When it comes to insuring a home, there are different types of policies that homeowners can choose from depending on their specific needs.
Two of the most common types of homes that require specific insurance policies are modular homes and manufactured homes.
While these types of homes may look similar from the outside, they are built differently and require different insurance policies to protect them.
In this article, we will discuss the difference between modular and manufactured homes, and the types of insurance policies that are available for each.
Modular Homes
Modular homes are built off-site in a factory setting and then transported to their final location where they are assembled on a foundation. These homes are built to meet state and local building codes, just like traditional site-built homes. However, because they are built in a factory setting, they can be constructed more quickly and efficiently than traditional site-built homes.
Modular homes are also known for their customizability. Homeowners can choose from a variety of floor plans and finishes, and can even work with a modular home manufacturer to design a completely custom home. Because modular homes are built to meet state and local building codes, they are also considered to be a more permanent and long-lasting option than manufactured homes.
When it comes to insuring a modular home, homeowners have a few different options. The first option is to purchase a standard homeowners insurance policy, which will provide coverage for the structure of the home, as well as personal property inside the home. In addition to standard homeowners insurance, modular homeowners may also want to consider purchasing additional insurance coverage, such as flood insurance or earthquake insurance, depending on the location of the home.
Manufactured Homes
Manufactured homes, also known as mobile homes, are built in a factory and then transported to their final location on a chassis with wheels. Once the home is on-site, it is typically placed on a permanent foundation and attached to utilities such as water, electricity, and sewage. While manufactured homes are also built to meet state and federal building codes, they are often considered to be a less permanent option than modular or site-built homes.
Manufactured homes are also generally less customizable than modular homes. While homeowners can choose from a variety of floor plans and finishes, they are limited by the size and weight restrictions of the transportation method used to move the home to its final location.
When it comes to insuring a manufactured home, homeowners have several options. The first option is to purchase a standard homeowners insurance policy, which will provide coverage for the structure of the home, as well as personal property inside the home. However, because manufactured homes are often considered to be a higher risk than modular or site-built homes, they may require additional insurance coverage. For example, homeowners may want to consider purchasing flood insurance or windstorm insurance, depending on the location of the home.
Modular Home Insurance
As previously mentioned, homeowners of modular homes can purchase a standard homeowners insurance policy to protect their home and personal property. This type of policy typically includes coverage for the structure of the home, as well as personal property inside the home. However, because modular homes are often considered to be a higher value than manufactured homes, homeowners may need to purchase additional coverage to ensure that their home is fully protected.
One type of additional coverage that modular homeowners may want to consider is replacement cost coverage. This type of coverage will pay the full cost of repairing or replacing the home, regardless of its current market value. This can be especially important for homeowners who have made significant upgrades or customizations to their home, as these improvements may not be fully covered under a standard homeowners insurance policy.
In addition to replacement cost coverage, modular homeowners may also want to consider purchasing flood insurance, earthquake insurance, or other additional coverage depending on the location of the home. For example, homeowners who live in an area prone to wildfires may want to consider purchasing wildfire insurance, while those who live in a coastal area may want to consider purchasing hurricane or windstorm insurance.
It’s important to note that modular homes that are located in a mobile home park may have different insurance requirements than those that are located on private property. In some cases, the park may require homeowners to purchase a specific type of insurance policy in order to lease a lot in the park.
Manufactured Home Insurance
Like modular homeowners, those who own manufactured homes can purchase a standard homeowners insurance policy to protect their home and personal property. However, because manufactured homes are often considered to be a higher risk than modular or site-built homes, homeowners may need to purchase additional coverage to ensure that their home is fully protected.
One type of additional coverage that manufactured homeowners may want to consider is replacement cost coverage. This type of coverage will pay the full cost of repairing or replacing the home, regardless of its current market value. This can be especially important for homeowners who have made significant upgrades or customizations to their home, as these improvements may not be fully covered under a standard homeowners insurance policy.
In addition to replacement cost coverage, manufactured homeowners may also want to consider purchasing flood insurance, windstorm insurance, or other additional coverage depending on the location of the home. For example, homeowners who live in an area prone to earthquakes may want to consider purchasing earthquake insurance.
It’s also important for manufactured homeowners to understand that their home may be subject to different insurance requirements depending on the age of the home. Older manufactured homes may be subject to stricter insurance requirements or may be more difficult to insure due to their age or condition.
Conclusion
While modular homes and manufactured homes may look similar from the outside, they are built differently and require different insurance policies to protect them. Homeowners of modular homes can typically purchase a standard homeowners insurance policy, with additional coverage as needed, while homeowners of manufactured homes may need to purchase additional coverage due to the higher risk associated with these types of homes.
When shopping for insurance for a modular or manufactured home, it’s important to work with a reputable insurance provider who understands the unique needs and risks associated with these types of homes. By purchasing the right insurance coverage, homeowners can protect their investment and have peace of mind knowing that their home and personal property are covered in the event of an unexpected disaster or accident.