Modular homes are a growing trend among homeowners in the United States. As an affordable middle ground between manufactured homes or mobile homes, modular homes allow individuals to create their home piece by piece with manufacturing done on-site. Because of the unique quality of modular homes, Insurers have created policies that are specially designed to meet coverage seen in traditional homeowners insurance policies, but with a few extras.
To make the process of finding the right insurance policy for your modular home as simple as possible, contact an independent insurance agent. Independent insurance agents work with you and for you by comparing policies offered by insurers to provide you with the most comprehensive coverage, and more.
What is Modular Home Insurance?
As mentioned, modular homes are treated like traditional homes when it comes to insurance with a standard homeowners insurance policy. And because modular homes are built in the same way as traditional homes, they don’t have the extra premiums that mobile homes are normally charged due to their increased risk.
What sets modular home insurance apart from typical homeowners policies is that the policy is usually in effect while the home is being prepared and installed. Modular homeowners insurance contains many standard policies, including:
- Dwelling coverage
- Personal property insurance
- Liability protection
- Additional living expenses (ALE)
- Other coverages
|Dwelling Coverage||This pays to rebuild or repair the physical structure of your home if it's damaged by a covered peril. This includes attached structures such as a roof or a deck.|
|Personal Property||This provides protection for your personal belongings whether they are damaged or stolen. Bear in mind that you would have to pay a deductible to make a personal property claim.|
|Liability Protection||This protects you when someone is injured on your property or believes that you committed slander/libel against them. Liability coverage pays for legal defense fees and can pay damages if you're found to be liable up to your coverage limit.|
|Other Structures||This provides coverage for permanent structures that aren't attached to your modular home, such as a garage or barn.|
|Additional Living Expense (ALE)||This coverage provides you with compensation up to your coverage limit for additional expenses if you are unable to live in your home due to a covered loss.|
There are a number of other insurance policies available for modular homeowners insurance. For instance, you may want to have coverage for a detached building like a garage that may pose a risk to contractors who are building the rest of your modular home.
For potential risk factors, your independent insurance agent can inform you of coverage that can prevent catastrophes. Having this knowledge can help you avoid higher premiums and earn discounts on your policy, which is the primary goal with comprehensive coverage.
What Are the Differences Between a Manufactured or Modular Home?
It’s no surprise that many people consider manufactured homes, modular homes, and mobile homes as all the lumped into the same category in terms of insurance. There are some key differences, however.
First, modular homes are often associated with manufactured homes due to the fact they are both mostly built in a factory. Modular homes are different because they are constructed piece by piece, which is shipped in sections and assembled on-site at location. Manufactured homes, on the other hand, are completely finished in a factory and shipped as one unit. This means that occupants can live in separate units of the modular home while it is being built, something a manufactured home doesn’t have to contend with.
Second, a modular home offers more opportunities for customization then manufactured homes. And as modular homes are built to the same building standards as a site-built home (which vary by state and county), the value of a modular home can be comparable to a regular home which means that it rises as time goes on. Insurance-wise, this means that those who want to retain full coverage for their modular homes should have their residence reappraised to expand coverage limits.
How Much Does It Cost to Insure a Modular Home?
Insurance premiums can range dramatically. On the low end, a modular home may only charge $250 annually for basic coverage. On the other hand, more high risk and expensive modular homes can range as high as $1,250 in yearly premiums.
There can be a slightly higher premium for modular homes versus traditional homeowners policies due to the home being unoccupied while it’s being built, the increased presence of workers on the property, and risks associated with vandalism.
To learn more about how much modular home insurance costs, speak with an independent insurance agent to discuss local averages, ways to qualify for discounts, and more.
Which Companies Offer Modular Home Insurance?
The following national insurance companies offer modular home insurance:
- American Modern
- American Family Insurance
- State Farm
However, you may want to work with local or regional insurers to get the best rates. By working with an independent insurance agent, you can quickly compare quotes and ask questions directly related to your modular home insurance requirements.
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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