A lot of people fear that manufactured homes, or commonly referred to as mobile or park homes, will have skyrocketing insurance costs. They are definitely correct and more often than not, that prevents many people from buying manufactured homes because it is required to have mobile home insurance if you want to own one.
On the other hand, the manufactured home is normally lower in value than a permanent one thus, the cost of having one, disregarding insurance, is definitely lower. For some unique reasons, the insurance cost of these kinds of homes is disproportional as the insurance is extremely costly.
Top three reasons why mobile home insurance will cost more than the average home insurance:
High Probability of Theft
An insurance company is very particular with the risk factors. When an issuer provides you with a quote, it is already considering the odds of getting a claim. Normally, stolen contents in your home are covered but one should keep in mind that failure to secure or lock the doors will nullify the claim as it is not covered due to negligence.
Not surprisingly, manufactured homes are generally not as secure as permanent houses maybe due to the tendency that these homes are often found on areas with high density of population and anonymity. Add to the fact that mobile or park homes are not really as sturdy and burglars can break in with relative ease. Most manufactured homes are not equipped with security system as well.
In other words, mobile homes are situated in locations where there is a high propensity of theft and the structure itself is more inviting for burglars. This is one of the main reasons why insurance of mobile home owners are more expensive
High Probability of Damage
Let’s face it. Mobile homes are more easily damaged than permanent homes. Firstly, mobile homes do not have anchored foundations. They are susceptible to damage when it is hit by weather phenomena like hurricanes and tornadoes. The probability of getting a mobile home lifted out of location is very high.
The materials used to build these manufactured homes are not sturdy and durable. Unlike permanent structures, they are not made of bricks, concrete, or cement. Permanent homes will also have more weather-resistant roofing than the ones in mobile homes.
Claims are more likely because of these factors. And you know the drill, high likelihood of claims means more cost to the insurance.
One must understand that insurance companies are masters of measuring risks and likelihood. Oftentimes, they do it for their benefit but don’t let it prevent you from purchasing a mobile home and having it insured.