Mobile, Manufactured, or Site Built Home. What's the difference?

Different types of homes require different types of insurance. How the home is built will determine what type of insurance you can buy, how much it will cost, and what it will cover in the event of a loss.

A site built home is a house that has been built where it stands. The house is built on site from the foundation to the roof. This is the most common type of home people think of when they think of a house. A traditionally built home will usually appreciate in value over time.

The manufactured home is built differently from a traditionally built home. A manufactured home or mobile home as it used to be known is built in a factory. The house is built with a permanent steel chassis which is why they are commonly known as mobile homes because they are more easily moved from place to place. A mobile home also usually has a title like a vehicle rather than a deed like a home. The home has to conform with federal HUD guidelines but usually doesn't have to conform to local building codes. Manufactured homes tend to decrease in value over time.

A modular home also known as a prefabricated home or prefab is a hybrid of a site built home and a manufactured home. It is built in a factory like a mobile home but it does not have a permant chassis. The home is brought to the building site on a flatbed truck. The home also has to meet all federal HUD, local, and state guidelines for a traditional built home. Modular homes when built well increase in value similar to a traditional built home.

When it comes to insurance, many companies do not write manufactured homes. They are built on a chassis which means they are mobile, they do not have to conform to local building codes, and they decrease in value over time. There are a few companies that specialize in manufactored homes and can be very comparable in rate to a traditionally built home. You should look for a company that provides coverage for fire, wind, hail, vandalism, water, and liability. Also find out how much the insurance company will pay if you lose your home completely.