Manufactured Home Owner’s Insurance: What You Probably Need To Know

If you are anything like me, and some people may be, my eyes have a tendency to glaze over when I try to read or understand anything about insurance. Any kind of insurance! If you can “hang in there” and read this until the end, I’ll have a money saving tip that could save you hundreds of dollars when purchasing manufactured homeowner insurance.

For the few that feel compelled to read more, I’m going to attempt to explain the little I know about the subject of manufactured home insurance. If you are someone in the process of purchasing a fabulous manufactured home, or contemplating becoming a homeowner of “America’s Dream Home,” it might be helpful for you to read on.

Manufactured home owner insurance policies are similar to site built policies, with some minimal exceptions, which are dependent upon whether the home is placed upon property that you own or sited on land-lease property. Below I have outlined the basic insurance for all manufactured homes, regardless of the placement location, and some “extras” that you probably should consider based upon your personal circumstances.

Comprehensive Coverage

This is included with most manufactured home policies and will cover perils such as fire, wind, smoke, damage to trees, shrubs, and lawns, falling objects, lightning, theft, vandalism, explosion, landslide, attempted or actual burglary or robbery, water damage from bursting pipes, damage by wild or stray animals, collapse from weight of ice and snow, and hail damage.

Note: Some comprehensive plans may not include coverage for water damage caused by bursting pipes. Based upon my experience this is an important coverage in the policy that you should insist to be included. A water heater bursting can create expensive damage to walls, floor coverings, cabinets, etc., including replacement cost of the water heater itself.  It does happen more often than you might think in all forms of housing.

Broad Form Coverage “Extras”

This covers physical damage to your home if caused by specific perils such as additional living expenses, food spoilage, personal injury, water damage from sewers and drains, and other perils that you might consider. In other words, you can “design” your own policy to fit your needs and concerns.

Flood Insurance Coverage

Flood insurance is a smart idea no matter where your manufactured home is located. Anywhere it rains, it can flood. Floods are the most common natural disaster. Flood insurance is available through an insurance agent offered through The National Flood Insurance Program. The cost of flood insurance is based upon home location being in a low to moderate risk area or a high risk area. Flood insurance can be for the home only, or contents only, or for home and contents.

Cost of Manufactured Home Insurance

The premium costs can vary from state to state. There are thousands of insurance agents that sell manufactured home insurance across the U.S. which includes many manufactured home dealers who are licensed to sell physical damage manufactured/mobile home insurance.

The largest company in the country that specializes in mobile home insurance is the Foremost Insurance Company. Foremost is a company that I have known and done business with for many years. For pricing and additional information the Foremost toll free telephone number is: 1-800-527-3907 or online at www.foremost.com

A Money Saving Manufactured Home Insurance “Tip”

Here’s something you probably should be aware of when deciding how you will be paying for your manufactured home insurance policy.

If you finance your home, you will be required to prepay your insurance premium for a minimum of one year and show proof of same with an insurance binder prepared by your insurance agent before your loan will be funded and your sales transaction can close.

Here is the problem. Often times the seller/dealer of the new manufactured home is also an agent and will sell you the insurance policy and include the premium into the balance financed with no cash outlay from you. So where is the problem, you ask?

If you agree to purchase a 1 year, 2 year, or 3 year policy you will be paying interest on that policy for full 15 or 20 year term of the loan. When that initial policy expires, you will have to renew or buy a new policy while still paying for the original policy even though it has expired.

It is much wiser to pay cash for your insurance, or at least finance the premium separately from the home contract with the selling agent for a term no longer than the term of the policy period.

Enjoy your new dream home!