Manufactured Home Insurance

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Contributor, Benzinga
December 17, 2021

Manufactured homes provide secure housing at an affordable price for homeowners. 

According to the 2017 American Housing Survey, about half of all manufactured housing is found in rural areas. About 3% of homes in urban areas and 15% of homes in rural areas are manufactured homes. 

Benzinga will explain what a manufactured home is, how it differs from traditional housing and outline how to find the best manufactured home insurance policy for your needs. 

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Key Points

  • Insurance for manufactured home insurance ranges from $300 to $1,000 annually.
  • Manufactured home insurance covers the structure as well as personal property and liability.
  • Customers looking for manufactured home insurance should know all companies do not insure manufactured homes. 
  • Manufactured homeowners should be aware of U.S. Housing and Urban Development (HUD) updates on requirements for manufactured homes built before 1976.
  • Mobile home communities and mortgage companies often require proof of manufactured home insurance.

What Is a Manufactured Home? 

Unlike other home structures, manufactured homes are not built on a slab, crawlspace or basement. Instead, they sit on a moveable chassis. Once manufactured homes have been built, they get moved to the property site in one or more sections.

Unlike other types of homes, manufactured homes are built in factories instead of being constructed on the property site. 

Manufactured homes can be up to 90 feet long. The width of a manufactured home is categorized in one of three ways. A single-wide home is up to 18 feet wide, a double-wide home is between 20 feet and36 feet wide, and a triple-wide can be up to 50 feet wide. 

Because manufactured homes are constructed in a temperature-controlled environment, they are highly efficient. Owners of manufactured homes can customize their homes much the same way they could customize a site-built home. 

What Defines a Mobile or Manufactured Home? 

The terms mobile home and manufactured homes are often used interchangeably, and modular homes have similarities to manufactured homes, adding to the confusion. 

Before 1976, the only term used was mobile home. After June 15, 1976, HUD established new standards for mobile homes that override state and local building regulations. Mobile homes built after this date are now called manufactured homes. 

The following list of features accounts for the definition of a manufactured home:

  • Constructed in a factory
  • Transported to an on-site location
  • Rests on a permanent steel chassis
  • Meets HUD International Residential Code (IRC) standards

Modular Versus Manufactured Home 

While manufactured homes are wholly built in a factory, modular homes are typically partially constructed in a factory. Modular homes look very similar to site-built homes on the exterior. 

At the appropriate point in construction, various sections of modular homes are transported to the property location, where final construction occurs on site. Unlike manufactured homes, modular homes rest on a permanent foundation. Many modular homes even have basements. 

With a manufactured home, the federal regulations supersede state and local regulations, while modular homes must comply with local building codes and standards. 

What Does Manufactured Homeowners Insurance Cover?

Dwelling Coverage

The dwelling limit on a manufactured homeowners insurance policy covers the home’s structure. It does not cover separate structures, contents inside the home or the land itself. This section also covers permanently installed fixtures and permanently attached appliances. 

Personal Property Coverage

The next section covers your personal property, including furnishings, clothing, electronics and other items. You could think of it as anything you could pick up and carry out of your home. This section typically also affords some coverage for losses to personal property that are damaged or stolen outside the home. 

Other Structures Coverage

Manufactured homes do not typically have attached garages. Homeowners might add a detached garage or shed, however, which would be covered under the other structures coverage. This coverage would also apply to a fence around the home. 

Medical Payments 

Under this section, owners of manufactured homes get coverage to pay for medical expenses for anyone who is injured while on their property. This coverage is typically used for minor injuries involving a doctor’s visit or visit to the emergency room. 

Liability Coverage 

The liability section of a manufactured homeowner insurance policy pays for losses due to major injuries or deaths in your home where you are found to be liable. Liability also covers homeowners, where they damage someone else’s property. Liability protection also pays for legal and defense costs. 

What Extra Coverage, Endorsements or Riders Are Available? 

A manufactured home policy is a base policy that protects you from the most common types of losses. 

