Is Homeowners Insurance More Expensive for Manufactured Homes?

No matter the kind of home you own, it is important to have insurance that efficiently protects it from accidents and natural disasters. Because of the vast difference in build, manufactured homes have different policies compared to traditionally built properties. However, they are similar in the sense that you will still be able to add or adjust your coverage according to your home’s specific needs.

Below, we discuss the standard inclusions of a mobile home insurance policy and what factors can affect the cost.

Mobile home insurance vs. Manufactured home vs. Modular home?

Before anything else, let’s clarify some terms. Most people use “mobile home”, “manufactured home”, and “modular home” interchangeably. While this is generally accepted, there are slight differences between them.

Mobile homes are types of manufactured homes that have been produced before June 15, 1976 when the HUD Code took effect.

Manufactured home is an umbrella term for any home built within a factory, and then either delivered as a whole or installed onsite. These are all built under the HUD Code to ensure proper design and safety measures are in place.

Lastly, modular homes are also built in a factory and installed onsite, but instead of following the manufacturing standards of the HUD code, they are produced according to the state or regional codes within the area the modular home will be located.

What does mobile home insurance cover?

The standard inclusions of mobile home insurance are:

Dwelling coverage

Dwelling coverage is to protect the main structure along with other permanent structures within your property, such as the deck, garage, or shed

Personal property coverage

Personal property coverage protects your personal belongings in case of theft of physical damage.

Liability coverage

Liability coverage is to protect you in the instance that a 3rd party gets injured on your property and claim you are responsible. This may cover legal fees and medical costs up to your limit.

Loss of Use / Additional Living Expenses (ALE)

Loss of ALE applies when your home incurred damages that require you to temporarily live somewhere else. It may cover the cost of hotel rooms, rent, and restaurant meals.

What does mobile home insurance not cover?

There are two main exclusions of mobile home insurance. You may purchase them as an add-on or as a separate policy if you feel it is necessary.

Peril Policies

Peril policies protect your mobile home from specific events such as fire, hail, flood, earthquakes, hurricanes, windstorms, and the like. While some insurance companies offer these as part of the standard package, not all of them give ample coverage. It would be more practical to purchase a policy that covers perils common in your area, rather than purchasing every single kind available.

In Transit Damage

Since manufactured homes are built in a factory and delivered to your location, there is a risk of damage in between points A and B. In Transit Damage policy covers the cost of repair or replacement for any damages incurred while transporting your manufactured home.

How much does mobile home insurance cost?

 

Mobile home insurance is often more costly compared to standard policies because there are generally more risks with owning a manufactured home. For instance, manufactured homes are not permanently attached to a solid foundation, which makes them more vulnerable in storms.

The average mobile home insurance today costs around $300 to $1,000 annually. However, depending on your location, preferences, and other factors, it can go up by a substantial amount.

It is important to gather different quotes and information from varying mobile home insurance companies to ensure you purchase the one that best suits your needs. There are many limits and deductibles with mobile home insurance; therefore knowing your coverage options is crucial.

Lastly, some companies offer discounts or bundle rates that can help in lowering the cost of your whole policy. Know all your options and do your research before settling for an insurance company.

Kinds of mobile home insurance discounts

As mentioned above, some insurance providers offer discounts to lower your annual premium. Some of the most common kinds are:

Bundling

Some insurance carriers can give you a bundle rate if you purchase more than one product from them, such as home policy plus auto policy.

Protective devices

If your home has safety features in place such as fire alarms, security cameras, and the like, your insurance provider may offer discounts for a more protected home.

Model Year

Some insurance carriers offer lower premiums for newer homes.

Autopay

More often than not, signing up for automatic payments can get you a discount on your premium

Original owner

Some insurance companies offer up to 5% off if you are the original titleholder of the mobile home.

Retirement 

Some insurance providers offer up to 10% discount if you are over the age of 55 and also retired.

Who is manufactured home insurance for?

Manufactured home insurance is available for the following types of homes:

• Mobile / modular homes located within a park or private party
• Mobile / modular homes used only seasonally
• Commercial mobile / modular homes
• Rental mobile / modular homes

Can you purchase insurance for older mobile homes?

Yes, there are insurance companies that offer protection for older mobile homes. However, it can be more expensive than the average cost most especially if your home was built before the 1976 HUB code took effect.

Factors that affect your mobile home insurance premiums

Many factors can influence the cost of mobile home insurance. These include:

Personal Factors

• Your location may be one of the biggest factors as this determines if you are more or less at risk of natural disasters. This takes into account several weather risks, including hurricanes, tornadoes, flood, and even wildfire.
  Apart from natural calamities, your location can also determine the crime rate within your neighborhood and if you are in close proximity to any first responders, such as police and fire departments.
• Your claims history can be a factor in both the eligibility and your premiums. The more claims you have already filed in the past, the higher your current premium rate may be.
• Your insurance score can also affect the rate of your premium since insurance providers sometimes use your credit score when setting a premium. This considers your credit history and outstanding debt.

Mobile Home Factors

• Age and condition of your mobile home, with older homes are more at risk of damage.
• Floor plans can vary in single-wide, double-wide, or triple-wide. Each has varying widths, lengths, and total square footage.
• Safety features installed in your home can lower your premium.

Coverage Factors

• Coverage amount, the more you need covered, the higher your premium.
• Deductible levels
• Replacement costs can make your premium go up if you own an expensive mobile home. Additionally, it will be less expensive if you opt for an Actual Cash Value policy instead.

How to compare mobile home quotes from different insurance companies

The first step before comparing quotes is knowing exactly what you need covered, and how much of it you want covered. If you are not sure of this, speaking with an insurance agent can be helpful.

Secondly, ask for the exact same coverage and limits from each of the insurance companies you are considering.

Third, ask each company if they offer any discounts or bundled rates that you can qualify for. Make sure that you save all of their responses in writing or as a document.

Lastly, use the same deductible amounts when comparing policies. From there, you should have a better picture of which company is best for you.

That’s all there is to it!