My Landlord Insurance Blog

Builders Risk Insurance

Saturday, December 17th, 2011 | Builders Risk, California, Detroit, Flint, Georgia, Illinios, Indiana, Insurance, Landlord Insurance, Manufactured Home, Maryland, Michigan, North Carolina, Ohio, Real Estate, Vacant Home Insurance | No Comments

Example of a Builders Risk policy offered by our agency.

Tags: arizona, Detroit, georgia, homeowners insurance, homes, insurance, investment, Landlord Insurance, michigan, ohio, out of country landlord, out of state landlord, property, Real Estate, renters insurance, vacant, Vacant Home Insurance, vacant insurance, vacant property insurance

WHAT IS THE DIFFERENCE BETWEEN A SITE BUILT HOME, MANUFACTURED HOME, AND A MODULAR HOME?

Wednesday, September 8th, 2010 | Landlord Insurance, Manufactured Home, Mobile Home, Modular Home | 170 Comments

Different types of homes require different types of insurance. How the home is built will determine what type of insurance you can buy, how much it will cost, and what it will cover in the event of a loss.

A site built home is a house that has been built where it stands. The house is built on site from the foundation to the roof. This is the most common type of home people think of when they think of a house. The foundation, walls, electrical, plumbing, insulation, and roofing are built piece by piece at the location the home is to eventually be occupied. Some homes can be moved but they are still site built homes. Traditionally built homes also must confirm with local, state, and federal guidelines. These homes are sometimes known as stick built homes but they are built from many materials like brick, stone, or lumber. A traditionally built home will usually appreciate in value over time.

The manufactured home is built differently from a traditionally built home. A manufactured home or mobile home is built in a factory. The house is built with a permanent steel chassis which is why they are commonly known as mobile homes because they are more easily moved from place to place. A mobile home also usually has a title like a vehicle rather than a deed like a home. The home has to conform with federal HUD guidelines but usually doesn’t have to conform to local building codes. Mobile homes can’t be put anywhere because they have to approved to be placed on a lot by the local authorities. Many mobile homes are in parks known as mobile home parks. The mobile home has a serial number and a plate that has information on the builder of the mobile home, heating, cooling, and components of the home. Manufactured homes tend to decrease in value over time.

A modular home also known as a prefabricated home or prefab is a hybrid of a site built home and a manufactured home. It is built in a factory like a mobile home but it does not have a permant chassis. The home is brought to the building site on a flatbed truck. The home also has to meet all federal HUD, local, and state guidelines for a traditional built home.  Modular homes are typically less expensive and faster to build than a traditional home because they are built in a controlled factory environment. A modular home has a deed and is not made to be moved once it is assembled at its final destination. Because a modular home is built on a traditional foundation, it can be hard to tell whether it is a traditional built home or a modular home and many homeowners and insurance companies are even aware the home is factory built. Modular homes when built well increase in value similar to a traditional built home.

When it comes to insurance, many companies do not write manufactured or mobile homes. They are built on a chassis which means they are mobile, they do not have to conform to local building codes, and they decrease in value over time. There are a few companies that specialize in manufactored homes and can be very comparable in rate to a traditionally built home. You should look for a company that provides coverage for fire, wind, hail, vandalism, water, and liability. Also find out how much the insurance company will pay if you lose your home completely.

Many companies that will write a traditional site built home will also write a modular home. Since they conform to all local codes and appreciate in value, they are have a similar risk profile to a stick home. Some companies may not write a home if it was built in a factory so check with your agent to be sure you will be covered in the event of a loss.

The most difficult to insure is a manufactured home that is rented to another person. It can be very hard to find a company that will write a landlord policy on a mobile home. We can write all of these homes and we would be happy to try and write your business if you give us a chance.

Tags: insurance, manufactored home, manufactured home, mobile home, modular home