Understanding Manufactured and Mobile Home Insurance Costs

In Baton Rouge, Louisiana, Consumer Reports delves into the world of insurance for manufactured and mobile homes, shedding light on why these seemingly affordable housing options can come with unexpectedly high insurance premiums. Here’s a breakdown of the factors contributing to the increased cost and some strategies to secure lower premiums.

So, why does insuring a smaller home sometimes come at a higher price tag? Insurance providers cite the heightened susceptibility of these homes to various risks, including wind, hail damage, tornadoes, fire, theft, and vandalism, when compared to traditional houses.

However, there may be more to this equation. Certain consumer advocacy groups suggest that insurance companies might exploit those considered “financially vulnerable,” charging them more for fewer coverage benefits. Additionally, outdated discriminatory practices from the era when mobile home parks were predominantly situated in economically disadvantaged and high-crime ZIP codes may still play a role.

It’s worth noting that there is limited competition among insurers for manufactured homes, which can contribute to elevated rates. When searching for insurance, consider enlisting the assistance of a local independent agent, as they can streamline the process more effectively than attempting to navigate it on your own online.

Here are four additional strategies to help you save on your manufactured or mobile home insurance:

1. Boost Your Credit Score: Maintaining an excellent credit history can have a significant impact on your premium rates.
2. Explore Bundling Options: Inquire about potential savings when you combine your home and car insurance policies with the same company.
3. Adjust Your Deductible: Consider opting for a higher deductible amount, which means you’ll cover more of the initial costs out of pocket before your insurance kicks in. This could result in substantial savings on your premium.
4. Pay the Premium in Full: Opting to pay your insurance premium in a single lump sum could lead to savings ranging from 5% to 15%.

Additionally, inform your insurance broker if you’ve installed fire or CO2 alarms and have secured your home with anchor ties. These safety measures not only enhance the protection of your family but may also qualify you for further discounts on your policy.