Mobile Home Community Insurance: Everything You Need to Know

Mobile Home Community Insurance: Everything you need to Know

In today’s era, we know that people are adopting more and more modern functions than traditional ones. And when we talk about traditional home facilities, then the idea of the youth generation is very different from the older citizen. 

They mostly prefer to live in open areas, where they can enjoy the natural view. Not only that, but they also want their home to be much more flexible so that they can place easily from one place to another. So, according to their needs, a new concept arise named a “Mobile Home,” which can be easily placed from one to another. It also has many benefits, including low prices, low maintenance costs, and much more.

The Mobile Home also has a community that can help you choose a Home. Not only that, but so many insurance companies include coverages to protect your mobile home against damages or repair costs. 

In this article, you will learn more about the features, advantages, disadvantages, and all the other essential information about “Mobile Home.” 

What is a Mobile Home?

Mobile Home Insurance is also known as Manufactured Home Insurance. It covers the damages related to your personal property, home, or other liability claims if anyone gets injured because of you. There is a very slight difference between Mobile Home and Standard Homeowners Insurance. 

The Mobile Homes are built in the factories rather than on the construction sites. According to a survey conducted in 2017, more than 17.5 million people live in Mobile Homes. Approximately 3% of all the housing is in urban areas, and the remaining 15% is in rural areas.

Characteristics:

Mobile Home has two distinct characteristics compared to standard homeowners insurance, i.e.,

  1. It is movable from one place to another, rather than slabs or basements.
  2. Mobile homes are manufactured in factories rather than on-site.

Not all people have detailed information about the concept, as it is new compared to other concepts. So, in this article, we will guide you in detail regarding the “Mobile Home” and also discuss all the essential aspects one should know about the Mobile Home. 

Size of Mobile Homes:

We all know that the size of any house is different. It entirely relies upon the homeowner. But, when it comes to the size of a Mobile Home, then it is categorized into three distinct parts, such as;

  • Single Wide, the width of single wide is up to 18 feet, and the length is up to 90 feet.
  • Double Wide, the width ranges between 20 to 36 feet, and its length is up to 90 feet.
  • Triple Wide, the width of triple wide is up to 50 feet, and its length is up to 90 feet.

The main benefit of a Mobile Home is that it is customized and has varieties of features, including unique interior designs, different types of ceilings, and much more. And one of the drawbacks of Mobile Homes is that the purchasing options are minimal.

Advantages and disadvantages of Mobile Home:

The advantages and disadvantages of Mobile Homes are as follows:

Advantages:

  1. It is easily movable from one place to another.
  2. It takes less time to build.
  3. You can easily set your home in a high-priced area in a significantly cheaper way.
  4. The homeowner of a Mobile Home has to pay lower taxes compared to standard homeowners.
  5. They don’t have to spend on the maintenance of their home.
  6. It is eco-friendly.

Disadvantages:

  1. It would charge very high depreciation if any of your property got damaged.
  2. As it is personal property, the cost is also quite expensive.
  3. It is a temporary house, so it will not protect you from natural disasters like tornados, floods, etc.
  4. You have a minimal option to select the design.
  5. If you have settled your home on someone else’s property, you must also pay rent charges to them.

Different types of Mobile Home Communities:

List of different types of Mobile Home Communities:

  • Land-Lease Communities:

Mostly, the Mobile Home community is set up in these areas. The land on lease community means an individual or any business entity owns the land, and then they give their property on lease to any individuals and charge rent from them.

Land-Lease gives many Benefits to individuals. They get all the facilities from the landlords, which is even less costly than a traditional home because they only have to pay the rent charges. 

But, there is some Drawback too. For instance, the individual has to follow all the rules and regulations, which the owner makes, the landlord may increase the rent price as and when they want, etc.

The cost of these Land-Lease highly depends on the location, quality, and management. The estimated price is between $400-$600.

  • Resident-owned Communities:

A resident-owned community is an alternative option to a Land-Lease community and is also known as ROCs. But, it is less popular than the land-lease community. 

In ROCs, the homeowners join together to make a business entity known as a Cooperative. The Cooperative means that the homeowners own the land and manage the community, and all the homeowners have their share in the ground.

The Benefit of this community is that it controls the monthly rent, maintenance, and amenities. It also protects against any natural disaster, and its directors make all the decisions related to the community.

But, the Drawback of this arrangement is that homeowners’ responsibility may increase in this community.

  • Mobile Home Park Chains:

We know that Mobile Homes communities work independently. They do not need any other legal support. But, when it comes to the Mobile Home park chain, it works in a chain, which means all the home parks have similar concepts and ideas.

The central administration controls the Park chain and makes all the designs and operation plans. They also provide Franchises to their customers. 

