Insurance for park homes & mobile homes

How can I get park home cover through Pikl?

There are two ways to get cover with Pikl: 

• I just need cover for short-term guests: If you already have your main park home insurance covered elsewhere and just need additional cover for renting out to guests, click on the ‘Get a quote’ button to get covered in minutes.
• I need cover for my main insurance as well as cover for guests: Our expert team can look at providing cover for both short-term rentals and regular park home insurance in one package. Contact our team on 0800 254 5171. Our open hours are Monday to Friday, 9am to 5pm (excluding bank holidays).

What is park home insurance?

Whilst park homes or mobile homes are typically lived in as permanent residences, these types of properties are usually built in factories. Park home insurance, otherwise known as insurance for mobile homes, caters to these types of buildings. This type of cover is therefore different to normal home insurance policies. In addition, there are other differences to consider:

• Location: Unlike regular homes, a park home is usually situated in a residential park or community area.
• Use: Park homes may be lived in as a permanent residence, but in some cases may also be rented out to guests. 
• Construction: As park homes are created in a factory, they are made with very different materials to a regular home. They may depreciate in value over time as well.
• Cover: There are lots of similar cover options when it comes to park home insurance, but they will be tailored to the specific needs of park home owners. The amounts covered are often less than regular home insurance, and there may be different needs for certain types of optional extras.
• Premium: The insurance premium for your park home will be based on your demand and needs as a park home owner. This means that park home insurance premiums may be different to regular home insurance quotes. 

What does park home insurance cover?

Insurance for mobile and park homes offers similar cover features to a regular home policy, with some minor differences. The key covers features can be found below.

Structural property cover

Similar to static caravan insurance, park home insurance can cover the market value of the structure of the property. This can include: 

• A Steel chassis.
• Timber frames.
• Exterior walls such as cladding.
• A roof.
• Insulation.
• Interior fixtures and fittings. 

Covering the cost of replacing the structure will likely be the biggest cost to consider when it comes to insurance, so it’s important to get this right. Here are some key considerations:

• Market value: To be fully covered you will need to know the market value of your park home, which will be influenced by the make and model. Park homes tend to be bigger than static caravans. Replacing them could come at a higher cost, although this may vary depending on individual circumstances.
• Construction materials: Park homes will be typically built with ‘standard’ materials. If anything is built with less commonly used materials, you will need to let your insurer know. More unique construction types can be more costly to replace, or have a higher likelihood of resulting in a claim.
• Address: Most insurers prefer an easily identifiable address before offering cover. If this is not the case, you may have difficulty getting insurance. Some providers may be happy to manually key your address into their system, although this may only be on a case by case basis.

Park home contents insurance

Contents insurance for a mobile home covers items inside of the property that are not fixed, such as:

• Electrical items and gadgets.
• Furnishings.
• Carpets and curtains.
• Clothing, sheets and bedding.
• Kitchen equipment such as crockery.

 Important considerations to be aware of include:

• The market value of items: Like cover for the physical structure of the property, you will need to accurately assess the market value of all for your items to get full coverage. Not all individual items may be covered even if you have assessed the correct total amount, however. Insurers typically only cover each item up to a specific amount and may require you to individually list items worth more than this.
• Claims: Park homes are often a lot smaller than standard residential homes, so you may have less contents to insure. Always make sure you have enough cover, but keep in mind that overinsuring can push up the price of premiums.
• Guest cover: If you do rent out your property to guests, this may not automatically have full cover. Each insurer may provide differing levels of cover.

Optional cover features:

Like with most property insurance cover, you will typically have the option to choose additional cover features. The following are often provided as optional extras, although this may differ with each insurer:

• Legal cover: Covers the cost of legal expenses and court cases for a wide range of issues.
• Accidental damage: Protects you against damage caused unintentionally.
• Guest cover: This extends the cover for your park home to damage caused by guests. Some insurers charge extra for this.

We discuss some of these cover features and issues in more detail below.

Park home liability insurance

Liability insurance relates to injury or third party damage claims brought against you, and covers three main areas for park homes:

• Public liability insurance: This covers you for injury or third party damage claims brought against you by members of the public.
• Property owner liability: Property owner liability covers you against claims where you are held liable as the owner of the park home.
• Personal liability: This covers liability claims centred around an action you personally took.

Liability cover can protect you against many different scenarios and the cost of claims can sometimes run into the millions where serious injury or extensive property damage is concerned. Think about: 

• Legal and contractual restrictions: Some areas of the UK or contracts may require you to have a minimum amount of liability cover in place. Jump to our section on insurance requirements to find out more.
• Risk factors: Is there anything you can do to reduce the likelihood of an issue occurring? Taking simple actions such as leaving instructions for equipment and removing trip hazards can make a big difference. Do a risk assessment, take actions when required, and make sure to keep on maintenance. Visit our page discussing holiday let health and safety regulations to learn more about this topic.
• Insurer differences: Each insurer provides differing levels of cover. Most park home owners are unlikely to be able to cover the cost of expensive liability claims themselves, so consider going with the insurer that offers the most cover that you can afford.

Burglary, theft and malicious damage

As park homes are typically set in partially gated communities, the risk of burglary, theft or malicious damage may not always be as high as with standard residential homes. The risk is still there however, and not all park home locations are of equal risk. When considering these issue, consider:

• Property security: The type of locks used for entrances may play a factor when it comes to how each insurer views the risk for this type of issue. As park homes are typically made in a factory to a certain standard, insurability may be less of an issue in this regard. If any area of your property does use non-standard locks, be sure to let your insurer know. Cover for replacement locks in case keys are lost is also worth considering, as burglary claims may not be covered if issues like these aren’t addressed early enough.
• Guests: Check if your insurer covers theft or malicious damage if using your park home as a short term rental. Guests stealing from your home or intentionally damaging it after they have been given the keys to your property may be viewed differently from a risk perspective to a typical burglary. Not all insurers may cover this, so check to make sure.

