Mobile Home Park Insurance 101: Overview

Mobile home park operators have certain considerations in terms of safeguarding their investment against potential risks. This blog dives into the multi-layered strategy of risk management which is likely for mobile home park operators. It focuses on the pivotal role of insurance in potentially protecting your assets and ensuring long-term success.

Mobile Home Park Insurance 101: Overview

The Typical Pillars of Risk Management

Before diving into insurance specifics, it’s crucial to understand the foundational aspects of risk management in mobile home park operations. These include:

  1. Strategic Acquisition: Selecting the right properties to add to your portfolio is often the first step in minimizing risk.
  2. Entity Ownership Structure: Properly structuring your business entity can potentially provide significant legal and financial protections.
  3. Efficient Management and Operations: Implementing effective management strategies and operational practices to possibly mitigate risks.

Despite these precautions, the landscape of mobile home park operation still harbors inherent risks, underlining the importance of comprehensive insurance coverage.

Insurance Coverage for Mobile Home Park Operators

General Liability Insurance is crucial for any mobile home park operator’s insurance portfolio. It usually provides coverage for bodily injury or property damage claims. To fully leverage this coverage, it’s essential to comprehend policy exclusions and customize your policy to address the specific risks your community encounters.

Excess Liability Insurance, or Umbrella Coverage, generally provides an additional layer of protection, kicking in when claims exceed your general liability coverage limits. This insurance is often crucial for covering high-severity incidents that could otherwise threaten your business’s financial stability.

Property Insurance safeguards the physical elements of your mobile home park, encompassing buildings and infrastructure enhancements. Accurate valuation and comprehensive coverage are essential to guarantee potential protection against unforeseen disasters for all aspects of your property.

At Keel Team Mobile Home Park Investments, we usually invest using a combination of different methods with our mobile home park investments, typically involving the Buying, Renovating, Holding Long-Term, and Refinancing our assets with Agency Debt (Fannie Mae/Freddie Mac). We only ever sell our properties if we lose trust in the market or if we are presented with a Godfather offer, as the famous investor Sam Zell would say. Check out our eBook on the “Top 20 Things I’ve Learned from Investing in Mobile Home Parks” by Andrew Keel for more potentially valuable insights!

Mobile Home Park Insurance 101: Overview

Specialized Insurance Needs for Mobile Home Parks

Beyond the basics, certain specialized insurance coverages are typically vital for mobile home park operators, likely addressing specific risks that are increasingly relevant in today’s digital and legal environment:

  • Business Interruption Insurance: Generally crucial for safeguarding against financial losses resulting from temporary closures or reduced operational capacity of the mobile home park. It helps cover lost income and operating expenses during periods when the mobile home park cannot function normally due to covered events like natural disasters or major repairs.
  • Workers Compensation Insurance: Crucial for businesses with employees, this coverage offers financial protection against claims from employees injured on the job. It’s especially important in states with expansive legal definitions of employment.
  • Employment Practices Liability and Tenant Discrimination Insurance: This coverage protects against claims of unfair treatment, harassment, or discrimination from employees or tenants, a growing area of concern for mobile home park operators.
  • Cyber/Crime Insurance: In an age where digital transactions and online management are commonplace, protecting against cyber threats and financial fraud is more important than ever. This insurance covers a range of online risks, including data breaches and financial theft.

Conclusion: The Value of Comprehensive Coverage

For mobile home park operators, the complexity of managing a community usually comes with a variety of risks, from legal liabilities to physical property damage. Investing in a comprehensive insurance strategy is not just about meeting legal requirements or appeasing lenders; it’s about potentially ensuring the long-term viability and profitability of your investment. By understanding the ins and outs of different insurance coverages and working with a knowledgeable insurance provider, you can possibly navigate these complexities with ease.

At Keel Team Mobile Home Park Investments, we’re dedicated to enhancing communities while potentially maximizing investor returns. Our focus is on improving residents’ lives while delivering strong profits to our partners. Get in touch using the contact details below to learn more about our investment approach and strategy.

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Interested in learning more about mobile home park investing? Get in touch with us today to find out more.


The information provided is for informational purposes only and should not be considered investment advice, nor a guarantee of any kind. There are no guarantees of profitability, and all investment decisions should be made based on individual research and consultation with registered financial and legal professionals. We are not registered financial or legal professionals and do not provide personalized investment recommendations.

Tristan manages Investor Relations at Keel Team Real Estate Investment. Keel Team actively syndicates mobile home park investments, with a focus on buying value add, mom & pop owned trailer parks and making them shine again. Tristan is passionate about the mobile home park asset class; with a focus on affordable housing and sustainability.