Mobile Home Insurance Alabama

Mobile Home Insurance Alabama – Every year, Alabama experiences more than its fair share of tornadoes (73 in 2020 alone!), and as a result, home insurance is necessary. However, coverage may be even more crucial for manufactured and mobile homeowners because they are constructed of lightweight materials and only have a foundation that is semi-permanent, mobile homes are much more susceptible to damage than homes that are constructed on site. Also, due to the transport and installation processes, mobile homes are more susceptible to theft.

Every homeowner needs to have the right kind of property insurance, and that insurance needs to be tailored to cover the particular risks that come with owning a particular home. The risks of property damage and other losses associated with your dwelling that are not present for owners of single-family homes must be reflected in your home insurance if you live in a mobile home.

A mobile home is often a more affordable way to become a homeowner, but you’ll need the same insurance as a homeowner. You might not be aware that a mobile home requires different coverage than a standard homeowners’ policy when you buy one. Due to their transportability and construction, these manufactured homes require special considerations.

Mobile Home Insurance Alabama

Mobile home insurance options in Alabama include structures, personal property, flood and other weather protection, accidental damage, loss of use, and many more.

In Alabama, mobile homes are very common. As a matter of fact, manufactured homes make up almost twice as much of the state housing market as the national average—roughly 16%. Mobile home insurance is available to Alabama residents who own manufactured or mobile homes.

 

Mobile Homes versus Tornadoes in Alabama

  • Alabama experiences 44 tornadoes annually in the first quarter.
  • The average number of tornadoes from 2001 to 2010 was only 22, skewed by an unusually high level of activity in previous years.
  • An estimated 553 people perished in the Southeast in the recent tragic series of tornadoes.
  • When the tornado struck, at least 112 of the people who died sought refuge in manufactured homes.

According to a study conducted by the National Oceanic and Atmospheric Administration, residents who attempt to flee or take shelter in mobile homes account for 49% of all fatalities caused by tornadoes. Wind damage is much more prevalent in manufactured homes than in their traditionally constructed homes.  The removal of debris and wind damage are typically covered by mobile home insurance policies. After a storm or other covered event, this coverage can assist you in repairing or rebuilding your home and even paying for medical expenses.

READ: Will Home Insurance Cover Foundation Repair?

There are nearly 320,000 mobile homes in 822 parks in Alabama. The Cotton State has the fifth highest percentage of mobile homes in the United States, accounting for more than 16% of all housing units. Also, according to data from the US Census, Alabama shipped the fourth most manufactured homes in 2019, with 4,546 units.

 

What is Mobile Home Insurance in Alabama?

If a fire, pipe burst, theft, vandalism, or windstorm causes damage to your Alabama mobile home, your expenses will be minimized as insurance policies cover the following:

  • Your house.
  • Your possessions
  • Other structures like a fence or shed
  • Additional living costs if you have to relocate temporarily.
  • Personal liability if someone harms you.
  • Medical bills to cover injuries to guests.

 

In Alabama, mobile home insurance is not required by law, but mortgage lenders do. Most mobile home parks require policies for all residents. However, you should think about purchasing mobile home insurance to safeguard your investment, even if you can pay for a manufactured home without a loan and intend to keep it on private property. Some insurers cover your mobile home based on its actual cash value, they only cover the costs of repairs based on the depreciated value.

 

Costs of Alabama Mobile Home

The cost of manufactured homes may be one reason why so many Alabamans choose them over traditional ones. In Alabama, a mobile home typically costs $45 per square foot.

 

Costs of Alabama Mobile Home Insurance

Insurance for mobile homes is more expensive than insurance for regular homes. This is because owning a mobile home carries a greater risk. According to the insurance review website, the cost of manufactured home insurance in Alabama is on average $129 per month, or $1,548 per year. However, due to the fact that they are determined by a number of factors such as:

  • Your postal code.
  • Your mobile home’s age.
  • How big your mobile home is.
  • The worth of your possessions.
  • Its condition
  • Its coverage limits
  • Its discounts
  • Its history of claims

 

Tips for Finding Cheap Mobile Home Insurance in Alabama

If you want to find cheap mobile home insurance in Alabama, you need to learn about the factors that could affect insurance rates. This is important because it lets you know what you can use to get the best rates.

The best way to compare insurance quotes is to do so online. In order to get the typical cost, you should get at least three estimates from various businesses. To get more protection, make sure to check if you require additional coverage that is not included in your current policy.

Discounts on Alabama Mobile Home Insurance

In Alabama, you may be able to cut costs on your manufactured home insurance if:

  • Your home is in a mobile home park.
  • You have smart home security devices like an alarm system.
  • You are at least 50 years old.
  • For the past three years, you have had no coverage gaps.
  • You have never filed a claim.
  • Your primary residence is your mobile home.
  • You choose a policy that is electronic.

The most effective method for determining whether you are eligible for insurance savings on your Alabama mobile home is to request a quote.

 

What is the difference between Alabama mobile home insurance and homeowner’s insurance?

The way insurance companies rate Alabama mobile home insurance, also known as an HO7 policy, and traditional homeowners insurance has a big difference. In most cases, the cost of insurance for mobile homes is higher because they are considered to be more risky than conventional homes that are constructed on a foundation.

Furthermore, manufactured homes in a park might have to meet specific insurance requirements, which could drive up costs even more.

Mobile home insurance and the most common type of home insurance, the HO3, share a few similarities despite these differences. In case of certain occurrences such as a windstorm or a pipe burst, both policies safeguard homeowners’ financial assets. They are both written with open-perils in mind for the actual house and other property structures. This indicates that they cover all events, with the exception of those specifically mentioned in the policy.

Understanding the distinctions between mobile, manufactured, and modular homes can assist homeowners in selecting the appropriate insurance policy.

How to Get a Quote for Alabama Manufactured Home Insurance

Obtaining a mobile home insurance quote is simple. A few details about your mobile home are required. They are:

  • The identification number of your vehicle (located on the data plate).
  • A rough estimate of how much your belongings are worth.
  • The requirement for insurance for your mobile home park.

 

Mobile Home versus Manufactured Home

Although the terms “mobile” and “manufactured” are frequently used interchangeably, there is technically one major difference. The standards established by the US Department of Housing and Urban Development (HUD) are met by manufactured homes.

Before 1976, a mobile home was pretty much any home that was built on a chassis and moved from the build site to the home site. However, in order to increase safety, HUD intervened and created a federal building code. The Housing Act of 1980 then mandated that all legal documents use the term “manufactured” for homes built after 1976 that met the federal building code.

Even though manufactured homes are built to modern safety standards, they are still prefabricated and built on a chassis. They are typically transported as a single unit and possibly secured to a foundation for additional security rather than assembled on the spot.

Although they are moved in sections and constructed at the location of the home, modular homes are also prefabricated. However, the most significant distinction is that modular homes do not comply with HUD’s building standards. They, on the other hand, adhere to state and local building codes.

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