Why Does Insuring a Manufactured Home Cost More?
If you are thinking of buying a manufactured home, you must know that the insurance on it may be more expensive. This may not alter your decision to buy the home, but it could play a role in figuring out your monthly budget for the home.
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Generally, insuring a manufactured home costs more than a non-manufactured home. It seems silly since the homes look similar and have the same purpose – to give you somewhere to live. However, because there are higher risks with the prefabricated home, insurance companies generally charge more for the premium.
A Manufactured Home Has Higher Risks
If there’s one thing insurance companies base their premiums on, it’s the risk level you pose. The higher the risk that you will file a claim against them, the higher the premiums you will pay. Manufactured homes have a higher risk of certain types of damage including wind, fire, broken pipes, and theft.
No one can say that a manufactured home is more likely to catch on fire than a standard home. What they can say, though, is that manufactured homes are at higher risk for the fire spreading at a faster rate. This translates into more damage, which means more money from the insurance company. The more damage that occurs, the more money the insurance company has to pay out.
As you might anticipate, manufactured homes are at higher risk for wind damage because of their weight. They weigh much less than a standard home. In addition, if they are not permanently affixed to the ground, a strong wind gust could knock the home right off the ground. The damages that could occur are numerous and are nothing like could occur in a standard home. Yes, wind can cause damage on any home, but the damages are usually much less minor and less expensive.
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Broken Pipes Damage
The insulation between a stick home and a manufactured home simply do not compare. If the prefabricated home is located in a cold climate, the risk of broken pipes is very high. Frozen pipes can mean water damage throughout the home. It could even make the home unlivable. Insurance companies increase their premiums in order to cover themselves in this type of occurrence.
Mobile homes often have a higher risk for theft so insurance companies treat them as such. Even if your home is located in a ‘safe’ area, your premiums will likely be higher just because it’s a mobile home. Studies show that it’s easier for thieves to get in and out of mobile home parks unnoticed than they could if they were in a neighbored of stick homes.
Finding Affordable Premiums
Just because insurance on a manufactured home is more costly, it doesn’t mean you have to accept the first quote you get. Just like any other insurance, make sure you shop around. Talk with different agents about your needs and compare the policies they provide. Sometimes it’s more about the coverage than the premium, but you must be able to afford the premium in order for the insurance to work for you.
Take your time when looking for insurance for a manufactured home. You’ll need it before you close on the property, but make sure you have the time to look at different policies. You’ll want to make sure all risks that your home may endure are covered so that you don’t face financial ruin should disaster strike.
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