The Difficulties In Obtaining Manufactured Home Insurance

A manufactured home insurance policy provides coverage for an owner of a mobile or manufactured home. The types of plans that are available for manufactured homeowners are similar to those that are purchased by regular homeowners.

Since manufactured homeowners are typically lower income individuals, there are some difficulties associated with obtaining manufactured home insurance. These difficulties can include finding insurance coverage for older manufactured homes, finding insurance companies that are willing to write coverage and some policy limitations such as dealing with water damage.

Difficulty #1: Coverage for Older Homes

Older manufactured homes that are found in mobile home communities across the United States may be more difficult to obtain affordable coverage for than a newer manufactured home. These difficulty stems from the age of the home and the fact that newer homes do not have the same wear issues as an older manufactured home. An insurance company may find it more risky to extend coverage for these types of homes under the belief that claims experience will be greater.

Manufactured home coverage helps owners of older homes maintain them and give peace of mind to the lender and the owner. The owner of an older manufactured home will pay more in premiums in order to obtain coverage.

Difficulty #2: Finding Insurance Companies

Many insurance companies choose not to offer manufactured home insurance. The risks associate with damages and loss to a manufactured home is greater than what it is for other types of homes. This risk translates in more liability on the part of the insurance company and results in more money being paid out in the form of claims.

This difficulty in finding insurance companies that are willing to underwrite the risk associated with manufactured homes results in lower competition and higher premium costs to the manufactured homeowner. A manufactured homeowner should take the time to compare rates between companies that offer manufactured homeowner insurance and be willing to negotiate rates in order to find affordable coverage.

Difficulty #3: Dealing with Water Damage

Yet another difficulty with manufactured homeowner insurance has to do with stripping or lowering benefits. One such benefit is providing coverage to deal with loss due to water damage. Some manufactured homeowner insurance companies will not cover water damage. This type of limitation may invalidate coverage for many mobile homeowners, including those that purchase older manufactured homes.

As difficult as it is to find manufactured homeowner insurance, there are policies out there that will provide homeowners with an adequate level of protection. These plans require research and a willingness to review plans and negotiate benefits.