim payments.

Lienholder
A lender or other party with a financial interest in the home because money is still owed on it.

Mortgagee
A bank or lender that has loaned money secured by the property.

Certificate Holder
A person or organization that receives certain policy notices but does not automatically receive insurance coverage.

Home and Occupancy Terms

Manufactured Home
A factory-built home constructed on a permanent chassis. Homes built after 1976 must meet federal HUD building standards.

Mobile Home
A factory-built home constructed before 1976 on a permanent chassis.

Park Model Home
A smaller factory-built recreational unit on a single chassis. It generally has no more than 400 square feet of living area.

Modular Home
A factory-built home transported in sections and installed by a builder. It is built to state or local building codes rather than the federal HUD manufactured home code.

Primary Residence
A home used as the owner’s main place to live.

Secondary or Seasonal Residence
A home used only during part of the year, such as a winter or vacation home.

Owner-Occupied
A home that is owned and lived in by the person listed on the policy.

Rental Property
A home owned by one person and rented to someone else.

Tenant or Renter
A person who lives in the home but does not own it.

Vacant
A home with most furniture and household items removed and no clear plan for someone to live there soon.

Unoccupied
A home where no one is currently living, but furniture and belongings remain and the owner plans to return.

Additional Coverages

Water Backup Coverage
Coverage that may help pay for damage when water or sewage backs up through a sewer, drain, or sump.

Earthquake Coverage
Separate or added coverage for certain damage caused by an earthquake. A special deductible usually applies.

Scheduled Personal Property
Extra coverage for valuable items that are individually listed on the policy, such as jewelry, art, coins, musical instruments, or collectibles.

Fire Department Service Charge
Coverage that may help pay a fee charged by a fire department for responding to a covered fire.

Loss Assessment
Coverage that may help pay certain assessments charged by a homeowners association or community after a covered loss.

California FAIR Plan
A California insurance program that provides basic property coverage for some homes that cannot obtain regular property insurance.

FAIR Plan Companion Policy
A policy designed to work alongside a California FAIR Plan policy by providing some coverages the FAIR Plan does not provide.

Important Reminder

These are simplified explanations. Actual coverage depends on the wording, limits, endorsements, conditions, and exclusions in your specific policy.