Manufactured Home Insurance Companies
There are several obvious differences in mobile or manufactured homes as opposed to those built on a foundation. This is the main reason why they are handled slightly differently than site-built homes when it comes to insurance. No matter how it’s constructed, your client’s home is important to them and their families, and is most likely their biggest asset.
In order to help protect their investment, you need to make sure they have the right coverage in place. As a representative of manufactured home insurance companies, you should be familiar with the type of coverages available and should be able to help them get the exact coverage they require for their specific needs and budget.
While standard homes generally tend to increase in value over the life of a mortgage, manufactured or modular homes generally decline in value over time, which makes for a bit of a challenge for you as an insurer. This major difference in the decline in value of the home will obviously affect the cost of manufactured home insurance. In addition, the tendency to have a greater risk of loss only adds to the complexity of the situation.
Increased risks due to weather, accidents
There is the increased risk for damage due to weather, since manufactured structures are typically not built onto a foundation (modular homes being the exception). Add to this the fact that the building materials used in construction tend to be lighter in weight than site-built homes and this also makes them statistically riskier for fire damage as well.
Also, manufactured homes are built in a factory and then transported, which means that they can have structural integrity issues from moving from one location to another. Quite a few of the homes built in the past decade or so have been found to have sagging roofs, while others suffered from sloping outside walls, or foundations with visible cracks or crumbling.
Brokers and agents therefore must carefully measure the risks that are inherent in these homes when they are in the process of issuing a policy. Insurers are trusted to make sure they’re doing all they can to keep their client’s homes safe and reduce their risks, which can potentially earn them discounts on coverage from manufactured home insurance companies.