Residential Park Home Site Insurance
A residential park is a permanent community of people living in homes they own, on land the park owner owns. The residents insure their own homes. The operator insures everything else: the roads, drainage, water and electrical supplies, street lighting, communal buildings and the liability for all of it, along with any homes the operator owns and lets.
That split is set by law as much as by contract. In England, the Mobile Homes Act 1983, as amended by the Mobile Homes Act 2013, gives residents security of tenure and implies terms into their agreements, including the park owner's obligations to maintain the site and repair the base and services. In practice a failed drain or collapsed road surface is the operator's problem, and the residents are entitled to expect it fixed.
Many residents are retired, and they live on the park all year round. That changes the liability profile compared with a holiday park: falls on uneven paths, poorly lit roads at night and slippery surfaces in winter are the claims that matter, and they involve people who may be more seriously hurt by them.
We can advise residential park owners and operators on insuring the site infrastructure and communal buildings, their liability to residents and visitors, and the pitch fee income that pays for the upkeep of the park.
Common claims and risk exposures
The exposures that produce claims in this trade, rather than a generic list.
Roads, paths and street lighting
Internal roads and footpaths are the operator's responsibility and are used every day by residents, carers, visitors and delivery drivers. Potholes, raised kerbs, broken lighting and ice on slopes produce trip and fall claims, and a maintenance record showing inspections and repairs is what allows them to be defended.
Drainage and underground services
Older parks often have drainage, water mains and electrical cables laid decades ago and extended piecemeal as pitches were added. A failure can affect many homes at once, flood a pitch or cut supply to a whole section of the park, and the repair and the liability to residents both fall on the operator.
Fire between homes
Park homes stand close together, and site licence conditions set separation distances for that reason. Sheds, porches, decking and extensions built by residents can close the gap, and the operator is expected to manage the site so that fire separation is kept.
Trees and boundaries
Mature trees are common on established parks and make them pleasant places to live. They also fall in storms, damage homes and cars, and lift paths and drains with their roots. A tree survey and a record of work carried out helps both prevention and the defence of a claim.
Regulation and the site licence
Local authorities licence the site and, in England, can serve compliance notices and require the park manager to pass a fit and proper person test. Breaches, enforcement and disputes with residents are management risks, and some generate legal costs the operator may want insured.
The cover we arrange
We arrange insurance around the property, its use, construction, occupancy and ownership structure. The cover available will depend on the individual risk and the terms offered by insurers.
Site infrastructure
The roads, paths, drains, sewers, water and electrical distribution, lighting columns, walls and fences that make up the park, insured on a reinstatement basis. These items are easy to undervalue because nobody thinks of them as buildings.
- Roads, paths and car parking areas
- Drainage, water and electrical networks
- Street lighting, walls and fencing
- Professional fees and debris removal
Communal buildings and operator-owned homes
Clubhouses, offices, laundries, stores and workshops, together with any park homes the operator owns and lets or holds for sale. Homes held for sale need declaring separately from the residents' own homes.
- Clubhouse and communal facilities
- Office, stores and workshops
- Park homes owned or held for sale
- Contents and equipment of the park
Park owner's liability
Injury to residents, their visitors and the public, and damage to residents' homes and property caused by the park's infrastructure, trees or operations. Given the age of many residents, a fall that would be minor elsewhere can lead to a significant claim.
- Injury on roads, paths and communal areas
- Damage to residents' homes from site services
- Trees and boundary features
- Limits often £5m or £10m
Loss of pitch fee income
Pitch fees fund the running of the park. Where a flood, fire or failure of services means homes cannot be occupied, the income can stop while the operator's costs continue, and the indemnity period should allow for replacement homes to be sited.
- Pitch fees from affected homes
- Income from operator-owned lettings
- Additional costs to restore services
- Indemnity period reflecting siting times
Legal expenses
Disputes with residents over pitch fee reviews, site rules, sales of homes and the condition of the park can end at a tribunal. Legal expenses cover, where available, can meet some of the cost of pursuing or defending them, subject to the policy terms.