Accidental damage

Park home insurance may cover accidental damage, although it is typically provided as an optional extra: 

• Personal accidental damage: This can cover you against accidental damage through personal use of the property by yourself or close family members.
• Guest accidental damage: This covers accidental damage caused by a guest.

A park home owner that visits their property occasionally may have less of a need for this cover than one that visits their property more frequently. If you decide not to take out this cover, consider how you would afford to take care of repairs yourself.

Legal expenses

Legal issues can sometimes arise as a result of being a property owner and park homes are no different. It’s also typically offered as an additional cover option, and can be broken down into two types of cover:

• Family legal expenses cover: This relates to legal issues that arise through personal use of the property, although what it covers can be broad. Examples of such issues include contractual disputes, making personal injury claims against third parties, and property disputes.
• Guest legal expenses cover: Legal expenses cover for guests is similar to family legal cover, but it relates to issues more relevant to short term rentals. Issues such as evicting guests that overstay their booking period, investigations by HMRC, and court cases relating to your short term rental business are examples of typical issues covered.

Loss of income and alternative accommodation

If you regularly have guests stay at your park home then any disruption to your business is something you may want to account for. A house that is in need of repair and is not habitable could result in: 

• Lost income: Income from pre-existing bookings may be lost if you need to cancel them as a result of a claim. You may also incur additional charges on top of this, as some booking platforms may charge a penalty fee for cancelling. Insurance can offer some protection against loss of income and these types of penalty fees following a covered claim. Restrictions such as only covering the first 14 days of any covered claim are usually applied, however. Budget for these types of scenarios so that you can manage these issues when they arise.
• Alternative accommodation: Guests may sometimes require alternative accommodation if a claim arises during a stay. This may be less important for shorter bookings and there is always a chance that the guest may prefer to cancel. If the guest is staying for a longer period then this type of cover may be useful.

Standard park home insurance cover

It’s also worth noting that typical issues such as flood, fire and subsidence are usually covered by park home insurance but are by no means less important. Try to compare like for like cover, as insurers may provide different cover limits or charge differing excess amounts for certain types of claims.

How much does park home insurance cost?

The cost of each park home insurance quote varies according to the details the person put in, the risk in the insurer’s eyes, and variables in the policyholder’s control such as the level of cover. Below are some of the factors considered by an insurer:

• Location: Where your park home is situated may have a significant impact on your premium. Your insurer will take into account known local risk factors such as crime rates, flood history, and the cost of hiring local contractors.
• Claim history: Like standard home insurance, your insurer will take into account any previous claims you have had.
• Property type: Factors such as the make and model of your park home, the construction materials used, and any modifications will play a significant factor.
• Cover: The cover you select will have some impact. A policyholder with contents only insurance may pay less than someone with contents & structural cover, for example. Sometimes increasing the excess can also lower your premium.
• Insurer cost: Your insurer will factor in their own costs when calculating premiums. If these have risen or gone down then these may also play a factor.
• Use and occupancy: Who uses the property may play a significant role. A property with guests may be assessed differently to one just for personal use, for example. Insurers often place limits on how many nights you can personally use your park home. Because of this, the occupancy rate may have some impact.

The above are just general guidelines. Each insurer may place different weight to factors that influence your premium and these can differ year on year. The most reliable way to get the best value quote for your needs is to get multiple quotes for comparable cover. 

Is park home insurance a requirement?

Whether park home insurance is a requirement or not is mainly context dependent, and may depend on factors such as:

• Local authority requirements: Residential park homes may be looked at differently to ones rented out to guests. For example, some park homes rented out to guests may be required to obtain a short let licence. These types of licences require buildings and liability insurance. Regional regulations frequently change and other parts of the UK may introduce similar requirements in the future. Speak to your local authority if you are not sure.
• Finance: If you have obtained your park home via a loan, your provider may require insurance in place for the structural element of the property. Insurance may still be a good idea even if this is not needed, as you may otherwise be required to repair the property yourself whilst still making regular loan repayments.
• Contractual agreements: Park homes based in specific areas dedicated to park homes may be required to have insurance in place as a mandatory requirement. Likewise, if you have someone that manages a park home rented to guests, many property management companies also require insurance in place.

Even if there is no specific obligation to take out insurance, you should consider your own demands and needs first. Properties are typically expensive to purchase and maintain, so consider how you would afford to put anything right if it was damaged or someone claimed against you.         

The difference between a park home and a static caravan

Unlike static caravans, park homes are usually bigger and lived in as permanent homes as opposed to holiday residences. This makes them more similar to residential homes and subject to building regulations. Park homes also tend to be situated in residential community parks as opposed to holiday parks. From a risk perspective, this makes static caravans different to park homes in the insurer’s eyes. 

Who are Pikl?

Pikl is an FCA registered insurance company (FCA number: 773457) that provides dedicated cover for hosts and property owners renting out to guests or people that simply want to use their homes for personal use. If you need insurance for a mobile home or park home, you can:

• Choose between multiple cover options.
• Speak to an expert team based in the UK.
• Get cover with a company that works with top insurers in the UK.

Speak to the Pikl team today if you have any questions about park home insurance or cover for a mobile home.