On February 16, 2025 By newsroom Topic: Insurance Basics
Manufactured homes often come with higher insurance premiums, but there are effective ways to reduce costs while still protecting your property. Here’s a detailed guide to help you save.
Higher Risk Factors
- Manufactured homes are more susceptible to wind, hail, fire, theft, and vandalism.
- Placement in areas prone to extreme weather increases risk.
Limited Competition
- Fewer insurers cover manufactured homes, often limiting options to companies like Allstate, Farmers/Foremost, Assurant, and American Modern.
Historical Bias
- Outdated perceptions link manufactured homes with higher-risk areas or low-income demographics, which can influence pricing.
Discounts for Security Features?
- Alarms, fencing, or smart home devices like fire and CO2 detectors may qualify for discounts.
Extreme Weather Safety Measures?
- Installing storm shutters, fire extinguishers, or heat tape for pipes can lower rates.
Wind-Resistant Additions?
- Features like hurricane-resistant doors or shingles may lead to savings.
Located in a Managed Community?
- Living in a manufactured home park with on-site management may result in a 5% discount.
Age-Related Discounts?
- Original owners or those over 55 may receive up to 10% off with insurers like Allstate.
Newer Home Discounts?
- Homes less than 4 years old often qualify for reduced rates.
Claim-Free Discounts?
- Long periods without filing claims can lead to additional savings.
Veteran Discounts
- Membership with USAA offers exclusive coverage and benefits for veterans and their families.
By taking proactive measures—such as maintaining your home, installing safety features, and working with the right insurers—you can significantly lower your premiums while ensuring robust coverage.
Higher Risk Factors:
- Susceptibility to wind, hail, fire, theft, and vandalism.
- Often located in areas prone to severe weather (e.g., Midwest, South).
Fewer Insurers Competing:
- Limited competition among providers like Allstate, Assurant, and Farmers/Foremost results in higher premiums.
Historical Stigma:
- Outdated perceptions of mobile home communities as high-risk areas can influence rates.
Check Your Credit Score:
- A higher score leads to lower premiums.
- Review and fix errors on your credit report at AnnualCreditReport.com.
Bundle Policies:
- Combine home and auto insurance for savings (e.g., 10–23%).
Raise Your Deductible:
- Opt for a higher deductible ($1,000+), which can save hundreds annually.
Pay in Full or via EFT:
- Paying upfront can save 5–15%. Using EFT might reduce costs by ~3%.
Shop Around:
- Work with an independent insurance agent for competitive quotes.
Security Features Discounts?
- Security systems, fencing, and smart home tech can lower premiums.
Weather and Fire Safety Measures?
- Discounts for CO2/smoke alarms, fire extinguishers, heat tape for pipes, and anchoring ties.
Wind-Resistant Features?
- Installing storm shutters, hurricane-resistant materials, or windproof shingles may reduce costs.
Living in a "Park" Community?
- On-site management and maintenance can result in ~5% savings.
Age or Ownership Discounts?
- Original owners or those over 55 may save 5–10% annually.
Age of the Home?
- Homes less than four years old or newer homes (under five years) often qualify for discounts.
Claim-Free Record?
- Multiple years without claims can lead to price breaks.
USAA offers insurance for eligible military families with competitive rates.
Policy Transparency:
By following these strategies and asking the right questions, you can protect your manufactured home while saving on insurance costs.
