Modular Homes vs. Manufactured Homes: Insurance Distinctions

Differentiate between insurance considerations for modular homes and manufactured homes to ensure the appropriate coverage for your type of dwelling.

Modular homes and manufactured homes are two distinct types of prefabricated homes, and they have different insurance considerations. Here are the key insurance distinctions between modular homes and manufactured homes:

Modular Homes:

  1. Construction and Placement:

    • Modular homes are constructed in a factory in sections or modules, much like manufactured homes. However, the key difference is that modular homes are built to meet the same local building codes and standards as traditional site-built homes.
  2. Foundation:

    • Modular homes are typically placed on a permanent foundation, similar to traditional homes. They can be installed on a basement or crawl space, and they often have a concrete slab or full foundation.
  3. Insurance Coverage:

    • Insurance for modular homes is typically similar to that of traditional site-built homes. You can purchase standard homeowners insurance policies to cover the structure, personal property, and liability. The coverage is based on the value of the home and its location.
  4. Location:

    • Modular homes are generally placed on private land or in residential neighborhoods, similar to traditional homes. They are subject to the same zoning and building regulations as site-built homes.
  5. Resale Value:

    • Modular homes typically have good resale value because they are considered real property and meet local building standards. This can positively impact insurance costs as well.

Manufactured Homes (Mobile Homes):

  1. Construction and Placement:

    • Manufactured homes, often referred to as mobile homes, are also constructed in a factory and transported to their final location. Unlike modular homes, they are not constructed to the same building codes as site-built homes.
  2. Foundation:

    • Manufactured homes can be placed on either a permanent foundation or on piers and anchors. Those on piers and anchors are considered personal property and may require different insurance.
  3. Insurance Coverage:

    • Insurance for manufactured homes may require specialized coverage. You can choose between coverage for the home as personal property (similar to renters insurance) or as real property (similar to traditional homeowners insurance). The type of coverage you need depends on how the home is classified and the foundation it sits on.
  4. Location:

    • Manufactured homes are often located in mobile home parks, which may have their own specific insurance requirements. They are subject to different zoning and building regulations than traditional homes.
  5. Resale Value:

    • Manufactured homes generally have lower resale values compared to traditional homes. This can impact insurance costs and the type of coverage needed.

In summary, the key insurance distinction between modular homes and manufactured homes is in the way they are constructed, placed, and their compliance with local building codes. Modular homes are typically treated like traditional homes and have similar insurance considerations, while manufactured homes may require specialized coverage and may be subject to different zoning and insurance requirements based on their foundation and location. It's important to work with an insurance provider experienced in both types of homes to ensure you have the right coverage for your specific situation.

Modular vs. Manufactured Home Insurance.

Modular homes and manufactured homes are two different types of homes that are often confused with each other. However, there are some key differences between the two types of homes, and these differences can affect how they are insured.

Modular homes are built in sections in a factory and then assembled on a permanent foundation at the home site. Modular homes are considered real property, just like traditional stick-built homes.

Manufactured homes are also built in sections in a factory, but they are not designed to be attached to a permanent foundation. Manufactured homes are considered chattel property, which means that they are considered personal property like a car or RV.

Modular home insurance is similar to traditional homeowners insurance. Modular homes are typically insured using a standard homeowners insurance policy, and the coverage and premiums are similar to those for traditional stick-built homes.

Manufactured home insurance is different from traditional homeowners insurance. Manufactured homes are typically insured using a special type of insurance policy called a mobile home insurance policy. Mobile home insurance policies typically cover the same perils as homeowners insurance policies, but they may have higher premiums and lower coverage limits.

One of the main reasons why manufactured home insurance is more expensive than modular home insurance is that manufactured homes are more susceptible to certain types of damage, such as wind damage. Additionally, manufactured homes are not considered to be as valuable as traditional stick-built homes, so insurance companies may be less willing to offer coverage.

If you are considering buying a modular or manufactured home, it is important to understand the difference between the two types of homes and how they are insured. You should also talk to your insurance agent to get quotes for both types of insurance so that you can choose the policy that is right for you.

Here are some additional tips for insuring your modular or manufactured home:

  • Shop around and compare quotes from multiple insurance companies.
  • Make sure that your policy covers the perils that you are most concerned about.
  • Choose a policy with a deductible that you can afford to pay.
  • Consider bundling your home insurance with other types of insurance, such as auto insurance or life insurance.
  • Review your policy regularly to make sure that you still have the coverage you need and that you are getting the best possible rate.