What must agencies do before binding new coverage for manufactured homes?

Before binding new coverage for manufactured homes, agencies are required to collect outstanding balances from previous policies. This step is vital because it ensures that any previous debts or claims associated with the property are settled before new insurance coverage can be initiated. It helps in mitigating risks for the insurance company, as unaddressed outstanding balances could lead to complications in policy terms, claims handling, and financial liability.

In this context, assessing the home's market value or evaluating the current occupancy status could provide useful information, but these steps do not directly prevent binding new coverage. Obtaining a new inspection certificate might be necessary in certain situations to ensure compliance with current safety and structural standards, but it is not a universal requirement prior to binding coverage. Therefore, collecting outstanding balances is a crucial administrative step that safeguards both the insurer and the insured, ensuring a clean slate before entering into a new coverage agreement.