Consumer Reports | Tips for Reducing Insurance Costs for Manufactured and Tiny Homes

Manufactured and tiny homes undoubtedly offer more affordable housing options than their traditional counterparts. However, a surprising expense often follows the purchase: insurance, which can sometimes double the overall cost. In this report, 10 News collaborates with Consumer Reports to uncover strategies for securing lower premiums.

Consumer Reports contributor Lisa Gill, who resides in a tiny home herself, shares her perspective. She finds delight in her tiny home’s bathtub and the absence of a mortgage. Gill acknowledges that while her annual insurance expenses are steep, she has implemented several measures to mitigate these costs.

The growing popularity of tiny and manufactured homes is undeniable, but it can come at a significant expense. Home insurance prices for these dwellings can be twice as high as those for traditional homes. Why is insuring less home more expensive? The insurance industry attributes this to the increased susceptibility of such homes to wind, hail damage, tornadoes, fire, theft, and vandalism when compared to their traditional counterparts.

However, there may be more to this issue than meets the eye. Gill points out that certain consumer advocacy groups suggest insurance companies might be inclined to exploit financially vulnerable individuals, charging them more for fewer coverage benefits. Additionally, outdated discriminatory practices from a time when mobile home parks were primarily situated in economically disadvantaged and high-crime ZIP codes may still influence insurance rates.

Considering that only a handful of companies offer insurance for manufactured homes, limited competition can result in higher premiums. When seeking a policy, Gill advises considering the efficiency of collaborating with a local independent agent rather than solely relying on online searches.

Here are four additional strategies to save on insurance costs:

1. Maintain an Excellent Credit Score: Ensure you have the highest possible credit score, as your credit history can impact your premium rates.

2. Explore Bundling Opportunities: Inquire about potential savings by bundling your home and car insurance policies with the same company.

3. Adjust Your Deductible: Consider opting for a higher deductible amount, which requires you to cover more initial costs out of pocket before your insurance coverage kicks in. This adjustment, whether set at $500 or even $1,500, could result in significant savings on your premium.

4. Pay the Premium in Full: Opt to pay your insurance premium in a lump sum annually, as this can potentially yield savings ranging from 5% to 15%.

Finally, it’s worthwhile to inform your insurance provider if you’ve installed fire or CO2 alarms and have taken measures to secure your home with anchor ties. These safety enhancements not only bolster your family’s protection but may also make you eligible for additional discounts on your policy.