Manufactured homes are a popular choice for many homeowners looking for simplicity and an efficient design for their needs. Manufactured homes are factory-built to exacting specifications, creating a cost-effective, livable residence quicker than other traditionally built homes.
Of course, manufactured homes need to have home insurance like most residences, but there are a few key differences that many people are not aware of. In fact, inadequately insuring your manufactured home can lead to disastrous consequences. Therefore, it’s important to answer the question: How are manufactured homes insured?
To be completely sure that you’re getting the best policy for your manufactured home, consult an independent insurance agent today. Independent insurance agents can break down different policies offered by insurers, clarify the fine print, and ultimately set you up with a policy that meets your needs.
What Is a Manufactured Home?
First, it’s important to define what a manufactured home is and how it is classified by insurers. According to the US Department of Housing and Urban Development (HUD), the official definition of a manufactured home is a house that is built in an assembly plant and transported on a portable chassis to its ultimate destination. Manufactured homes are built in compliance with strict design and safety codes, though they are generally considered less expensive and durable as fixed residences.
What Is Manufactured Home Insurance?
Like the name implies, manufactured home insurance is a package policy similar to homeowners insurance for traditionally built homes. This means that a policyholder will have personal property coverage and financial protection for the home’s occupants and assets, as well as liability coverage in the event of a lawsuit filed against them.
Do I Need Manufactured Home Insurance?
If you own a manufactured home, chances are you’re going to need an insurance policy. Considering that the average cost for a new manufactured home in the United States costs is over $70,000, it’s strongly recommended that you purchase manufactured home insurance to protect your assets.
Manufactured homes also are considered less durable than other residences, meaning that they can be susceptible to fire damage, water damage, extreme weather conditions, and more. While signing up for an insurance policy can be costly, forgoing coverage means that you will be putting yourself and your family at risk of a large financial loss.
While manufactured home insurance isn’t it required by law, it is typically required by:
- Mortgage lenders
- Mobile home parks/communities
- Homeowners associations (HOA)
Failure to carry manufactured home insurance may cause you to be excluded from these locations or have to pay higher than average premiums for a group insurance policy.
What Does Manufactured Home Insurance Cover?
|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 someone 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 permanently attached to your manufactured home, such as a garage or a 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.|
Additional Forms of Coverage
Manufactured home insurance companies allow policyholders to customize their policies through endorsements, which add supplemental coverage to a standard policy. Among the most common additional forms of manufactured home insurance include:
- Umbrella Coverage: This adds increased liability coverage limits.
- Earthquake Insurance: This adds protection against damage resulting from seismic activity.
- Flood Insurance: This adds protection against damage resulting from floodwaters, landslides, and more.
- Fire Insurance: This adds protection against damage resulting from wildfires in high-risk regions.
- Trip Collision Coverage: This reimburses you for damages while your manufactured home is being transported.
If you are interested in learning more about how your manufactured home can be covered, speak with an independent insurance agent today. By comparing policies with an agent, you gain a sense of what coverage is available, available discounts and premium reductions, and how your home may be vulnerable to common risk factors in your area.
How Is Manufactured Home Insurance Different Than Modular Home Insurance?
If you’re researching manufactured home insurance policies and come across similar-sounding ones, you’re not alone. It can be confusing to differentiate between manufactured home insurance and modular home insurance.
First, manufactured homes and modular homes are both built in a factory. Modular homes, however, are built in sections and delivered on-site for later assembly. Manufactured homes, on the other hand, are built in their entirety and then delivered.
Second, the frame on which each house is built is also different. Manufactured homes tend to be built upon a metal frame, whereas modular homes are built on a concrete basement foundation or above a crawl space. The metal frames of manufactured homes typically offer less support against the weather in structural problems, whereas modular homes share more in common with traditionally built homes.
Because of these differences, insurance quotes tend to be higher for manufactured homes than for modular homes.
If you’re currently living in one of these homes and you’re unsure if yours is manufactured or modular, look for a certification label known as a Housing and Urban Development (HUD) tag. The HUD tag is a small metal plate that is normally attached to the outside of the manufactured home. Consulting an independent insurance agent can help you determine which type of home you have and which policies are the best fit.
How Can I Get a Quote for Manufactured Home Insurance?
The best way to get a quote for manufactured home insurance is to contact an independent insurance agent. Independent insurance agents are able to help you shop around between companies, taking into account your home’s area, age, condition, and projected amount of coverage. They can discover potential discounts for your home and premium reductions, such as installing smoke alarms or bundling with your automobile coverage.
For example, finding insurance for older pre-1976 manufactured homes can be difficult due to lax building standards in the past. An independent insurance agent can help you compare national insurers with regional ones to find a company that meets your coverage needs.
Does Manufactured Home Depreciation Affect Insurance Premiums?
One key aspect about manufactured homes is that they tend to depreciate in value over time. While this may come as bad news for long-term investors, the upside is that this depreciation actually lowers insurance premiums based on lower limits on dwelling protection and liability coverage.
Therefore, it’s a wise decision to reevaluate your home and your assets periodically to ensure that you’re getting the most from your manufactured home insurance. This is where an independent insurance agent can assist you, giving you a clear picture of your home's current value and whether you qualify for premium discounts.
Which Insurers Provide Manufactured Home Insurance?
While it is not as common as typical homeowners insurance policies, there are a wide variety of insurers who offer policies for manufactured homes. Be sure to compare quotes from the following companies and more with an independent insurance agent:
- American Modern (AMIG)
- American Family Insurance
- State Farm
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.
TrustedChoice.com Article | Reviewed by Paul Martin
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