Insurance for A Modular Home VS. Manufactured Home

Buying a home is one of the biggest decisions you’ll make! That means insuring your manufactured or modular home investment is just as important as the purchase of your home, whether you’re buying a new home or still looking for your perfect home.

Are all homeowner’s insurance policies the same?

No, but choosing the correct policy is important because each policy has different coverage options. An example for that would be manufactured home insurance is different than your typical home insurance policy. You should make sure your home investment and all your personal property is covered.

Is manufactured or modular home insurance cheaper?

Home insurance prices vary depending on numerous factors, but whether your home is manufactured or modularneither is necessarily cheaper than the other.

Policy rates vary on factors such as:

  • The value of your home ‐ If your manufactured or modular home is new, you should have a good idea of its value.
  • The foundation ‐ Your rates could vary based on whether your home has a pier and beam foundation or a permanent foundation like a brick or block foundation.
  • The location of your home ‐ Your home insurance rates could be higher if you live in an area that has severe weather.
  • The year of your home ‐ Your rates can vary by the year your home was built. As a home ages, regular maintenance issues come up such as plumbing, electricity and others. Some insurance companies may offer a new home discount, and some insurance companies may charge premiums as your home ages.
  • The amount of coverage ‐ Typically you are given the option to choose the amount of personal property and liability you would like to cover.
    • Liability Coverage
    • Personal property coverage, if your personal items are damaged or suffer a loss.
    • Your deductible ‐ With some companies, you have the option to choose the amount of money that you will pay toward home repairs before your home insurance policy is initiated.

Even with all these factors in mind, it’s hard to determine if manufactured or modular home insurance policies are more expensive because every situation is different. However, manufactured homes are often viewed as an increased risk of damage, after being designed and engineered to last a lifetime. Manufactured homes are not made with a permanent foundation, which is the main reason for it being more prone to damage. Since modular homes are treated like traditional homes, it would also require a standard homeowners insurance policy. They are both very similar, modular homes are built in the same way as a traditional homes. In the comparison to manufactured homes, the premium paid for modular homes is much cheaper.  Apart from the usual insurance policies offered to standard homes, modular homes should also be insured during the preparation and installation phase of the home.