Do you know what to look for in your home insurance coverage? Find out what to consider in a policy for your new manufactured home with our helpful breakdown.
At Clayton, we understand that buying a new home is a big step, and we want to help you start your homeownership journey on the right foot. Home insurance is a smart way to protect your family and your home in the event of a disaster, such as a fire, and other unexpected events. Below is some information to help you get started on finding the right manufactured home insurance for you.
Home insurance, also known as hazard insurance, protects from losses and damage to your property caused by perils, which are exposures to dangers or threats. Depending on what your chosen insurance provider considers a peril, these can include, but are not limited to, fire, burglary, tornadoes, burst pipes and more. Remember, homeowners insurance is not the same thing as mortgage insurance; home insurance protects your property.
We all want to protect what's dear to us, especially our homes, but home insurance is also important to have to make sure you comply with your chosen mortgage lender's requirements. Most mortgage lenders require you to have home insurance and generally require proof that your policy is active. The choice of home insurance providers and your policy details, however, is always up to you.
The homeowner’s insurance for your manufactured home might look a little different from a typical insurance policy on a site-built home, depending on the specific policy. But don’t worry, you can find out more about how to protect your home and what to consider when choosing a policy below.
Manufactured home insurance has similarities to insurance for a site-built home, typically covering property damages and liability if someone is injured at your home. However, different home types fall under different types of insurance, so insurance providers will have policies tailored to each home type. Your coverage may vary based on the policy and the plan you choose, and the cash value vs. replacement cost for your home is also taken into consideration. So, it’s important that you do your research ahead of time to ensure that you and your home are protected in case of any unforeseen circumstances. Consider talking to more than one insurance provider to make sure you obtain the coverage that is right for you.
When researching insurance for your manufactured home, there are a few important details to look for, including:
It's also important to double check that events like floods, earthquakes and other natural disasters are covered by your insurance policy as well. What coverage comes standard in your policy will vary by each insurance provider. Some insurers cover the “named perils” —insured perils called out specifically — that are listed in your policy and may require additional coverage for floods and earthquakes. Other insurers may have “open peril” policies that cover an extensive amount of perils, with any uncovered ones otherwise specified.
Now that you have the basics of manufactured home insurance down, you’re ready to tackle some other questions you may have. Wondering about different types of home loans? Want to find out about things like property taxes, escrow, or budget tips? Like good home insurance, we’ve got you covered! Check out our home investment articles and learn more.
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