You may have heard the terms “manufactured home” and “modular home” used interchangeably. However, they are some key differences between modular and manufactured homes. For starters, some of this confusion might stem from the fact that modular homes are manufactured. Read on to help understand the differences between the two and whether it affects your insurance coverage.
Modular Homes Explained
A modular home is a home that is entirely constructed in a factory and transported to the build site on a flatbed truck. These homes must meet strict quality-control requirements before the home can be delivered to the location. In general, modular homes are treated similarly to site-built homes. Though they are assembled from pre-built sections, they are typically set on a traditional foundation and must be structurally inspected by professionals to adhere to local building codes.
You’ll often find that modular homes allow for a decent level of customizations, but you won’t have as many options as you’d get with a site-built home.
Manufactured Homes Defined
A manufactured home is the most recently label for what were once called mobile homes. Often these homes are relatively inexpensive, small and are held to less stringent standards than a modular or site-built home. These homes have the obvious benefits of mobility and affordability. They can allow a buyer to make a home purchase without a serious monetary or geographical commitment.
These homes are built offsite and in a controlled environment. They can bet set on piers, a crawlspace or a conventional foundation, depending on the needs of the buyer. Manufactured homes are available in three sizes: single wide, double-wide and triple-wide. They must also conform only to Housing and Urban Development (HUD) code.
Insurance Differences Between Modular and Manufactured Homes
If you own a modular home, you’ll require the same type of homeowners insurance as that of a traditional home. If you own a manufactured home, you’ll likely have to purchase mobile home insurance, but the coverages can be very similar to your standard homeowners insurance.
Home takes many forms, but one thing remains the same: You want your home to be protected. No matter what type of home you purchase, you may want to consider:
Replacement Cost Coverage
Pays for a new mobile home of similar style and cost if your newer (typically less than five years old) mobile home is destroyed by a covered loss. You’ll need separate coverage for your detached garage.
Personal Property Insurance
Valuables like cameras, jewelry and electronics may not be covered or special limits may apply. You may need to review whether any additional coverage is needed.
If someone gets hurt on your property, are you protected? With an umbrella policy, you can be.
Residential Equipment Breakdown Coverage
This coverage can protect your home systems in the event they break down. This includes furnaces, air conditioners, hot water heaters and other appliances.
Coverage Built for You
Whether it’s your home, your car, your family or your future, Farm Bureau is here to help you protect it. Contact your local Farm Bureau agent today to create a plan built for your needs.