Does It Cost More To Insure A Manufactured Home?
August 11, 2021

Does It Cost More To Insure A Manufactured Home?

Manufactured homes are often referred to as mobile homes, prefabricated homes, or factory-built housing. The manufactured homes are always insured under a different kind of policy rather than traditional homes. The main reason is that they are much more like a vehicle than a traditional home. For the best type of insurance for a manufactured home, see at San Angelo Insurance online web site.

The fact that mobile homes are built in a factory means that they can be damaged by fire or wind much more easily than regular homes. A lot of people wonder why insurance for a manufactured home costs more. This article will try to put the question to rest.

Insure A Manufactured Home

Does It Cost More To Insure A  Manufactured Home?

Yes, it might cost more to insure a manufactured home. This is due to the added risks that come with owning a manufactured home compared to traditional structures. Most homeowner’ policies cover theft, fire, and natural hazards. However, manufactured homeowners insurance varies from company to company, but any policy should include:

  • Basic coverage - This basic coverage will cover the building itself and any contents inside it.
  • Personal property – This personal property coverage will protect your belongings and is often provided through homeowners insurance policies. It is designed to protect just about anything you have in your home. It covers items such as jewellery, electronics, or furniture.
  • Covered perils – This is the type of coverage that a manufacturer will provide to their customers. It is what would be called "all-risk" coverage in traditional homeowners policies. This type of coverage would pay for damage caused by fires, earthquakes, hail storms, floods, and windstorms.
  • Extended coverage – Extended coverage is provided to any homeowner who has the ability to get it. This coverage often comes with an additional cost but can be extremely beneficial if you have a lot of high-value possessions or expensive pieces of jewellery.

 

Why Manufactured Homeowners Insurance Is More Expensive.

Shipment costs

Modular or "mobile" homes cost more to build than solid walls because they must be prefabricated and shipped to the construction site the same way a semi-trailer truck is moved on skids. The process can take several months and cost many thousands of dollars per home.

Higher deductibles

Depending on the type of policy, manufactured homeowners insurance rates may be higher because they have higher deductibles, which cause policyholders to pay more in case of damage. In addition, most policies require that you have a specific amount in coverage before your insurance company will cover any damage to your house (sometimes called an "excess").

Environmental factors

Most manufactured homeowners have higher rates because they tend to live in high-risk areas like floodplains and areas that are prone to hurricanes, tornados, or other natural catastrophes. Additionally, mobile homes also pose a higher risk of fire or damage during transit.

Less competition among companies that build mobile homes

There are few mobile home service companies because most of them have gone out of business due to the lack of insurance availability and the difficulty of getting workmen's compensation coverage for their employees. The few companies that do remain are very expensive and often take weeks to process a claim.

Mobile homes are relatively new in the insurance world

Manufactured homes are a relatively new product. Not many insurance companies have figured out how to calculate the replacement cost of mould and mildew damage to a manufactured home. The replacement cost can be millions of dollars depending on the material used to build the home and the condition of the mobile lower as compared to other homes. Additionally, owners often add costly upgrades like central heating, storm windows, and doors to improve the conditions of their homes. This can raise average insurance rates by 5-15%.

The cost of manufactured homes insurance is based on the type of dwelling, house size, and age of the home. Other factors that are taken into consideration include location and number of floors. The number of claims made can also affect the cost of a policy, with some companies offering discounts to low-risk customers while conversely, those with a history of home damage will be charged more.

A company may also charge you more if you have attached garages or swimming pools. So when choosing a policy, you must make sure that the premium you are paying is justifiable and appropriate. Do not hesitate to do your research and shop around for a good deal that best satisfies your manufactured home insurance needs.