For a house owner, insurance policies are like a boon. They give them a sense of relief. It helps them get rid of situations when they might have to bear a substantial financial burden. Homeowner’s insurance provides coverage for the house, liability claims, and belongings. The policy that the homeowner buys depends on various factors. If you have invested money in a modular or manufactured home, this article is something you must read. Here we are discussing modular vs. manufactured home insurance in detail.
Modular Home Insurance: How Do You Define It?
These types of homes are not built on site. They are built off-site. They do not make the house in one single form but are built into modules. They use these modules to construct the full house with the help of a crane. First, they perform transportation and then assembly. One thing to note here is that modular homes are not something that you can move somewhere after assembly. After assembly, you cannot move the modular home. The base of the house is not temporary. It is either made of crawlspace or slab.
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The modular homes are of single-level and multiple levels. You cannot easily differentiate them from other traditionally built homes. Because of their way of manufacturing, design, and the whole structure is similar. They follow the same standards for building these homes.
Manufactured Homes: Definition
These homes are entirely manufactured in factories and then delivered to the actual site. For delivery, they use a steel chassis that moves with the help of wheels. After delivery, they remove the wheels, but the steel chassis remains attached. People also use the term mobile homes for manufactured homes.
In some instances, it is possible to move the manufactured home to another place. It could be a trailer park or any other site. In such a case, you are the owner of the house but not the land. So you have to pay for the lease of the land. Before you plan to invest in a manufactured home, go through all the details in the agreements. It will help you in making the right decision.
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When you go to buy a manufactured home, it is essential to understand a few things. For example, lenders won’t consider your home as a site-built one. If you think it an investment that will yield more money in the future, it is not true. In terms of financial benefits, the manufactured homes are not in your favor. There is a decrease in their value rather than an increase in the same. Also, it isn’t easy to improve these manufactured homes.
Manufactured homes do not have to follow the local code of building the site. The HUD is responsible for providing the guidelines that they need for manufacturing these homes. It requires inspection of work as far as we know about the electrical installation. They don’t need a structural review. The definition clears out the modular vs. manufactured home insurance.
What Is Modular Home Insurance?
After you buy a modular home, you can invest in a home insurance policy. It will help you in protecting your home from financial burden. Multiple insurance companies don’t even ask you whether your house is site-built or not. They do not want to know about the risk that is particular to a specific home type. That’s why they provide the coverage that is the same as the one for traditional homes.
#1: Dwelling
With the help of the agreement, you will know about the covered perils. If damage to the pipe comes under it, then the insurance company will repair it. The coverage is going to apply to the physical structure of the house. Also, anything that is built-in attachment to the home like garage, deck, or anything else.
#2: Liability Protection
For medical or legal financial needs, if a member of your house is found guilty of damaging someone else’s property. If your friend visits your home and suffers from an injury, then the company will pay for it. In the case of liability claims, the most number of issues that are found are of animal bites.
#3: Personal Property
Just as the name suggests, it pays for personal property damage. For example, a showpiece is broken. The company will replace it even if the piece is not at your property.
Can You Explain Modular vs. Manufactured Home Insurance?
The delivery of modular homes occurs in multiple modules while that of manufactured homes in a single piece. For building the modular home, you need a base that is made of slab or crawl space. On the other hand, manufactured homes are built on a metal frame. Now, the modular homes look more or less like your traditional homes. On the other hand, manufactured homes look boxier. The value of modular homes remains the same while that of manufactured homes depreciates.
Do You Think Manufactured Homes Are More Expensive To Insure?
Yes, definitely. Manufactured homes do not weigh as high as traditional homes. They use fewer building materials. There are multiple insurance companies like the ones in California that offer good policies to the users. They do not consider them separate from traditional homes. However, the difference lies in costs. With manufactured homes lies the risk of damage due to wind or fire. A manufactured home is at greater risk due to pipe damage and theft too. So it is apparent that they will charge more.
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There are some homeowners insurance companies that provide users with incentives to lower the value of premiums. If you are going to install a burglar alarm in your manufactured home, it will definitely help you. You will get lower premium options so you can afford it easily. There are other factors like the size of your house and its age that affect the cost too. Take a look at your residential address in terms of risk due to natural damage. If you live in a place where there are frequent earthquakes, then the companies cannot protect you at a lower value.
We hope you got to know modular vs. manufactured home insurance clearly after reading this article. Do let us know your thoughts in the comment section.
