Manufactured homes, also known as mobile homes or prefabricated homes, are a housing option that allows millions of families to enjoy having their own homes. Despite today’s exorbitant housing prices for site-built homes, manufactured homes are an affordable and energy-efficient alternative.
According to the South Carolina Revenue and Fiscal Affairs Office, an estimated 371,360 manufactured (mobile) homes exist in the state of South Carolina. Nationwide, more than 18 million Americans live in mobile or manufactured homes. Based on this high volume, it seems manufactured homes are quite popular.
If you are confused about insurance requirements for manufactured homes, we are here to help. Sandifer Insurance Agency has over 40 years of experience in helping families get the best insurance for their homes. If you are looking for mobile home insurance, reach out to us today.
| Key Takeaways 1. Manufactured homes require different insurance than site-built homes. 2. Insurance requirements for mobile homes vary from state to state. 3. Replacement cost is recommended over actual cash value policies. |
Like any other home, if your manufactured home is financed, you’re required to have insurance. But, before we talk about manufactured home insurance, let’s look at some of the ways manufactured homes differ from mobile homes.
Manufactured Homes vs. Mobile Homes: What’s the Difference?
The terms manufactured home and mobile home are often used interchangeably, but there are a few subtle differences between them you might not know about. Here are some examples:
> Mobile homes are built to be transported from place to place. They’re built on a frame and are not anchored to the ground. Mobile homes are not as energy-efficient or as sturdy as manufactured homes.
In 1976, the National Mobile Home Construction and Safety Act set federal standards for mobile homes. According to the HUD Code, all homes that meet those standards are to be called manufactured homes in all literature and federal laws referring to factory-built homes built after 1976. Despite the new regulations, the term mobile home is still used today to describe factory-built homes.
> Manufactured homes are also built on frames in large, climate-controlled factories. As soon as they reach their destination, they will be anchored to the ground. Manufactured homes will be connected to public utilities and are seldom moved to another location, but it is possible to do so.
In addition to mobile homes and manufactured homes, modular homes are another affordable housing option. Modular homes are built to all state and local building codes while manufactured homes only comply with the HUD Code. Some states require modular homes to be permanently set up on the site without a steel framework.
Is Manufactured Home Insurance the Same as Homeowners Insurance?
Whether you refer to your home as a mobile or a manufactured home, you want to be sure you have the best insurance coverage for your needs.
Although manufactured home insurance is similar to homeowners insurance, there are a few differences to consider. Due to their lightweight construction, manufactured homes are more vulnerable to weather damage than site-built homes. As such, they are unlikely to qualify for a traditional homeowners policy.
To help you get the right insurance coverage for your manufactured home, we’ve provided some of the most frequently asked questions about this type of insurance.
- Am I required to have manufactured (mobile) home insurance?
No, by law you are not required to carry insurance. But, if the home is financed, the lender will require proof of insurance. Also, if you plan to place your home in a mobile home park, they may require proof of insurance. Even if your home is paid for, it’s wise to have insurance in case your home or personal property is damaged.
- What does manufactured home insurance cover?
Similar to homeowners insurance, manufactured or mobile home insurance provides standard coverages such as:
Dwelling Coverage: Covers the costs of repaiing or rebuilding the structure including attached structures such as decks or awnings.
Other Structures Coverage: Covers structures on your property that are separate or not attached to the home. This coverage applies to things like sheds or fences.
Personal Property Coverage: Applies to personal items such as electronics, furniture, and clothing. Things such as art, jewelry, or collectibles are covered up to a pre-specified limit. However, you can purchase an endorsement that increases the coverage.
Personal Liability Coverage: Covers you in the event you are held legally responsible for injuries or damage to a person or their property.
Loss of Use Coverage: Also known as additional living expenses, this coverage helps cover costs such as a hotel and other expenses if your home is damaged and uninhabitable.
- Are there any coverage exclusions?
Like homeowners insurance policies, manufactured home insurance has a few exclusions you should know about. They may include:
- Sewer backups
- Earthquakes
- Floods
- In-transit incidents
- Routine maintenance
- Pest control
- Deterioration, rust
- Home-based business
- Mold (unless caused by a covered peril)
You may be able to purchase separate insurance for these exclusions, so be sure to talk to an agent about the available options. A local agent is your best source of information on varying state requirements. If you are a resident of South Carolina, contact Sandifer Insurance Agency in Cheraw, SC. We will make sure your insurance meets state-specific regulations.
- How much does manufactured home insurance cost?
Rates for manufactured home insurance are determined by several factors such as:
- Location – Rates vary from state to state and in certain locations.
- Coverage – The policy’s coverage, limits, and deductibles affect the cost of your insurance.
- Endorsements – Riders or endorsements that add additional coverage will affect the cost.
When setting the policy limits, you want to choose an amount that is sufficient to replace your home in the event of a total loss. The price of mobile homes, construction costs, and labor costs have increased significantly in recent years. So, rebuilding or replacing your home could cost more than you expect. Consider adding extended replacement coverage just to be on the safe side.
- Are discounts available?
Depending on the agency or the insurance company, you may be eligible for manufactured home insurance discounts. You may get a discount based on the age of your home, age of the insured person, or if you insure another item like an ATV or boat.
Contact Sandifer Insurance to Learn More About Manufactured Home Insurance
You worked hard to buy your manufactured home and want to protect your investment. It is our goal to help you do just that. Insurance for mobile homes can be confusing, so let the skilled agents at Sandifer Insurance help you choose the right coverage.
We also offer auto, life, farm, and commercial insurance if you’d like to save money by bundling your insurance policies.
Contact Sandifer Insurance Agency for a free no-obligation quote on your manufactured home insurance. We collaborate with top insurers to make certain your home is fully protected.
Sources:
scmobilehomebuyer.com/ – The Difference Between Mobile Homes and Manufactured Homes in South Carolina
rfa.sc.gov/ – Estimated Number of Mobile Homes by County
valuepenguin.com/ – Mobile Home Insurance: Do You Need It and What It Covers
ncsl.org/– How Manufactured Homes Can Build Housing Stability