South Carolina Personal Lines Practice Exam

What must an insured obtain from the insurer when moving the location of a covered mobile home under a Mobile HO policy?

1. Approval for movement

2. Transportation/Permission to Move Endorsement

3. Insurance Transfer Authorization

4. Additional Coverage Certificate

The correct answer is: Transportation/Permission to Move Endorsement

In the context of a Mobile Homeowners (HO) policy, when an insured needs to move the location of a covered mobile home, it is essential to obtain a specific endorsement known as the Transportation/Permission to Move Endorsement. This endorsement grants the policyholder permission to move the mobile home to a new location while ensuring that the coverage remains in effect throughout the process. This requirement is important because standard mobile home policies often have specific limitations concerning the movement of the home; without this endorsement, coverage may lapse or be voided during transit. Thus, the endorsement acts as a safeguard, ensuring that the insured is protected against potential damages that could occur while the mobile home is being relocated. Other responses may seem relevant but do not fulfill the same role. For instance, approval for movement is typically a process rather than a written assurance of coverage during relocation. Likewise, terms like Insurance Transfer Authorization and Additional Coverage Certificate do not specifically address the coverage needs associated with moving a mobile home under these policies. Therefore, obtaining the Transportation/Permission to Move Endorsement is the correct and necessary procedure to maintain adequate insurance coverage while relocating a mobile home.