Mobile Home Community Insurance: Everything You Need to Know
Today, people are adopting more modern functions than traditional ones. When we talk about conventional home facilities, the idea of the youth generation is very different from that of the older citizens.
They mostly prefer to live in open areas where they can enjoy the natural view. Not only that, but they also want their homes to be much more flexible so that they can quickly move from one place to another. So, according to their needs, a new concept emerged called a “Mobile home,” which can be easily moved from one place to another. It also has many benefits, including low prices, low maintenance costs, and much more.
The Mobile Home community can also help you choose a Home. Many insurance companies include coverage to protect your mobile home against damages or repair costs.
In this article, you will learn more about the features, advantages, disadvantages, and other essential information about “Mobile Homes.”
What is a Mobile Home?
Mobile Home Insurance is also known as Manufactured Home Insurance. It covers damages related to your personal property and home or other liability claims if anyone gets injured because of you. There is a very slight difference between Mobile Home insurance and Standard Homeowner’s Insurance.
Mobile Homes are built in factories rather than on construction sites. According to a 2017 survey, more than 17.5 million people live in Mobile Homes. Approximately 3% of all 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.,
- It is movable from one place to another, rather than slabs or basements.
- 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 discuss all the essential aspects one should know about it.
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 can be customized and has various features, including unique interior designs, different types of ceilings, and much more. 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:
- It is easily movable from one place to another.
- It takes less time to build.
- You can easily set your home in a high-priced area in a significantly cheaper way.
- The homeowner of a mobile home has to pay lower taxes than standard homeowners.
- They don’t have to spend money on maintaining their home. It is eco-friendly.
Disadvantages:
- It would charge very high depreciation if any of your property got damaged.
- As it is personal property, the cost is also quite expensive.
- It is a temporary house, so it will not protect you from natural disasters like tornados, floods, etc.
- You have a minimal option to select the design.
- 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 leases offer many Benefits to individuals. They get all the facilities from the landlords, and they are even less costly than a traditional home because they only have to pay the rent.
But, there are some drawbacks too. For instance, the individual has to follow all the rules and regulations the owner makes; the landlord may increase the rent price as and when they want, etc.
The cost of these land leases highly depends on the location, quality, and management. The estimated price is between $400-$600.
- Resident-owned Communities:
A resident-owned community, also known as a ROC, is an alternative to a land-lease community. However, 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.
However, 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 creates all the designs and operation plans. It also sells Franchises to its 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.
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 get a reasonable rate or return.
However, the investor always sets the best price for their residents. It might be yes, but it entirely depends upon the community. If the community is reputed and experienced, it always sees the best option for its residents.
If the investors only want 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 most significant 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 offer affordable living costs. Residents spend money only on maintenance, utility hook-ups, and other necessities.
- Family-focused community:
People between 18 and 29 can select this option to stay, as it provides more protection. A report shows that 23% of the US population lives there.
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 senior citizens worldwide. The primary purpose of this community is for those who want to spend their retirement life with people of the same age. A person who is 55+ can be a part of this community. The senior community gets all the benefits in this community, like a temple, some sports activity grounds, and much more.
- Luxury Communities:
Some residents want to build an expensive house and live a luxurious life, so this community is made for people whose desires and requirements are costly and extreme.
Here are some examples of such communities;
- Malibu, California, Paradise Cove
- Aspen, Colorado, Smuggler Park
- Montauk, New York, Montaul Shores
These are some of the Mobile Home Communities that 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; 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:
- Fire and lighting
- Vandalism
- Explosions
- Weight of ice and snow
- Burst pipes, and much more.
- Other Structures Coverages:
Other structure coverages include the cost of repairing any fencing, shedding, or other part of your home that needs repair. Still, this policy does not include damages.
- Personal Property Coverages:
Personal property coverages include the repair and replacement cost, which consists of any furniture item, electronics item, and other things that 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 that you cause to someone else’s 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:
- Additional living expenses
- 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 or 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 to see whether it includes any additional coverage.
Distinguish Between Mobile Home and Modular Home:
Many people find it challenging 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 homes are usually delivered to the property in one piece, whereas modular homes must be delivered 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 those places.
- A mobile home looks like a trailer, whereas a modular home looks like a traditional one.
These familiar points will help you quickly see the difference between mobile and modular homes.
Conclusion:
A mobile home is also called a manufactured home, which is 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.”