Manufactured home insurance is similar to a homeowner’s policy, but it is customized to meet the specific needs of manufactured homeowners. It is essential to guard your valuable investments in case of any unfortunate event. It offers financial coverage for your home and properties if they get damaged due to unexpected events like a fire.
In addition, it also offers a personal liability shield if you face any legal action. However, it is moderately expensive to insure a manufactured home compared to a conventional stick-built house due to differences in construction, and it is more inclined to wind damage.
What Is Manufactured Home Insurance?
Manufactured home insurance is a legally binding agreement between you and the insurance company that outlines the reward you will get in case of theft or damage. It offers similar protections to homeowners’ and renters’ insurance policies.
If your home or other structures like fences or sheds are damaged by a covered problem, manufactured home coverage will repay you up to your policy limits. It also covers your personal belongings. In addition, this insurance can guard you from the financial burden of lawsuits if you are found liable for injuries or property damage to others and get sued.
Types of Insurance
A manufactured homeowners policy is an insurance package that is precisely designed for manufactured homes. It provides coverage for the manufactured home itself, theft, and personal liability protection. There are two (2) types of manufactured homeowners policies, which are as follows:
- Named peril policy: The named peril policy offers coverage for specific perils, including fire, windstorm, lightning, explosion, civil commotion, transportation, theft, riot, and personal effects.
- Comprehensive policy: The comprehensive policy covers all perils that are not specifically excluded from your policy, as long as the damage is direct, sudden, and accidental.
It is important to read your policy carefully to understand your coverage, as well as what it covers and what is not covered. Before buying manufactured home insurance, ensure your agent explains the costs and coverages offered by the policy. Your insurance coverage will depend on the type of policy you choose and your individual needs.
What Manufactured Home Insurance Covers
A standard manufactured home insurance policy covers these types of dwellings listed below, and they are as follows:
Personal liability coverage
This coverage protects you from claims or lawsuits resulting from bodily injury or property damage caused by you, a family member, or your pet. This coverage applies to non-auto accidents anywhere, including your property.
Personal property coverage
This coverage keeps your possessions in case of theft from your manufactured home. It is advisable to list all of your personal property and its value to assist you in filing a claim. You can make use of a free app to suitably create an inventory of your personal property.
Fire and extended coverage
The policy offers protection against fire and other perils, including explosions, windstorms, and smoke damage. This policy does not cover theft, personal liability, the contents of your manufactured home automatically, or other extra coverage. However, you can buy extra insurance to include this coverage.
Some policies also offer extensions of coverage, including:
- Emergency removal expense: This coverage covers reasonable costs for eliminating damaged property.
- Additional living expenses: This coverage pays you and your family for additional living expenses when your manufactured home is uninhabitable due to damage or destruction by an insured peril.
Elective coverage types, like trip collision coverage, might be counted in as standard parts of some manufactured home insurance policies.
What Manufactured Home Insurance Does Not Cover
Always make sure you check your policy for what it does not cover because it is important. The lists below are some of the common exclusions, which include:
- Basic wear and tear.
- Earthquake.
- Foundation problems such as building, settling, shrinking, or expanding.
- Mechanical breakdown.
- Nuclear hazard.
- Pests include insects, rodents, and vermin.
- Drain or sewer backup.
- War.
- Your animals.
- Discharge of pollutants.
- Mudslides, floods, and sinkholes.
- Intentional loss.
- Neglect.
- Law or Ordinance.
- Power outage.
Do not forget that the things listed above are the common things that manufactured home insurance does not cover.
Companies Offering Manufactured Home Insurance
It is very easy to get manufactured home insurance. Some of the companies that offer manufactured home insurance are as follows:
- Allstate insurance.
- Farmers.
- Liberty Mutual.
- State Farm.
- 21st Century Insurance.
- American Family.
- American Modern.
- Geico.
- Safeco.
- Foremost.
- Progressive.
The lists above are some of the companies that offer manufactured home insurance.
Final Thought
Manufactured home insurance costs range from $300 to $1,000 annually, influenced by various factors. Coverage for wildfires may be included in some policies, though exclusions are common in high-risk areas. It is crucial to verify whether your policy excludes wildfire risk. When assessing coverage needs, consider the home’s value and the worth of personal possessions like appliances, furniture, and valuables.
