It can be difficult to arrange insurance on park homes up for sale, particularly if they are unoccupied or if the previous insurance has lapsed, possibly due to the death of the previous owner.
Paul Baker Insurance Services receive many requests to insure such risks, often referred to us by a competitor, and we will always do our best to provide cover. If the home is still in permanently occupied the risk is quite straightforward and generally speaking our normal underwriting criteria will apply. For older homes, pre 1995, we will require a full set of photographs of the home and in some cases sight of a survey. Newer homes should be insurable on a new for old basis, without the need for any additional information.
Often however homes up for sale are also unoccupied, usually following the death of the owner. These homes are more difficult to insure, empty homes are not accepted by many park home insurers. We are usually able to arrange limited cover for such homes which will enable the owner to comply with the site requirements to insure the property, however certain exclusions will apply.
The exclusions will include loss or damage caused by the escape of water, loss or damage caused by malicious damage or vandalism, theft unless involving forcible and violent entry to or exit from the home and loss or damage caused by accidental damage. An additional big difference is the basis of cover. Normally homes are insured on a new for old basis but when the home is unoccupied and up for sale cover is provided on an indemnity basis meaning that in the event of a claim a deduction is made to reflect age, wear and tear and not new for old replacement.
A further point to bear in mind is that often these homes may be sold during the policy year, when this happens there will be a partial refund of the premium and tax, but not the administration fee or the commission element of the premium.