Mobile Home Insurance: Do You Need It?

The home, your personal property, and liability claims are all covered by mobile and manufactured home insurance, similar to what you'd get in a typical homeowners policy. While you are not required by law to insure these properties, mortgage providers and mobile home communities may. Here's a quick rundown of mobile home insurance, including what it is, what it covers, and whether you should buy one.

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TAKEAWAYS IMPORTANT

• The home, your personal belongings, and liability claims are all covered by mobile home insurance.
• Although there is no law requiring insurance, your mortgage company or mobile home community may.
• Premiums vary per company and are determined by a variety of factors like as the size, location, and characteristics of your house, as well as the quantity of coverage you desire.

What Is the Definition of a Mobile Home?

In the United States, more than 17.5 million people live in mobile homes, often known as manufactured homes.

Manufactured housing accounts for around 3% of all housing in urban areas and 15% in rural regions, according to the 2017 American Housing Survey (the most recent available).

Manufactured homes have two distinguishing characteristics:

• They are manufactured in factories rather than on-site.
• Instead of a slab, crawlspace, or basement, they are supported by a moveable chassis.

Single wide, double wide, and triple wide manufactured homes are available in three sizes:

Size                     Width                     Length

Single wide       Up to 18 feet          Up to 90 feet

Double wide     20 to 36 feet           Up to 90 feet

Triple wide       Up to 50 feet          Up to 90 feet

Manufactured houses are energy efficient because they are created in a regulated industrial environment. From vaulted ceilings and sheetrock walls to arched doors and solid wood cabinetry, they may be easily altered.

The multitude of alternatives available might make the process of buying a mobile home confusing. Mobile home dealers can assist you in navigating the various manufacturers, styles, and sizes available to discover a mobile home that meets your requirements.

What Is the Difference Between a Manufactured Home and a Mobile Home?

While many people use the phrases "mobile" and "made" interchangeably, there is a significant difference between the two. According to the United States Department of Housing and Urban Development (HUD), a mobile home is one that was built before June 15, 1976, and a manufactured home is one that was built after that date. Despite this, the product is still referred to as "mobile home insurance" by the insurance industry.

The minimum construction and safety criteria for mobile and manufactured homes have been enforced by federal construction laws since 1976.

Is It Necessary to Insure a Mobile or Manufactured Home?

Unless your mortgage company or mobile home community demands it, you have the option of insuring or not insuring your manufactured home. According to data from Homes Direct, a prefabricated and modular house company, the average cost of a new manufactured home is around $83,000. 6 Given the cost, it's a good idea to purchase a good insurance coverage to safeguard your home and goods.

What Is Covered By Mobile Home Insurance?

The coverage provided by mobile and manufactured house insurance is similar to that provided by standard homeowners insurance. You can also modify your policy by adjusting the coverage limits and adding endorsements, which are another word for amendments or policy modifications, just like with standard homes plans.

According to the Insurance Information Institute (III), prefabricated home plans typically cover the following:

Physical harm

This covers fire, hail, wind, theft, vandalism, and falling items that cause damage to your home, valuables, and other structures (such as an attached deck or an outbuilding). According to the III, "The quantity and scope of coverage differs from one insurance to the next, so make sure to shop around. Flooding is not covered, just like standard homeowners insurance. If you live in a flood zone, you can obtain flood insurance separately." Earthquakes and wildfires are the same way. Consider adding coverage for these natural disasters if you live in a high-risk area.

Personal responsibility

If a family member is found accountable for damage to someone else's property or if someone is hurt at your home, liability coverage can assist protect you (it does not cover injury or illness for anyone living in the home). Medical expenditures, lost pay, and pain and suffering are all possible claims. The amount of insurance you'll need to secure your possessions, according to the III, could be greater than what's included in a conventional manufactured home policy. Consider purchasing supplementary liability insurance if this is the case.

Another coverage option is named perils insurance. These plans are quite inexpensive, but they only cover specific types of loss that are specified in the policy. That means you'll be on your own to repair the damage and replace your personal belongings if your home is damaged by a cause not covered by the policy. Even if you save money on premiums, the additional risks may exceed the benefits.

How much does it cost to insure a mobile home?

The cost of manufactured house insurance, like ordinary homeowners insurance, is determined by a number of factors, including:

• The worth of a house
• The house's dimensions (its square footage)
• The worth of your personal stuff, especially collectibles, the year it was created
• The physical address of the residence (costs are affected by location-based considerations such as severe weather, flood and wildfire risk, crime rates, and your town's reaction to these threats).
• The materials used in construction
• History of repairs and renovations
• Existing claims on your homeowner's insurance
• Whether you rent or own the land on which your house is built
• Smoke detectors, fire extinguishers, and sprinklers are all examples of safety devices that can be found in the home.
• Security measures in the home, such as deadbolts and burglar alarms

In addition to the features of your property, the cost will be determined by the coverage levels and deductibles you select. Generally, more comprehensive coverage and lower deductibles will cost more, while more basic coverage and higher deductibles will cost less. According to TrustedChoice.com, a collection of independent insurance agents, the cost of insuring a manufactured house ranges from $300 to $1,000. 

When shopping for prefabricated home insurance, strive to discover the greatest mix of coverage and deductibles that fits your budget and meets your insurance requirements.

Final Thoughts

While manufactured homes can be expensive—a beachfront double-wide in California recently sold for almost $2 million—they are generally more affordable than traditional homes.

Despite the cheaper rates, it's a smart idea to safeguard your investment with a comprehensive insurance coverage. After all, the premiums you'll pay are probably a drop in the bucket compared to the price of repairing or replacing your home on your own. Because rates differ from one business to the next, seek at least three estimates to make sure you have the coverage you want at a price you can afford.