Insurance gives us security and peace of mind in all areas of life, and manufactured home insurance is no exception. Like traditional home insurance, manufactured or modular home insurance ensures you’re protected against the unexpected. It’s essential to make sure you have good and affordable coverage, but manufactured housing insurance differs from traditional home insurance, so it can be difficult to figure out where to start.
What It Covers
Insurance for mobile homes is different from traditional home insurance. First and foremost, manufactured housing is evaluated on the same scale as moveable property like an RV, not the scale for a traditional house with a permanent foundation. Therefore, insurance coverage looks different for manufactured houses. It’s important to know what standard mobile home policies cover, as well as what add-on policies may be in your best interest to protect your assets and investments.
Standard Policies
A standard mobile home insurance policy typically covers the following areas:
- Physical damage: includes fires, most natural disasters, wild animal damage, vandalism, and burst pipes.
- Loss of use: includes expenses for temporary accommodations if an event makes your home uninhabitable.
- Personal property: includes replacement cost of your personal belongings if they are stolen, destroyed, or damaged (e.g. electronics, clothes, furniture, and appliances)
- Liability coverage: includes liability protection in the event of being sued by someone who was injured on your property.
This is a wide range of coverage, but depending on your policy and lifestyle, you may need to invest in additional policies for the best protection.
Additional Policies
The first essential policy to explore for mobile homes involves transportation. Unlike traditional stick-built homes, a manufactured or modular home with an impermanent foundation is able to be transported to another location. Insurance for this transportation is normally not included in standard policies, but it may be covered in the home manufacturer’s commercial insurance policy. This is critical to know before transporting your home.
In addition, some natural disasters—such as hurricanes, floods, and earthquakes—may not be included in your standard policy, as well as items like sewer back-ups, debris removal, matching siding endorsements, identity theft, and damage or loss of expensive personal items like jewelry. Be sure to ask your insurance agent about all additional coverage to find the best solutions for you and your lifestyle.
What It Costs
Before you begin your insurance search, it’s helpful to create an inventory with the value of your personal belongings, your home, and your property, if applicable. This allows you to estimate the approximate replacement value—the cost it would take to replace your property in their current pre-loss conditions—to determine how much coverage you need. From there, you have several factors to consider, including coverage limit and premiums, deductibles, and your location, before you’ll be able to calculate your total homeowner insurance costs.
Coverage Limits
Coverage limits dictate the maximum amount your insurance company will pay if you file a claim. Higher limits come with higher premiums, and it’s essential to know your approximate replacement value to decide what sort of coverage limit is appropriate for you.
Deductibles
Deductibles determine the amount of money you must pay before your insurance will begin to pay. The higher your deductible, the less expensive your policy, and vice versa.
Location
The cost of mobile home insurance coverage depends in part on the location of your home. Regions with higher risks for natural disasters, for example, may come with higher priced policies than low-risk areas.
With all these factors in mind, mobile home insurance averages anywhere between $300 to $1,000 annually. This figure may be slightly higher or lower depending on other factors like your additional policy needs, the size of your home, and your geographical region.
In Summary
Insurance for manufactured housing is an essential component for the ultimate peace of mind and financial security. Most insurance companies offer policies for mobile homes, so you can start your search with the same company as your auto insurance, but it’s always worth comparing rates to find the best and most affordable insurance coverage for you.
To get a free, no-obligation quote on your mobile home, head over to MHVillage’s manufactured and mobile insurance page and simply enter your home manufacturer, year of construction, and your ZIP code.
For more tips and basics on manufactured housing, check out our blog.
