What is Modular vs. Manufactured Home Insurance?

A Modular Home: What Is It?

Building modular homes takes place in indoor facilities off-site. Each house is constructed in sections, or modules, which are then joined on the construction site, frequently with the use of a crane. Once a modular home is built, it cannot be moved, unlike a manufactured home. As opposed to this, the house is permanently supported by a slab, crawlspace, or basement, much like a site-built (or stick-built) home.

In terms of design, amenities, and construction, modular homes can be practically indistinguishable from conventional, site-built homes. They can be one level or have numerous levels. In actuality, modular homes are constructed to the same standards as conventional site-built homes.

A Manufactured Home: What Is It?

Manufactured houses are distinguished by two features: they are constructed in factories rather than on-site, and they are supported by a mobile chassis rather than a slab, crawlspace, or basement.

Even while manufactured homes can be relocated once they have been set up, most opt to stay put because doing so is expensive. Single-wide, double-wide, and triple-wide are some of the sizes available for manufactured homes, which are always one story in height.

Insurance For Modular Homes

You may secure your investment if you purchase a modular house by purchasing a typical homeowners insurance plan. Many insurance providers, such as State Farm and Farmers, don't even inquire as to whether the house you're insuring was site-built or modular. The insurance coverages are identical to those for a typical home because there are no unique insurance risks for modular homes, including:

Dwelling Coverage—If your house is damaged by a covered peril, this will assist cover the cost of fixing it up or rebuilding it. Your home's physical structure, any adjacent buildings, like a garage or deck, and any built-in appliances, like a furnace or water heater, are all covered.

Personal Property Coverage—This aids in paying for the repair or replacement of personal property that has been harmed by a covered risk. Regardless of whether the property is in your home or somewhere else, it typically covers damage and theft. For instance, insurance would pay for the loss if you brought your laptop on vacation and it was stolen (depending on the policy, of course).

Liability Protection—This helps cover medical and legal expenses in the event that a household member is held legally responsible for harm to someone else's property or for injuries sustained by a guest at your residence. Two of the most frequent accidents that result in liability lawsuits are falls and dog bites.

Insurance For Mobile Homes

An HO-7 or a mobile home form policy is often used to cover mobile and prefabricated houses. The HO-7 provides housing coverage, personal property coverage, and liability protection, the same as the HO-3 (typical homeowners insurance plans).

Even yet, despite the similarities between the two policies, a mobile home or manufactured home cannot be covered by a typical homeowners insurance policy. You must get insurance specifically made for a constructed or mobile home.

The majority of insurance policies for mobile homes don't offer coverage while the house is being moved.

Insurance for mobile homes typically costs more than regular homeowners insurance. This is due to the fact that mobile and manufactured homes are less resilient to disasters like floods and fires, more vulnerable to wind damage, and frequently more vulnerable to theft and vandalism.

Conclusion

Your home, personal items, and liability claims are all covered by home insurance. You can purchase typical homeowners insurance coverage if you own a modular home. Homeowners of prefabricated and mobile homes can purchase comparable insurance made just for their properties. A quality insurance plan can provide you peace of mind and shield you from catastrophic financial losses regardless of the type of home you own.