Manufactured Home Insurance
There are many types of homes that are alternatives to brick-and-mortar homes. This means that they will have different insurance requirements.
If you currently own or are considering buying a manufactured home, it’s important to understand the differences so that you have the coverage that you need.
What Types of Homes need this Coverage?
These policies are often called manufactured or mobile home insurance policies, they are really a modified version of a homeowners policy.
A manufactured home is built at another location than its permanent site. Then it is transported in one piece to the permanent site.
The only difference between a manufactured home and a mobile home is the date it was produced. Any of these home built before June 15, 1976 is classified as a mobile home. All those built after are manufactured homes.
They can be placed on concrete piers or a concrete slab foundation. Many often have additional features such as porches, stairs, and garages.
Due to the style of construction, manufactured homes must comply with federal CSA/HUD building codes. This means that they need a different type of insurance policy than the standard homeowners policy.
As most manufactured homes are not secured to a foundation and have wheels, insurers look at them a little differently. The wheels and chassis allow for the home to be moved if needed but it can also make them less secure in severe weather events.
What is Covered?
Policies for manufactured homes will cover the home and the owner’s personal property. Like a traditional homeowner’s policy, it also provides liability coverage including medical expenses, protects detached structures, and replacement costs if the unit and its contents are damaged or destroyed.
If you have valuable possessions such as artwork, jewelry, or firearms, for example, make sure that you have adequate coverage to protect these items.
One thing that is different from a traditional homeowner’s policy is that you can get coverage for the trip from the building site to its more permanent site. This protects you should there be an accident when the home is in transit.
What does it not cover?
As with homeowner’s policies, it does not cover flood events. This is an additional policy that is needed if the home is in an at-risk flood plain. The policy will cover water damage from backups within the dwelling. Just not water damage from a flood.
Are There Policy Limits?
Severe weather events can severely damage or destroy manufactured homes. It’s important to talk with your agent about the best policy for your home. As manufactured homes have less insulation, they can be damaged by freezing pipes in severe weather.
It’s important to know that you have the best coverage in place. Also, ask your agent if there are any discounts for installing safety features such as hurricane straps or skirting. This could lower your premium.
Protecting your home with the right insurance should be a priority. If an accident or damage occurs, you need to know that you’re covered.
Types of Alternative Homes
Another form is mobile homes. Lastly, there are manufactured homes.
Parts of a Manufacture Home Insurance Policy
Insurance for manufactured/mobile homeowners has been written on a package basis (property and liability) since the introduction of the Mobile Home Policy Program in the late 1960s.
Current rules provide for writing manufactured home insurance by adding endorsements (MH 04 01) to a Homeowners Form that tailors the standard homeowners coverage to exposures characteristic of manufactured homes.
While these are the standard coverage, many carriers offer standard and preferred programs where the benefits and cost vary.
Section 1 Property
Coverage A Mobile Home: This applies to the described manufactured home, attached structures, utility tanks, and permanently installed property such as appliances, cabinets, and floor coverings. It must be written for at least the minimum limits in the Homeowners Premium Table. Some carriers have a minimum $2,000 to $5,000 and maximum of $65,000 to $75,000. While other carriers write a policy that more closely resembles a Homeowners Policy.
Coverage B Other Structures: This is 10% of Coverage A just as in a Homeowners Policy.
Coverage C Personal Property: This is generally written as a limit equal to 30-50% of the Coverage A limit.
Coverage D Loss of Use: This may be written on a daily amount (example $20 per day) not to exceed a percentage of the Coverage A limit (10-20%).
Section II Liability
Coverage E Personal Liability: This is generally less than a Homeowners Policy. Depending on the program, you qualify for personal liability ranging from $25,000 to $100,000 as is standard in many Homeowners Policies. You can purchase more coverage.
Coverage F Medical Payments to Others: This generally ranges from $500-$1,000 per person