- Tribunal and court costs where covered
- Disputes with residents or contractors
- Employment disputes with park staff
- Prospects of success usually required
What an underwriter will ask
Having these to hand shortens the process considerably, and usually improves the terms.
- Number of pitches, the number of homes owned by residents and any owned or let by the operator
- Age of the site and of its roads, drains, water mains and electrical distribution
- Inspection and maintenance records for roads, paths, lighting and play or communal areas
- Tree survey and the date it was last carried out
- Site licence conditions, compliance notices and the fit and proper person position
- Communal buildings and facilities, and how they are used
- Flood history and proximity to rivers, the coast or low lying ground
- Claims history, in particular trips and falls and claims by residents
What affects the cost of your insurance?
The main factors insurers consider when assessing the premium.
Size and age of the park
The number of pitches and the age of the infrastructure set the property values and the likelihood of service failures. A park with renewed drainage and electrics will usually be viewed more favourably than one running on original installations.
Maintenance and inspection records
Documented inspections of roads, lighting and trees, with repairs logged and dated, are among the factors insurers weigh most on the liability side.
Flood and location
Riverside and low lying parks carry flood risk to both the infrastructure and the residents' homes, and the operator's liability and income are affected even where the homes are insured by others.
Claims history
A record of trip claims or service failures points insurers towards the maintenance regime, and terms often depend on what has been done since.
Conditions and exclusions to consider
Terms vary between insurers, so treat these as the questions to ask rather than a description of any one policy.
Residents' homes and contents
Homes owned by residents are their own property and need their own park home insurance. The park's policy responds to damage to them only where the operator is legally liable, for example through a failed service or a falling tree the operator was responsible for.
Wear, tear and gradual failure
Infrastructure that has deteriorated with age, such as drains that have collapsed slowly or road surfaces worn through, is maintenance rather than an insured event. Sudden, accidental damage is what a property policy is built to cover.
Fines and enforcement penalties
Penalties imposed for breaches of the site licence or other regulations are generally uninsurable. Legal costs in defending enforcement action may be covered under some legal expenses wordings; the penalty is not.
Undeclared work by the operator
Where the operator's own staff carry out groundwork, tree felling or electrical work on the park, insurers will want to know. Some policies limit cover for hazardous work done in house without the right competence or equipment.
Common questions
Who insures a park home: the resident or the park owner?
Residents who own their homes insure them. The park owner insures the land, infrastructure, communal buildings and any homes the operator owns, along with the liability for the site. Where the park's own failure damages a resident's home, the operator's liability cover is the policy that may respond.
What is the park owner responsible for under the Mobile Homes Act?
In England, the implied terms of the Mobile Homes Act 1983 include obligations on the owner to maintain the common areas and to repair the base and the services supplied to the pitch. The detail depends on the written agreement, so it is worth checking alongside the insurance to see which repairs fall to you.
Does the fit and proper person test affect our insurance?
It is a licensing matter rather than an insurance requirement, but insurers may ask about the site licence and any enforcement history. A park with compliance notices outstanding is likely to face more questions at renewal.
If a flood forces residents out, do we lose pitch fee income?
Possibly, depending on the agreements and on how long homes cannot be occupied. Loss of pitch fee income cover, as part of business interruption, can protect that income where the cause is an insured event at the park.
Do we need cover for the trees on the park?
Trees themselves are rarely insured, but the liability when one falls on a home, a car or a person is. Insurers commonly ask about tree surveys, and a regular survey with the recommended work carried out puts you in a better position if a claim is made.
How do I get a quote from True Risk Solutions?
Call 01304 262880 and speak to a broker, or email info@truerisksolutions.co.uk with what you do, what you need cover for and a phone number with the best time to call, and a broker will call you back. We need a phone number to quote, because the cover and the price depend on questions that are quicker to answer on a call than by email.
Speak to a specialist who understands your industry
Tell us about your business and the work you undertake, and we will come back to you with cover options built around it. Call 01304 262880, or email us with a phone number and the best time to call and a broker will ring you back.