Mobile Home Insurance: Do You Need It?

Mobile and manufactured home insurance covers your home, your property and liability claims, similar to what you’d find in a homeowners policy. Although you’re not required to cover these homes by law, some mortgage companies and communities of mobile homes may insist on coverage. This article will give you a brief overview of mobile home insurance, including what it covers and whether it’s worth investing in.

What is a mobile home?

In the U.S., more than 17.5 millions people live in manufactured homes or mobile homes. 1 The 2017 American Housing Survey, the most recent data available, shows that manufactured housing accounts for about 3% of housing in urban areas.

Two characteristics are common to all manufactured homes:

1. The buildings are constructed in factories rather than on site.
2. Instead of being anchored to a slab or crawlspace they rest on a mobile chassis.

There are three sizes of manufactured homes: single-wide, double-wide, and triple-wide: 1

The manufactured home is energy-efficient because it’s built in a factory. 4 It can be customized with many features from vaulted walls and sheetrock ceilings to arched doors and solid wood cabinets.

It can be difficult to purchase a mobile home because of the many options. Mobile Home Dealers will help you to navigate through the many manufacturers, styles and sizes of mobile homes.

What is the difference between a manufactured home and a mobile home?

Although people often use the terms Mobile and Manufactured interchangeably there is a significant difference. According to the U.S. Department of Housing and Urban Development, or HUD, considers a home built in a factory before June 15, 1975 a mobile house. Anything constructed after this date is referred to as a manufactured home. The insurance industry still refers to the product as “mobile home coverage” despite this.

Do you need insurance for a manufactured or mobile home?

You can choose to insure or not to insure your new manufactured home, unless your lender requires it. According to Homes Direct, an online manufactured and modular home retailer, the average price of a new manufactured house is $83,000. 6 With that cost, you should get a policy that covers your home and possessions.

What does mobile home insurance cover?

The coverage provided by homeowners’ insurance is the same for mobile homes and manufactured homes. Like most homeowners’ policies, you can customize it by changing the coverage limits, and adding endorsements. These are other terms for policy amendments.

The Insurance Information Institute (III), states that most manufactured home policies include coverage for: 7

Physical Damage

It covers accidental damage caused to your house, belongings and other structures, such as an attached deck, or outbuilding, by fire, hail, winds, theft, vandalism and falling objects. The III warns that the “amount and degree of cover” varies between policies, so it is important to compare them carefully. Like regular homeowners’ insurance, floods are not covered. You can buy separate flood insurance if you live in a flood-prone area. It’s the same for wildfires and earthquakes. Consider adding coverage to these natural disasters if you live in a zone of high risk.

Personal Liability

The liability coverage protects you in case a member of your household is found responsible for damaging someone else’s property or if someone gets injured at home. (It does not cover illness or injury for those living within the home.) Medical expenses, lost wages and pain and discomfort are all possible claims. The III states that you may need more insurance to protect your assets than is included in a standard manufactured-home policy. Consider purchasing additional liability insurance if this is the case.

Named Peril Policies offer another option for coverage. They are relatively cheap, but only cover the specific losses that were named in their policy. If your home is damaged for a reason not covered by the policy, it’s up to you to fix the damage and replace any personal items. Although you will save money on your premiums, additional risks may outweigh any savings.

What is the cost of mobile home insurance?

The cost of your manufactured home insurance policy is determined by many factors.

• The value of your home
• The square footage of the house is its size
• The year the building was built
• Your personal items, including collectibles, are worth a lot of money
• Costs are affected by the home’s address (severe weather, wildfires or floods, crime, and how your town responds to these hazards can all be considered).
• Construction materials
• History of repair and renovation
• Existing claims under your home insurance
• Rent or buy the land where your home is situated
• Safety devices such as fire extinguishers and sprinklers are present in every home.
• Security features in the home, including deadbolts and burglar alarms.

The cost of your insurance will depend not only on the features of your home, but also the limits you select for coverage and the deductibles. You’ll typically pay more for comprehensive coverage with lower deductibles and less for basic coverage with higher deductibles. According to TrustedChoice.com a group independent insurance agents, the average cost to insure an manufactured home is between $300 and $1000.

If you are looking for insurance to cover your manufactured home, find the coverage and deductibles which best suit your budget.

Bottom Line

Although manufactured homes are expensive – a double-wide oceanside in California sold recently for around $2 million – they offer a cheaper path to homeownership compared to traditional homes.

It’s important to protect your home with adequate insurance, even if the costs are lower. The premiums are likely to be a small fraction of what you would have to pay if you were to replace or repair your home yourself. The rates vary between companies, so compare three or more quotes to get the best deal.

Adsrocks’s writers are required to use primary resources to support their writing. White papers, government statistics, original reporting and interviews with experts in the industry are all examples. Where appropriate, we also refer to original research by other reputable publishers. Our editorial policies will tell you more about our standards for producing accurate and unbiased content.