Modular home insurance policies are the same as traditional home insurance policies, and you have a few different options.

Rae Hartley Beck Edited by Kelly Larsen Updated September 23, 2022

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A modular home can be an affordable way to get the custom home of your dreams in a location where on-site building is difficult or cost-prohibitive. But just like with a traditional home, once you’ve got your dream house, it’s important to protect it with homeowners insurance.

Here’s what you need to know about modular home insurance:

A modular home is a type of home that’s built in a factory and then assembled on the permanent site. Modular homes are typically lumped together with mobile homes and manufactured homes, but they’re quite different.

Modular homes are permanently affixed to the foundation they’re placed on and are typically much larger. These homes are made of several pieces that are transported separately and come together on site.

Meanwhile, a mobile or manufactured home is built according to standards set by the U.S. Department of Housing and Urban Development (HUD) and usually isn’t permanently affixed to the site it’s placed on.

Modular homes are a popular option for people looking for custom layouts or architectural styles that can be difficult or expensive to build on site. They’re becoming an increasingly popular option for sustainably built and self-sufficient homes, as they can be built while producing less waste in a factory than traditional site-built homes do.

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Modular home insurance policies are the same as those for traditionally built homes. This means that you have many types of homeowners insurance to choose from, depending on the coverage level you need.

You might consider getting one of the following policies:

Modular home insurance has the same coverage as home insurance for traditionally built homes. What your specific home insurance policy covers depends on the coverage limits you choose and whether you add any additional coverage through riders.

In general, your modular home insurance will cover most types of damage or loss due to accidents, theft, and disasters, with exclusions explicitly listed in the policy.

Your home insurance policy will be separated into six main types of coverage with different coverage limits. The six coverages are:

Good Read: Is Homeowners Insurance Required?

Modular home insurance has the same exclusions as a standard homeowners insurance policy. The specific exclusions for your policy will depend on the options you select with your insurance carrier.

However, standard home insurance policies generally exclude damage due to floods or earthquakes. You’ll have to purchase a separate policy or add specific coverage through an insurance rider to protect your home against these disasters.

Other common exclusions in modular home insurance policies include damage from sewer backups, damage resulting from lack of maintenance, and damage caused by an act of war.

The average cost of modular home insurance is the same as the average cost of standard home insurance, which is $1,278 per year, according to the National Association of Insurance Commissioners. The amount you’ll pay will depend on your specific situation.

Modular home insurance rates vary based on several factors, including:

Check Out: How Much Does Homeowners Insurance Cost?

If your modular home has specialty products or systems that would be cost-prohibitive to repair or replace, consider adding coverage for them through an insurance rider or a home warranty.

The manufacturer of your modular home may have coverage options for you or maintenance plans you can add on when you purchase the home. They built it and will have the most knowledge of how to fix it when something goes wrong. If your modular home includes something like a water reclamation system or whole house battery, a warranty through the manufacturer is a good idea.

If you live in an area prone to floods or earthquakes, getting a separate policy for floods or earthquakes is essential.

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Disclaimer: All insurance-related services are offered through Young Alfred.

Rae Hartley Beck is a Credible authority on personal finance. Her work has been featured in Bankrate, MoneyWise, and Investopedia.

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