Thanks to their pricing and flexibility, mobile and manufactured residences have become a reasonable option for prospective homebuyers in Southern California. If you are interested in acquiring one of these properties, you should be aware of how insurance companies write policies for manufactured or mobile homes. Here are the five more important considerations in this regard.
1. Mobile and Manufactured Homes Are Not RVs or Modular Dwellings
The determination of homeowners insurance coverage is based on the dwelling structure. First of all, a recreational vehicle or a camper that can be easily removed from a lot is not considered a mobile home and would require acquiring RV insurance in San Diego. Second, a modular home made with prefabricated materials assembled on a foundation is treated as a traditional, site-built structure. Dwellings made in a factory and transported to lots fit the definition of mobile or manufactured homes.
2. Basic Mobile Home Coverage Is Similar to Regular Home Insurance
In terms of coverage, insurance policies for mobile homes have a lot in common with their traditional counterparts. Aside from the standard provisions related to property damage, you can also expect basic liability coverage in case a guest or neighbor is accidentally injured while visiting your mobile home. In case of theft, fire, or a natural disaster, your personal property will also be covered. Basic home insurance may not provide sufficient coverage for your financial needs, which is why you should inquire about a comprehensive policy and low deductible plans. If you live in an area that is sensitive to drought conditions, make sure to ask about wildfire risks and coverage.
3. Earthquake Coverage Is Available for Mobile Homes
The California Earthquake Authority provides coverage to owners of mobile homes. For the most part, mobile homes and manufactured dwelling structures tend to be more vulnerable to seismic events than site-built properties, which means earthquake coverage is essential.
4. Premiums Are Not Always Higher for Mobile Homes
While it is true that insurance companies generally face more risks as they write policies for mobile and manufactured homes, premium pricing is about the same as site-built properties, and in many cases it may be lower. Single-family residences in California are among the most expensive in the United States, which means homeowners are often subject to higher insurance premiums. Since mobile homes are typically priced lower, insurance premiums will be more affordable in many cases.
5. Mobile Home Insurance Is Mandatory in Some Cases
Quite a few banks offer mortgage financing for mobile home purchases, and they often make property insurance a closing condition. Moreover, lenders may appoint servicing entities to collect monthly payments from borrowers and fund escrow accounts set up to cover premium payments. Force-placed insurance is another measure mortgage lenders may take to ensure their collateral is protected at all times. This happens when coverage lapses or a San Diego homeowners insurance company declines to extend an existing policy.
If you need reliable homeowners insurance, reach out to American Tri-Star. We also provide cheap auto insurance. San Diego residents can call 619-272-2100 today for a free quote.