Finding the perfect manufactured home is an exciting journey! Once you’ve found the manufactured home that you want to call your own, it’s equally important that you find the perfect insurance to provide you and your family the right coverage.
No house or property can escape the possibility of a disaster or accident, so here are some key things to look for in manufactured home insurance!
1. What a Policy Covers
Obviously, the primary reason to have home insurance is to replace or repair your home if it is harmed by natural disasters like fire or flooding. However, many policies can cover more to make the unlikely event less painful.
Some policies will require the insurance provider to pay for living expenses if your family is unable to live in your home while it is being repaired in addition to the cost of the repair.
For example, if your home suffers a kitchen fire and you are unable to live in your home until the repairs are completed, some policies will reimburse you for hotel, groceries and other expenses until the repairs are completed.
2. What Affects Your Premium
As with all home insurance, your insurance provider will analyze your property to create a customized policy and determine the cost of your insurance premium.
First, the type of home being insured will have a significant impact on your premium. Whether the home is a single wide, double wide or triple wide, what kind of foundation your home is placed on, how the home is anchored to the ground, the home’s value and additional factors will be considered by the insurance company in determining the insurance premium.
Second, the region where you live will affect your insurance cost. Homes in coastal areas that are prone to hurricanes will typically require a higher insurance premium than homes in regions with a lower likelihood of severe storms.
Not all policies include flood insurance coverage, so adding a policy for flood coverage to your existing coverage could require an additional premium. Ask your insurance agent about flood coverage for your home.
Last, your financial situation can play a role in your premium. While an insurer cannot deny you insurance based on your credit score, a higher score may lead to a less costly policy.
3. Perks Besides Price
When buying anything, it’s important to shop around for the best deal. Manufactured home insurance is no different! Getting a quote from at least three different companies will help you to find the best coverage for the right price.
This said, always make sure you get the coverage you need. The cheapest may not be the best. Here are a few things to check for before deciding on a policy:
- Replacement Cost
This is the actual cost of buying your home again if it is completely destroyed. Make sure that you know what the price would be to purchase a replacement home and make sure your policy has full replacement coverage.
This is the amount you are required to pay before your insurance picks up the cost of repairs and replacements.
For example, if wind damage occurs and you need a $5000 roof repair and your deductible is $500, your insurance will pay $4500 and you are responsible for paying $500 of the repair.
Deductibles will vary, so it is a good idea to save up the amount of your deductible in the event you will be required to pay it toward a repair or home replacement.
If you are able and willing to pay a higher deductible, you can also lower your premium amount by buying a policy with a higher deductible.
- Liability Coverage
It’s hard to imagine, but people could get hurt on your property. The cost of medical bills and a possible lawsuit by someone who was injured on your property make it worthwhile to include liability coverage in your policy.
- Personal Property
Your home is more than a roof and walls; it’s also the place where you keep your most valuable possessions. It’s hard to account for everything that could be lost in a fire, so create an inventory of your most valuable possessions and keep a photo record of them. You may even decide to insure your high value possessions with separate insurance coverage.
4. Ways to Lower Your Premium
As I mentioned above, your credit score and a higher deductible may earn you a discount, but a number of other factors can help you lower your monthly or annual insurance premium.
- Install a Security System
This can lower the chance of burglary, which makes it less likely that your insurance has to cover stolen possessions. Ask your insurance agent first before installing a system to find out if doing so may earn you a premium discount.
- Getting All Your Insurance From One Provider
Insurance companies love loyal customers, so bundling different types of insurance coverage is not only easier on you, but also less expensive in many cases.
- Asking What Could Reduce Your Policy
Your insurance company doesn’t want you to make a claim. Asking your insurance agent what you could do to lower your risk (which could be as simple as removing limbs from a nearby tree) may earn you a discount.
5. A Word on Modular Homes
The term manufactured housing encompasses a variety of housing options built in facilities, but generally, homes that are called manufactured homes, homes that many call “mobile homes,” are in a special category for home insurance, while a modular home may be insured as a site built home.
Simply talk to an insurance agent and they will gladly advise you about the type of policy and coverage you should get for your home!