Manufactured home insurance is for insuring homes that have been manufactured or factory built and then transported to the site where they are installed. Insuring them is similar to insuring other ordinary homes, except for some few differences. It contains the same coverage for dwelling, personal possessions and liability. The policy also has limits and deductibles. The home is insured using the conventional homeowners insurance though some insurance companies are starting to offer specific manufactured home insurance. However, the cost of insuring a home that is manufactured is more than insuring a conventional home. This is because the homes are prone to more damage from frozen pipes, storms and fire.
Some of the steps you can take to ensure you pay lower premiums are:
• Ensure the home you are buying complies with the HUDs standards.
• Insulate the home well to prevent freezing pipes damage
• Minimize storm damage by buying a double wide home instead of a single wide. You should also secure it with ground anchors and tie-downs.
You should note that manufactured homes depreciate as they age, with their value reducing. This may mean that you have higher limits on liability coverage and dwelling protection than you should have. You should therefore reevaluate your home often to ensure you have the right coverage amount.
Additional coverage
Apart from the standard coverage, you may decide to include additional coverage to your home. Some of the areas you can cover that are not present in conventional homes include:
• Coverage on trip collision- it is insurance for the home when being transported from factory to the location where it will be installed.
• Coverage on Vendor's single interest- this provides protection against collision when the home is being transported, protects against fraud and on the right of the lien holder to repossess the home.
Discounts you can use to reduce premiums
• Discount to the original owner- if you hold the original title of the home, you can get as much as 5% per annum.
• Bundling discount- this involves having more than one policy with an insurer and you can get a discount of up to 15%.
• Discount on installing security devices- installing a home security system can result to a discount of up to 15%.
• Retiree’s discount- if your age is above 55 years and you are retired, you can get a discount of up to 10%.
Different insurers provide different discounts. You should therefore enquire with your insurer or insurance agent about the discounts that you qualify. This will enable you to save on premiums. Remember that the cheapest policy is not the best. The best policy provides all the required coverage and at an affordable price. The premium rates per annum for the manufactured home insurance range between $250 and $1,300. Just like for insuring a conventional home, the rates depend on a number of factors such as the location, value and age of the home, amount of liability and personal property coverage and the deductibles.
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