Mobile Home Insurance: Do You Really Need It?

Mobile Home Insurance: Do You Really Need It?

A standard home insurance policy provides coverage for your home and property. Mobile home insurance is pretty similar to the typical homeowner’s policy. However, no law forces you to insure your mobile home. It’s the mortgage companies that demand coverage.

This article covers all the aspects of mobile home insurance including its definition, the coverage, and other details. Read till the last to get a fair idea about whether to buy the policy or not.


Mobile Home: Definition

There are more than 17 million people who reside in mobile homes in the United States. If we look at the American Housing Survey of the year 2017, it gives a clear picture of these homes. It states 15% of them are in rural areas while 3% in the developed regions. Two primary characteristics help you differentiate mobile homes from others. Instead of carrying out the manufacturing process on-site, it is carried out in factories. Also, the base on which the entire house is set is a movable chassis. We need to move it, so it is an apt choice to fit it on something easy to move.

Also read: Complete Guide On Modular Vs. Manufactured Home Insurance

Manufactured homes come in three different categories in the form of sizes. The first one is single with a width of up to 18 feet, the double comes with a width ranging between 20 to 36 feet, and the triple one comes up to 50 feet wide. The length remains constant in all the home sizes. A lot of factors affect the efficiency of these homes—for example, the factory environment. Manufactured homes are usually more efficient.


How Do You Differentiate Between The Manufactured Homes And Mobile Home?

The definition of mobile and manufactured homes is quite similar. People often mistakenly use these terms interchangeably. Here, we are going to give a point to help you differentiate them.

Also read: A Thorough Guide To Home Warranty vs Home Insurance!

The United States Department of HUD considers the construction of houses before 15th June 1976 as mobile homes. After this date, the houses came into the category of manufactured homes. The insurance companies still use the term mobile insurance for these homes. Another imposition that occurs after 1976 is that houses must follow safety standards while constructing manufactured and mobile homes.


Are You Really In Need Of A Manufactured Home Or Mobile Home?

Until you don’t want mobile home insurance, you don’t have to apply for it. However, a few companies, like mobile home communities, demand the insurance of your home. If you have just manufactured your home, then its average price is about $83000. This data is according to the home dealers who gave it to Home Direct. If you know you own an expensive house, it clicks you that you need insurance. After all, no one is interested in spending a lot of money on unwanted things like a product’s sudden breakage.


Mobile Home Insurance: All About Its Coverage

We keep reminding you that the standard homeowner’s insurance has similarities with other homes. Just like traditional insurance, we can make changes to these policies too. It could be in the form of coverage limits. You can even add endorsements if you need to. Here, we are going to take you through the basic coverage of mobile home insurance offers.


#1: Damage To Physical Structure

It is going to pay for the damage to your house and the stuff that is inside it. The damage has to be accidental. It could be due to a sudden fire breakout, or a thief enters your property, an object falls off.

Also read: Home Equity Line of credit vs Home Equity Loan

There is a variation in the type of coverage as it differs from one policy to another. It would be best if you examined the policies correctly. Also, it doesn’t cover natural calamities like floods. And take note that there might be other calamities that do not come under the policy. You must purchase a separate policy for coverage for the same. People living in the high-risk zone cannot neglect this factor.


#2: Personal liability

This coverage is an interesting one. If your daughter or any other family member is liable for damaging another person’s property, it helps you. Another instance could be that your friends visit your home for a party and an accident occurs. Here, the insurance will help you carry out the medical treatment of your friend smoothly. There are varied forms of claims that come with personal liability. These include lost wages, pain, and even medical expenses. Here, it is essential to note that the amount of insurance could be more significant than the traditional one. In such a case, you must invest in additional liability insurance.


#3: Named Perils

This coverage is another option for mobile home insurance. This one is a comparatively cheap policy addition. It covers only specific causes of loss that come under this policy. Suppose your home suffers from unavoidable damage. The company will now look into the policy details whether the cause of damage comes under the named perils. If it is not in the policy, you solely must repair or replace the damage. It saves money on premiums, but in rare cases, whether the cause is not in peril, it consumes your savings.


Mobile Home Insurance: How Much Do You Need To Pay?

Mobile home insurance policy cost depends on a bunch of factors. Do you know the cost of your mobile home? If yes, then you must also understand that the higher the price higher the insurance cost. If it is old, it needs repair more often, so again the charges are high. Similarly, these factors also affect the premiums:

  1. How often your house needs repair or renovation?
  2. Are there any existing claims?
  3. Where do you reside? Is it a high-risk area?
  4. Is your mobile home equipped with security systems?
  5. Did you make use of good-quality materials for its construction?
  6. How much do other things on your house cost? It could be anything in your house
  7. Whether you are still using the house or someone is living on rent and using it?

All of these factors work together to form the total cost of mobile insurance.

In a nutshell, mobile home insurance is always an excellent idea. Nobody wants to pay for heavy damages out of their pocket. Thus insurance will help you safeguard your savings. We hope this article gives you the correct insight into this insurance. Do let us know your thoughts on it.