MH INSURANCE: Commonsence Suggestions When Shopping For Manufactured Home Insurance

The following contains excerpts from a Consumer Reports by Lisa L Gill Titled; “How to Save on Insurance for a Manufactured Home.”

One attraction of manufactured homes; their relatively low cost. Single-wides average $86,400 for 1,064 square feet of space, while double sections run about $158,600 for 1,757 square feet, according to the U.S. Census Bureau.

But where the math doesn’t always work out is how much a manufactured home might cost to insure: Though a manufactured home averages nearly half the size of a traditional home, its homeowner’s insurance can be twice as expensive.

So what gives?

The insurance industry points to manufactured homes’ supposed greater susceptibility to wind, hail, tornadoes. fire, theft, and vandalism.

All of these these alleged susceptibilities have been debunked, such as these examples:

A 2013 National Fire Protection report shows that manufactured homes experience up to 44 percent fewer fires than traditional site-built homes.

Plus, MHI says manufactured homes perform as well as “site-buit.” ones during a storm. They also point out that proper installation and anchoring of a manufactured  home can keep it safe in severe weather.

Another difference: Some manufactured homes may be located in areas with higher risks for theft and vandalism. “But do those differences mean insurance costs would be a little higher? Maybe. But nearly twice as much? I don’t think so,”says Dave Anderson, executive director of the National Manufactured Homeowners Association.

One problem for manufactured home insurance buyers could be the lack of competition among manufactured home insurance companies. Less competion can mean higher rates for the consumer.

No matter which company you get your insurance from, here are a few tried-and-true suggestions to help you get the best deal.

Have the highest possible credit score: For nearly any kind of insurance, including manufactured homes, having the best possible score you can will help, says Chuck Bell, CR policy analyst who works on credit scores and insurance issues. Although CR advocates think it is unfair and potentionally discriminatory to use credit history to set premium rates, for now your best course of action is to review your credit report at AnnualCredit Report.com, correct any errors you find with the credit bureaus, and deal with any debt collection notices on your report-both of which could easily raise your score once resolved.

Ask about bundling: It is always worth asking for quotes from insurance companies where yoy already have a policy and finding out whether there’s a discount for getting, say, your car and home insurance policy from the same company. You could save 10 to 15 percent. One example; American Family says bundling home and auto policies could save up to 23 percent.

Consider a higher deductible: Increasing your deductible– the amount you first pay out of pocket before insurance –from $500 to $1,000 or even $1,500 could save several hundred dollars off your premium.

Pay the premium in full: Doing so could save between 4 and 15 percent. Also ask whether using electronic funds transfer could net you additional savings. Paying via EFT might save you around 3 percent of your monthly or annual premium.