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Insurance for "manufactured home" vs. "modular home"

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azdesertman

Junior Member
Hi there,

I'm living in Arizona, and I've got a question about insurance for my manufactured home (mobile). So far I'm insured with an insurance that is specialized in insurances for mobiles. Nothing wrong with that, except that the premium is a little higher than for site built homes and it is not so easy to get a higher coverage (which would just let me feel better).

Now my neighbor - who has a manufactured home like me - told me that she currently changed her insurance and now is insured with a much higher coverage for a nearly 20% lower premium. Of course, I'd like to have that too ...

When I checked about this with my current agent he immediately suggested that my neighbor's house probably has been insured as a "site built house" or as a "modular house" (a modular house is something very different than a manufactured house - see here: http://homebuying.about.com/cs/modulareducation/a/modularhomes.htm).

He then said that if such a policy would not clearly state that it is for a manufactured or mobile home the insurance would have all rights to cancel the policy any time (also after it burned down), and he said that he would know several such cases. The insurance could alway say in such a case: "You did not tell us the truth about the nature of your house, and therefore we can cancel the policy without paying anything to you." (Probably it then would be possible to sue the agent who knew all the time that this is a manufactured home - but that's kind of risky and not really an insurance.) The agent also said that most insurances insure modular homes like site built homes.

Sure enough, when I checked again with my neighbor it turned out that her house is insured as being a "modular" home.

Does anybody here know more about this issue? Is there any available information on the internet about such a "wrong declaration" in a homeowners insurance and how likely it is to loose coverage about it?

Thanks a lot!
azdesertman
(Arizona)
 
Last edited:


azdesertman

Junior Member
... just wondering: Does nobody know about this stuff, or did nobody answer because I forgot to write the state I'm living in? It's Arizona, sorry, I'm new to this forum.

Greetings
desertman
(Arizona)
 

moburkes

Senior Member
The insurance company MAY have made a mistake with your neighbor's policy. If the "free look" period has passed (generally, about 60 days) and the insurance company hasn't cancelled the policy, then they would be on the hook for any claim that would normally be covered by the policy.

You should shop around if you feel that your rates are too high. Remember, that your neighbor may have a higher deductible than you, and that many companies also look at credit. There are not many companies that insure your type of home. Good luck.
 

weenor

Senior Member
moburkes said:
The insurance company MAY have made a mistake with your neighbor's policy. If the "free look" period has passed (generally, about 60 days) and the insurance company hasn't cancelled the policy, then they would be on the hook for any claim that would normally be covered by the policy.

You should shop around if you feel that your rates are too high. Remember, that your neighbor may have a higher deductible than you, and that many companies also look at credit. There are not many companies that insure your type of home. Good luck.
Ditto...but would like to add that in our area (Alabama) Foremost has the cheapest rates for manufactured housing because they specialize in that area. Rates will also depend on whether you have an FHA approved home and your state's laws regarding manufactured housing.
 

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