Insurance for Mobile/Manuf homes

For traditional home the owner obtains homeowners insurance and most of the time it has a 100% replacement cost clause. Meaning that in the event of damage the insurance company will pay to restore the home to it’s previous condition.

Insurance for manufactured homes is a little different, the lenders require the coverage on the home be equal to or greater than the loan size. Full replacement value does not work. This can be a challenge is for older homes in high cost areas. Because part of what the buyer is paying for is the home being located in a specific park. For example a home with direct beach access is “worth more” than the same exact 20 year hold home in a run down park in the middle of the same town. Those are numbers that don’t compute well for insurance providers in determining coverage. And some are incapable of providing the coverage the lender requires.

So what’s the answer? Shop around for a different insurance provider. There are providers that will adjust the coverage using information from the appraisal. We can refer you to a few insurance brokers that has this option.