The Benefit of the Mobile Home Park Chain is that, as the central administration controls the park chain, it offers protection against its bad landlords.

And the Drawback is that the community cannot decide single-handedly, as the central administration controls it.

  • Investors as Owners:

Nowadays, America is facing a shortage of affordable housing. Against that, the Mobile Home industry is rising daily because the Mobile Home community is one of the best options for investors to invest their money and gets a good rate or return.   

But, the investor always sets the best price for their residents. It might be yes, but it completely depends upon the community. If the community is reputed and experienced, they always see the best option for their residents.

If the investors are only looking to increase their profit margin, they add some of the resources in their community and increase the rent price, which is only affordable by some.

  • Budget Communities:

The price factor plays the biggest role in living in a Mobile Home. The average living expense in a mobile home is $28000, which is comparatively less than a traditional home expense.

Many parks and communities provide an affordable cost of living to their residents. The resident only has to spend their money on some maintenance, hook-ups for utilities, and some more commodities.

  • Family-focused community:

People between 18 to 29 can select this option to stay, as it provides more protection. A report shows 23% of the US population lives in this area.

Many parks are specifically built for families. They have also given some space for a yard where their children can play games, may have swimming pool facilities, and much more. 

  • Retirement/55 + communities:

This is one of the largest communities made for all senior citizens worldwide. The primary purpose of this community is for those who want to spend their retirement life with same-age people. A person who has 55+ age can be a part of this community. The senior community gets all the benefits in this community, like a temple, some sport activity grounds, and much more.

  • Luxury Communities:

Some resident wants to build an expensive house to live a luxurious life. So, this community is made for people whose desires and requirements are extreme and expensive.

Here are some examples of such communities;

  • Malibu, California, Paradise Cove
  • Aspen, Colorado, Smuggler Park
  • Montauk, New York, Montaul Shores

So, these are some of the Mobile Home Communities which play a very important role in choosing the best option.

What does Mobile Home Insurance cover:

There are a few factors that are covered under the Mobile Home Insurance coverages:

  • Dwelling Coverage:

Dwelling coverage means a coverage policy that covers the expenses of your mobile home, but it has limited options. You will use this policy according to the opportunity that you have chosen.

Following is the list of Dwelling coverages that the residents generally use:

  1. Fire and lighting
  2. Vandalism
  3. Explosions
  4. Weight of ice and snow
  5. Burst pipes, and much more.
  • Other Structures Coverages:

Other structure coverages include the repairing cost, such as repairing any fencing, shedding, or any other part of your home where repairing is needed. Still, it does not include any damages in this policy.

  • Personal Property Coverages:

Personal property coverages include the repair and replacement cost, which consists of any furniture item, electronics item, and other things which may get damaged or stolen by someone. The standard mobile home policy covers the actual cost of your personal property.

  • Liability Insurance:

Personal liability insurance protects you from any legal procedure. It covers the expenses which you cause to someone else property, such as if you accidentally cause any damages or injury to someone. This policy protects you from any legal procedure.

  • Additional Coverages:

The additional coverages offered by some insurance companies are as follows:

  1. Additional living expenses
  2. Trip Collision Coverages

Things Not Covered by Mobile Home Insurance:

Here is the list of not-covered insurance policies:

  • Any damages incurred due to flood
  • Earthquake
  • Animal Infestation
  • Damages associated with your home for business purposes, etc.

Tips for Buying Mobile Home Insurance:

The below-mentioned are some of the tips that all have to consider regarding Mobile Home Insurance:

  • The first thing is to regularly check the changes your insurance company makes to your policy.
  • List your mobile home contents and upgrade it every year.
  • Add smoke detector equipment to your home and find out if your insurance company provides any discounts for them.
  • Before adding any room or extra shade, recheck your policy, whether it includes any additional coverage.

Distinguish Between Mobile Home and Modular Home:

Many people face difficulty when they have to differentiate between mobile homes and modular homes. Here we discuss some of the expected points using which you can quickly get a clear idea about both houses.

  • Mobile Home usually delivered to the property in one piece, whereas Modular Homes need to be delivered to the property in multiple parts.
  • A manufactured home is generally built on a metal frame, whereas a modular home is built using more traditional functions.
  • Mobile homes are easily removable and replaceable, whereas modular homes are permanently fixed at that places.
  • A mobile home looks like a trailer, whereas a modular home looks like a traditional one.

These are familiar points through which you can easily see the difference between Mobile Homes and Modular Homes.

Conclusion:

Mobile Home is also called Manufactured Home, made in a factory. The main advantage of this type of Home is that it is very flexible and less expensive than the modular home. Many different communities help residents find the best Mobile Home options. Not only that, but you can also take the help of your insurance company, which offers you a few damage and repair coverages. This article also discusses all the other essential information that can help you understand “Mobile Homes.”

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