Manufactured Home Insurance – The Skinny
Manufactured homes are NOT Mobile Homes.
Manufactured Homes are a prefabricated house that is largely assembled in a factory and then transported to a desired site.
First, let’s start with the classification guidelines set forth by NADA Guides.
MOBILE HOME
To qualify, a mobile home must be both of the following: 1) built before June 15, 1976, and 2) not built to a uniform construction code.
MODULAR HOME
A Modular Home is any home factory-built to a local state code. In some cases, a state may have adopted one of the uniform construction codes (i.e. UBC, IRC, etc.).
MANUFACTURED HOME
A manufactured home is any home factory-built in the U.S. to the HUD Title 6 construction standards (commonly known as ‘the HUD-code’). The HUD-code took effect June 15, 1976.
A HUD-coded home will display documentation called the Certification Label and the Data Plate. The red Certification Label (sometimes called the HUD Label) can be located on the tail end of each transportable section of the home. The Data Plate will be located inside of the home. Regulation states that the Data Plate be affixed inside the home on or near the main electrical breaker box, or other readily visible/accessible location. These documents are extremely important; as per the HUD Title 6 regulation removal is illegal. Removal could hinder the buying, selling, financing, or insuring of a manufactured home; they are not replaceable.
Example of a HUD Label for a Manufactured Home
A manufactured home is built on a permanent chassis to ensure transportability. However, typically a manufactured home is not moved from its initial installed site.
*Manufactured homes are hard to tell from traditional homes these days.
Manufactured homes are on the rise in the US and with the latest technologies and building materials, are better than ever. They are also becoming a viable option for first-time home buyers because of their modern appeal with no “baggage” older houses have and as a caveat to many prospective home buyers, they are the greener choice.
HOW DO I INSURE MY MANUFACTURED HOME?
All of the top insurance agencies, including Allstate, State Farm and Farmers insure manufactured homes differently, as they are classified differently. When considering buying a manufactured home, consult with an insurance agent in your state, for accurate information. It’s best to have this discussion before you buy. Knowledge is power.
