How to get insurance for a manufactured home: If you’re looking to insure your manufactured home, understanding how the process works and what to look out for can save you a lot of hassle.
Manufactured homes, which are also referred to as mobile homes, have unique characteristics that set them apart from traditional houses. Because of these differences, they require specialized insurance coverage. Let’s walk through everything you need to know to find the right insurance for your manufactured home.
Start by Asking the Right Questions
When you start shopping for insurance, it’s essential to have a clear understanding of what coverage you need. That begins with asking the right questions. Don’t hesitate to reach out to potential insurers and inquire about the specifics of their policies. Here are some of the key questions you should consider:
- How much coverage do I need for my home and personal belongings? Make sure the policy covers the full replacement cost of your home and its contents. This way, in the event of a loss, you won’t be left trying to make up the difference.
- Should I get replacement cost or actual cash value coverage? Replacement cost coverage allows you to replace items at their current market value without considering depreciation, while actual cash value coverage accounts for depreciation. Although replacement cost coverage might be a bit pricier, it could offer more peace of mind.
- What discounts are available to help lower my premium? Many insurance companies offer discounts for things like bundling policies, installing security systems, and even having a good credit score. It doesn’t hurt to ask and could save you money.
- Are there any additional coverages I should consider, such as flood or windstorm insurance? Standard manufactured home insurance policies may not cover certain types of damage. If you live in an area prone to flooding or hurricanes, you might need separate policies for these risks.
Using an Independent Agent to Shop for Insurance
One of the most effective ways to find the right insurance for your manufactured home is to work with an independent insurance agent. Unlike agents who work for a single insurance company, independent agents represent several insurers. This means they can compare multiple policies to find one that suits your needs.
- Get Recommendations: If you don’t already have an independent agent, ask around. Family, friends, and neighbours who own manufactured homes might be able to recommend someone they trust. Additionally, you can look for agents online and read reviews to find one with a good reputation.
- Let the Agent Work for You: Once you’ve chosen an agent, they will ask you a series of questions to understand your insurance needs. This could include information about the age, size, and location of your home, as well as any personal property you’d like to insure. From there, they can compare policies and present you with options that meet your criteria.
What If You Can’t Find Coverage?
In some cases, finding an insurer willing to cover your manufactured home might be challenging, particularly if the home is older or located in a high-risk area. Fortunately, there are options available if you run into this problem.
Some states offer insurance programs for homeowners who can’t find coverage on the private market. For example, the Texas FAIR Plan Association provides coverage to homeowners who have been turned down by two different insurers. Each state’s program is different, so check with your local insurance department for details.
Related: Home Insurance – What Does Homeowners Insurance Cover?
Understanding the Different Types of Coverage
Manufactured home insurance is similar to traditional homeowners insurance, but there are a few differences. Here’s a breakdown of the main coverages to keep in mind:
Dwelling Coverage
This covers damage to the structure of your manufactured home from events such as fire, wind, hail, theft, and vandalism. Make sure you have enough coverage to rebuild your home if it’s completely destroyed.
Personal Property Coverage
Your personal items, such as furniture, electronics, and clothing, can be protected under this coverage. Be aware of the policy limits and whether the coverage is for replacement cost or actual cash value.
Liability Protection
Accidents can happen, and if someone is injured on your property or you accidentally cause damage to another person’s property, liability protection can help cover legal fees, medical bills, and damages.
Additional Living Expenses (ALE)
If your home is damaged and becomes uninhabitable, this part of your policy can help pay for temporary housing while your home is being repaired.
Optional Coverages
Depending on where your home is located, you may need to add specific coverages, such as flood insurance, windstorm insurance, or earthquake insurance. These are not typically included in standard policies, so make sure to ask about them if you think they’re necessary.
Consider the Age and Condition of Your Home
The age and condition of your manufactured home can significantly impact your insurance options. Older homes may be harder to insure, and some companies might not offer coverage for homes that don’t meet certain standards. Before you start shopping for insurance, it’s a good idea to have your home inspected to address any potential issues. Doing so could make it easier to secure coverage and may even lower your premiums.
Risk Factors
Where your home is located will also play a role in determining your insurance rates. Homes in areas prone to natural disasters, such as floods, tornadoes, and hurricanes, may come with higher premiums or require additional coverage. Check if your home is in a designated flood zone and consider purchasing a separate flood insurance policy if necessary.
For instance, homes on the Gulf Coast may need windstorm coverage to protect against damage from hurricanes, while those in California might consider earthquake insurance. Understanding the risks specific to your area will help you make an informed decision about the coverages you need.
Tips to Save Money on Manufactured Home Insurance
Insurance can be a significant expense, but there are several ways to lower your premiums. Here are a few tips:
- Bundle Your Policies: If you already have auto or other insurance policies, consider bundling them with your manufactured home insurance to get a discount.
- Install Safety Devices: Installing smoke detectors, security systems, and storm shutters can sometimes lead to lower premiums.
- Maintain a Good Credit Score: In many states, insurers can use your credit score to determine your premium. A higher score can often mean lower rates.
- Raise Your Deductible: Opting for a higher deductible can reduce your monthly premium. However, make sure you’re comfortable with the amount you’ll need to pay out-of-pocket if you need to file a claim.
Conclusion
Remember, insurance is about peace of mind. You’re not just protecting your home; you’re also protecting your family and your future. Take the time to review your policy regularly and update it if your situation changes. That way, you can rest easy knowing that your home and everything in it is covered.
