Mobile and Modular Home Insurance

The Lowdown on Mobile and Modular Home Insurance

(Because homes of all shapes, sizes, styles, and types need the proper protection)

Mobile and Modular Home Insurance

No matter what type of home you own, it needs to be protected. The construction of your home doesn’t make it immune to the elements of nature or other common perils like vandalism. That’s why it’s important to understand what kind of coverage you need for your specific home type. An independent insurance agent can help you find the right mobile or modular home insurance for you. But first, a breakdown of these coverages.

What Are the Characteristics of Mobile and Modular Homes?

Mobile homes are constructed in a factory and then taken to the property to be set up where the homeowner will live. Instead of being equipped with basements or crawlspaces, mobile homes might be constructed on metal frames and may have tie-downs instead of a permanent foundation slab. Mobile homes may be on wheels and ready to drive away, but not necessarily.

A modular home is essentially a step in between a mobile home and a traditional home that’s built completely on site. Modular homes are constructed in factories like mobile homes, but they’re shipped in sections and later assembled on-site where the homeowner will eventually live. Thanks to their unique construction, modular homes are easily customizable, and unlike mobile homes, modular homes often come with basements or crawl spaces.

Modular homes look more like “regular” homes, while mobile homes tend to appear trailer-like or distinctly boxy. Mobile homes also typically depreciate in value over time, whereas modular homes maintain their value almost the same way traditional homes do.

Can I Insure My Mobile or Modular Home with Traditional Homeowners Insurance?

Because of the differences in their construction, one type of policy won’t work for both mobile and modular homes. In the case of modular homes, since they are so similar to traditional homes in the eyes of insurance companies, you actually will purchase a standard homeowners insurance policy. However, mobile homes are a different story and need their own type of insurance policy due to the riskier nature of their construction.

Is It True that It’s Hard to Insure Mobile or Modular Homes?

There’s an old urban myth that it’s next to impossible to find insurance for your mobile or modular home. Fortunately for these homeowners, this just isn’t the case. Not only can owners of modular homes purchase traditional homeowners policies, but major insurance companies have actually created a special type of policy for mobile homes since coverage is so commonly needed. So there’s no need to worry about finding coverage — it’s out there.

What Does Mobile Home Insurance Cover?

Though you can’t insure a mobile home with a traditional homeowners insurance policy outright, that doesn’t mean mobile home insurance doesn’t protect your home basically in the same ways. There are three major components to mobile home insurance, and you’ll find they closely mirror those of traditional homeowners insurance:

  • Property coverage: This coverage aspect protects the structure of your home from common perils like fire, certain natural disasters, theft/vandalism, and more.
  • Liability coverage: This coverage aspect protects the homeowner from third party claims for property damage or bodily injury that occurs on your property. Coverage reimburses for court and legal fees.
  • Contents coverage: This aspect of a mobile home insurance policy offers protection for your personal belongings like furniture, clothing, knickknacks, etc., from common perils like fire and theft.

An independent insurance agent can help you get set up with all the coverage you need in every category of mobile home insurance.

What Does Modular Home Insurance Cover?

Since you can insure your modular home with a traditional homeowners insurance policy, the coverages are identical. Homeowners insurance is designed to protect all aspects of the home, including the structure, ts contents, and living members of the household. Standard homeowners insurance policies come with four major coverage categories:

  • Structural damage: Covers what insurance companies refer to as the “dwelling,” or the structure of the home itself. Damage to or destruction of the dwelling by covered perils falls under this category. Coverage often extends to detached structures such as sheds, as well.
  • Personal property damage: Covers your personal belongings like furniture, clothing, electronics, knickknacks, silverware, etc., from perils such as fire or theft. Items stored within the home as well as external storage units are covered, though property stored off-premises may have a lower coverage limit.  
  • Liability: Covers legal expenses such as attorney and court fees in the event you are sued for bodily injury or property damage to a third party. Settlements you’re ordered to pay if you lose the case are covered as well. Coverage extends to all members of the family living within the home, including pets. Many incidents that occur away from the home are also covered.
  • Additional living expenses: Covers living expenses in the event your home gets badly damaged or destroyed and you’re forced to live elsewhere while awaiting repairs. Your insurance company provides reimbursements for things like hotel rooms, eating out, extra gas mileage, and more. Additional living expenses cover the difference in spending to maintain your normal lifestyle while living away from the home.

These four components compose the core of homeowners insurance packages. Once again, an independent insurance agent can help you get set up with all the coverage you need in each category for your modular home.

How Much Do Mobile and Modular Home Insurances Cost?

Many factors influence the cost of a homeowners insurance policy, including the size and location of your home, the value of the structure and the contents inside, and any upgrades you’ve made. As of 2020, however, the average annual premium of standard homeowners insurance policies falls between $650 and $1,650. So, you can expect to pay somewhere within this range to insure your modular home.

As far as mobile homes are concerned, it’s more difficult to offer a ballpark figure. That being said, since mobile homes tend to be much smaller and simpler than traditional homes, the cost of mobile home insurance tends to be much less expensive than standard homeowners insurance. An independent insurance agent can help find multiple quotes for you with close-to-exact figures.

Where Can I Find Modular or Mobile Home Insurance?

Since modular homes are insured by traditional homeowners insurance, you can go through any major homeowners insurance carrier you like to find coverage. However, mobile home insurance is a different beast. Fortunately, there are a handful of popular mobile home insurance providers that can help start off your search:

  • American Modern
  • Assurant
  • Allstate
  • Foremost
  • Farmers
  • HomeFirst

An independent insurance agent can help find a modular or mobile home insurance policy for you from a reputable insurance company. All you have to do is call.

Benefits of an Independent Insurance Agent

Independent insurance agents have access to multiple insurance companies, ultimately finding you the best coverage, accessibility, and competitive pricing while working for you. Find an independent insurance agent in your community here.

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TrustedChoice.com Article | Reviewed by Paul Martin

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