We get homeowners insurance for our home. We purchase car insurance for our cars. On the other hand, travel insurance is purchased whenever we travel. However, what if your house is on wheels? What type of insurance should you get? What if your home was made in the factory and not on-site?
The growing popularity of mobile, modular, and manufactured homes have prompted insurance companies to offer insurance for these types of homes. If you are planning to buy a modular home, you may want to get yourself acquainted with modular and manufactured home insurance policies. This article aims to explain the ins and outs of this kind of home insurance.
Table of Contents
- 1 Modular Homes vs. Manufactured Homes
- 2 Mobile Home Insurance
- 3 The risks of a mobile or manufactured home
- 4 Modular Home Insurance
Modular Homes vs. Manufactured Homes
Modular homes and manufactured homes are both built in a factory. However, there are several differences to both types of pre-built homes, which require them to have different types of insurance policies. A modular home is delivered to the site in multiple pieces, but a manufactured home is delivered as is. Thus, a manufactured home arrives at the site as a finished product. On the other hand, a modular home still needs assembly.
As a result, a modular home appears similar to a regular home. In terms of insurance policies, modular homes would require a standard homeowners insurance policy. The value of a modular home can be comparable to a regular home, which means that it rises as time goes on. On one hand, manufactured homes are similar to mobile homes and it needs a mobile homeowners insurance policy. Due to this, mobile homes are similar to cars when it comes to its value over time. As soon as the manufactured home leaves the factory, the value begins to decrease almost immediately.
Mobile Home Insurance
This type of insurance is far less common, which is why some people have difficulty shopping around for this insurance. In this section, you can find out more about mobile home insurance.
Identify the Purpose of the Mobile Home
Before you purchase mobile homeowners insurance, you should disclose to your insurance company the main purpose of insuring your home. Mobile homes can sometimes be used as a vacation home or as their primary home. It can even be rented out to interested tenants. Since the purpose of building each mobile home is different, the insurance coverage should be tailored to the purpose that it serves.
Insurance for Mobile or Manufactured Homes
As stated earlier, manufactured homes are subjected to mobile homeowners insurance. Here are some of the types of coverage that you may avail of with a modular home:
Damage caused by sudden and accidental circumstances protect the homeowner up to the policy limit. It provides protection for the external and internal home systems. Some perils covered by a standard homeowners insurance policy include earthquake, fire, flood, wind, and hail. However, mobile homes are also protected against off right-of-way collision. Due to the nature of mobile homes, insurance policies may also offer protection against the damage caused by wild or stray animals.
Personal Policy Coverage
The contents of a mobile home may also be protected by availing of personal policy coverage. If the damage is caused by events covered by the policy. Since mobile homes are more prone to theft, it is important to get a policy that covers these types of instances.
Mobiles homes are exposed to several risks. Your home may suddenly back up and injure your neighbors, which is why it is important to always have liability protection when your home has wheels. This may also provide protection if you need legal assistance for issues pertaining to your policy.
Additional Living Expenses
Severe damage to the mobile home may result in the need of finding a temporary home. If your mobile home is unsuitable for living, you may need to live temporarily in an inn or a hotel. If you are covered for additional living expenses, you can do away with the financial responsibilities when finding a temporary living space.
Other Insurance Policies
Mobile, manufactured, and modular homes are a different kind of residential property. Thus, there are different coverage policies that are available to them that are not available to regular homes. First, mobile or manufactured homes may opt for an insurance coverage when they are in transit. Owners of manufactured homes may also choose to have their homes insured during the period of installation.
The risks of a mobile or manufactured home
Stands on Temporary Foundation
Manufactured homes are not made with a permanent foundation, which is the primary reason that it is more prone to damage. When fortuitous events occur like earthquake and flood, manufactured homes are more at risk than standard homes.
No Coverage when in Transit
Mobile homeowners often wonder if their home insurance policy can protect them when the home is moving. There are insurance companies that offer mobile home insurance coverage that still protect the manufactured home when it is moving. However, a standard home insurance policy for mobile homes won’t likely cover for the damage if the property is in transit.
Modular Home Insurance
Since modular homes are treated like traditional homes, it requires a standard homeowners insurance policy. Despite being similar to a manufactured home, modular homes are built in the same way as a traditional homes. In comparison to manufactured homes, the premium paid for modular homes is much cheaper.
Much like a standard homeowners insurance, you can make use of the usual coverage options for dwelling, personal property, liability protection, additional living expenses, and other coverage options. This will help cover any financial expenses incurred when your property experiences sudden losses. This is extremely important for modular homes since they are more prone to damage compared to traditionally built homes. Apart from the usual insurance policies offered to standard homes, modular homes should also be insured during the preparation and installation phase of the home.