Much like a homeowners insurance policy for a traditional home, many manufactured home insurance policies allow you to add the following extra coverages, endorsements or riders to protect the property that is most valuable to you:

  • Jewelry, watches, furs
  • Sporting equipment
  • Musical instruments
  • Business personal property
  • Water backup
  • Trees, landscaping
  • Green improvement, energy-efficient improvements
  • Electronic data recovery
  • Identity theft

The best manufactured home insurance companies will offer you the endorsements or riders you need for your individual circumstances. 

How To Buy Homeowners Insurance for a Manufactured Home 

Manufactured homes of today arehigh quality, and many of them appreciate in value. To get the best homeowners insurance for your investment, consider what you need to cover and the risks that are common in your area. 

The following list will point you in the right direction:

  • Your area is prone to specific natural disasters such as fire, tornadoes, hurricanes, flooding or earthquakes.
  • You have valuables such as jewelry, sports equipment, musical instruments, fine arts or collectibles. 
  • You have other structures such as a garage, shed or fence.
  • You have insurance requirements by your lender or mobile home community. 
  • The amount of investment in your landscaping is significant. 
  • You conduct business on the premises.
  • There are exclusions for water damage, mechanical breakdown or damage by animals. 

Compare Manufactured Home Insurance

Not all insurance companies provide quotes for manufactured homes, but there are several quality insurance companies that offer affordable quotes for manufactured homes. 

Texas has the most manufactured homes, and Benzinga’s list of average premiums for an $80,000 manufactured home in Dallas will give you an idea of what you can expect to pay. 

ProviderQuoted Premium
Allstate$383
USAA$1427
Progressive$217
Farmers$1427
Liberty Mutual$648

1. Allstate

From protecting your home and lawn to protecting your cherished possessions, Allstate has built-in and additional coverages to meet your needs. 

The premiums are affordable for most manufactured homeowners, and a variety of discounts makes that possible. 

2. USAA

USAA offers many different kinds of insurance for military personnel and veterans. Its customer service representatives understand how mobile their clientele is, and they strive to ease the adjustment of moving. 

USAA supports all basic coverages and adds extra protection for debris removal, credit card forgery, food spoilage and more. 

3. Progressive

Progressive made its name on its auto insurance platform, and customers can now purchase home, manufactured home, tenant and rental property insurance with the company as well. 

A nice feature Progressive has is a single deductible. If you have an incident that affects your car and your home, you only pay one deductible rather than two. 

4. Farmers

Farmers Insurance has a strong reputation for customer service, and it gives the same time and attention to homeowners of manufactured homes. It offers nice discounts for bundling your home insurance with other policies. 

Farmers agents are happy to review coverages, options and pricing, and the company’s discounts are plentiful. 

5. Liberty Mutual

Liberty Mutual covers all the bases of basic coverages and optional coverages to customize your manufactured home policy. 

Manufactured home pricing is good, and homeowners can take advantage of around a dozen different discounts. 

Manufactured homes today are built according to high standards. They are usually environmentally efficient, and some models are eco-friendly. This type of home is easy to customize and offers many of the same features as a standard single-family home. 

You have the option of placing them in a mobile home community or on your own tract of land. A manufactured home can provide a comfortable environment for singles, couples or families for a lifetime. 

To learn more about manufactured homeowners insurance policies or other types of home insurance, visit the Benzinga website today!

Frequently Asked Questions 

Q

What factors go into calculating the rate for my manufactured home?

A

Much like a standard homeowners policy, your premium takes multiple factors into account, including your home’s location, size, value, age and whether you have other structures. Your credit score and the amount of personal property you want covered may also have a bearing on the premium.

Q

How can I get the lowest rate on manufactured home insurance?

A

Many of the factors on a manufactured home policy such as age and location cannot be changed. Nonetheless, it will help to get a lower rate if you can maintain a good credit rating and remain claims-free. Many companies also offer multipolicy discounts for insuring your auto or boat with the same company.

About Maurice Draine

Maurice Draine is a former insurance agent, broker, underwriter tech, and agent sales support rep with over 15 years of professional writing experience. Maurice helps insurance, financial, and various online and ad agencies, create the words that drive customers to their websites and keeps them there.