Manufactured Home Insurance vs. Traditional Home Insurance
In the past, when manufactured homes were lumped in with the mobile home/trailer park equation, insurance rates were roughly 20% higher than a policy on a site-built home.
The reasons for carrying homeowner’s insurance on a manufactured home is the same as it is for its site-built counterpart; namely fire, vandalism and other catastrophic events. You want to make sure you and your family are taken care of if anything untoward happens.
Fortunately, manufactured homes have come a long way in the last few years and as a result many are seen as permanent structures that are equal or superior in quality to site-built homes. Less than 2% of today’s factory built homes are truly mobile after installation and rarely leave their permanent foundation. If you are buying a modern manufactured home, chances are you can get a fair deal on insurance.
Today’s manufactured home is a complete dwelling unit that is constructed in a factory in conformance to a strict building code formulated by HUD (Department of Housing and Urban Development). The house can consist of one or more transportable sections. Most houses are made up of two or more sections that are bolted together. A great many people live in manufactured homes and love them. The quality is good and you will be hard pressed to find a single family dwelling that is as varied and appealing as these designs are. The houses look just like site built homes but you have a huge selection of floor plans. The open space layouts with entryways near to the ground are ideal for ramps and very accessible for people with disabilities. Manufactured homes fall into the category of factory built homes. This includes Modular Homes, Pre-Cut Homes, Panelized Homes and Mobile Homes.
There are many issues to consider when contemplating a manufactured home but the trend is growing and the quality is good. Many insurance companies are now catering to manufactured homes and they no longer distinguish between manufactured homes and those built on-site. The cost of the average factory built home policy is basically the same as a site built ones of comparable value.
As with any other insurance, the amount of degree of coverage can vary from one policy to another. Therefore, it is up to you to do your homework and make comparisons. A factory built home on a permanent foundation has a better chance of being viewed as similar to a site built house.
Factory built home insurance policies provide physical damage insurance, liability insurance and credit life insurance (this one is necessary if you want you don’t want your spouse to be stuck with mortgage payments in the event of your untimely demise).
Most manufacturers offer a warranty that covers the structure and things like plumbing, heating and electrical systems. Know what your warranty covers and how long it lasts and factor that into your insurance plan.
Source: The Complete Buyer's Guide to Manufactured Homes and Land