Top 5 Mobile Home Park Liability Risks You Need to Know
Whether you own a mobile home park or a manufactured housing community, liability risks are present. As a property owner, finding ways to reduce these risks is key to protecting your investment. Consider these top liability risks and how to best respond to them.
1. Property Damage
As a mobile home park owner, property damage is a major liability risk you face. Property damage most often occurs from deferred maintenance. Cracked pathways, faulty electrical wiring, and poor plumbing can lead to hazardous conditions that can hurt residents and your investment. Faulty electrical work can cause a fire, and plumbing issues can lead to extensive water damage or mold growth if left untreated.
To minimize the risk of failed infrastructure and property damage, conduct regular inspections of the park and have a scheduled maintenance plan in place. These practices offer early detection of damage, allowing you to respond quickly.
2. Animal Incidents
Mobile home park insurance often specifies coverage requirements for pet ownership. As the owner of a mobile home park or manufactured housing community, you may have to accept responsibility for animal incidents that occur there, such as a dog bite.
When an incident like this happens, your insurance company may not cover damages and may even drop your coverage entirely. Having animal liability insurance is a great first step in reducing the amount of risk you accept, but it’s also important to hold your residents accountable. When drafting agreements with new residents, clearly define pet restrictions to ensure alignment with your insurance coverage.
3. Contractor Work
As a property owner, it’s important to choose contractors carefully. If they’re not handling things correctly, the risks could end up on your shoulders. If an electrical services provider performs a repair incorrectly, fire or other damage to the property can occur. If contractors are not insured, their mistakes can become your liability.
When selecting contractors, ask plenty of questions to confirm that they have the necessary licenses and insurance coverages to perform the work. The extra time taken during contractor selection can reduce considerable risk down the line.
4. Natural Disasters
Mobile home parks and manufactured housing communities are often more exposed to the elements than other housing developments. Natural disasters, such as tornadoes, hurricanes, and wildfires, all put these properties at risk. Ensuring you have proper insurance coverage for this type of risk is essential. These insurance policies also typically require a proactive response to certain natural disasters. For example, your policy might require all units to have hurricane-rated doors.
5. Bodily Injury
Bodily injury is often the result of property damage. Uneven surfaces or poor lighting might cause someone to trip and fall. These injury risks are also relevant in community areas, like pools or playgrounds. Keeping up with maintenance requirements can help prevent bodily injury and protect your investment.
Find the Right Insurance for You With Help From XINSURANCE
Finding insurance coverage is one of the first steps you can take to reduce your mobile home park liability risks. Choose XINSURANCE as your insurance partner to be matched with tailored insurance solutions designed specifically for mobile home park owners and managers. Request a quote for more information.