This discussion centers on the 2011 edition of mobilehome endorsement MH 04 01 05 11. Differences with the prior edition are noted. (Differences, however, are primarily in format. Changes in coverage are in the HO 00 02 and HO 00 03 to which the MH 04 01 is attached.) Optional endorsements for use with it, plus eligibility and other rules contained in the mobilehome supplement to the ISO homeowners manual, are included.

Topics Covered:

Eligibility

Limits of liability

Endorsement MH 04 01

Policy conditions

Optional endorsements

Premium credits

Eligibility

The homeowners eligibility rule against the insuring of mobilehomes is deleted by mobilehome supplement rules, which provide that coverage under endorsement MH 04 01 may be written on mobilehomes designed for portability and year-round living. To be eligible for coverage, the mobilehome must be at least 10 feet wide and 400 square feet in area.

Homeowners eligibility rules applicable to HO 00 02 or HO 00 03 policies apply to mobilehome risks as well with respect to such questions as owner-occupancy, eligibility of non-occupant joint owners to insure their interest in the building and their premises liability exposure, and permitted incidental occupancies. Mobilehomes, however, are not eligible for insuring as residences held in trust. The rules specify that only one to four family dwellings are eligible.

An HO 00 04 05 11 may be written for a tenant (non-owner) of a mobilehome. For a review of these eligibility rules, see ISO Homeowners Program.

Limits of Liability

Rules of the mobilehome supplement specify minimum required limits of liability for each coverage of the policy that differ from those specified for a homeowners policy. Coverage A, which applies to the described mobilehome, attached structures and utility tanks, and permanently installed items such as appliances, cabinets, and floor coverings, must be written for at least the minimum limit provided in the homeowners base premium tables. The coverage B limit has the same relationship to the coverage A limit as in the homeowners program—10 percent—but if 10 percent of the coverage A amount is less than $2,000, the endorsement provides a minimum of $2000. This amount of coverage does not reduce the coverage A limit.

Often coverage C is written with a limit equal to 40 percent of the Coverage A limit, rather than the 50 percent specified for homeowners coverage, but this is not a requirement. Policy limits for coverages C, D, E, and F may be increased for an additional premium. Mobilehome supplement rules also permit an additional amount of insurance to be written on specific structures insured under coverage B. Mobilehome supplement manual rules permit the coverage C limit to be written for amounts down to 30 percent of the coverage A limit, for a premium credit, when there are no permitted incidental occupancies.

Loss of use coverage D is 20 percent of the coverage A limit.

Limits of liability for section II coverages (personal liability and medical payments to others) of mobilehome insurance are governed by applicable homeowners general rules, and accordingly, basic limits may be increased as specified for the homeowners program.

Endorsement MH 04 01

As noted above, mobilehome endorsement MH 04 01 may be attached to homeowners form HO 00 02 or HO 00 03. Except for the changes made to property coverage by attachment of the endorsement, the coverage provisions of the applicable homeowners form apply. Thus, section II coverage provisions for owners of mobilehomes are those found in the homeowners form to which the endorsement is attached.

 Definitions:

Paragraph B.11. "residence premises" is replaced by the following:

11.     "Residence premises" means the mobilehome and other structures located on land:

a.     Owned or leased by you where you reside; and

b.     Which is shown as the "residence premises" in the Declarations.

Analysis

Endorsement MH 04 01 changes the homeowners policy's definition of "residence premises" to refer not to a one to four family dwelling, but to "the mobilehome and other structures located on land owned or leased by" the named insured and where the named insured resides.