Mobile Homes Defined

by Mary Beth Guard

When complying with the flood insurance requirements, you often see coverage references that appear to indicate that flood requirements come into play any time you make, increase, extend or renew a loan covered by improved real property or a mobile home.

As with any other law or regulation, it is essential for you to not assume that words or phrases used in the flood provisions should be accorded their commonly understood meaning. Often, as here, the regulation specifically defines terms and gives them a special definitional twist.

In the flood regulations, the term "mobile home" is defined to mean a structure, transportable in one or more sections, that is built on a permanent chassis and designed for use with or without a permanent foundation when attached to the required utilities. The term mobile home does not include a recreational vehicle. For purposes of this part, the term mobile home means a mobile home on a permanent foundation. The term mobile home includes a manufactured home as that term is used in the NFIP.

So, the only types of "mobile homes" that create flood compliance issues are those on a permanent foundation which meet the definition in the regulation. Not sure when a mobile home would be deemed to be on a permanent foundation? Contact the agent who writes your flood insurance coverage to find out what he or she goes by.

Originally appeared in the Oklahoma Bankers Association Compliance Informer.

First published on BankersOnline.com 10/ /01