What Is A Modular Home?
A modular home is prefabricated housing constructed off-site in a factory and then transported to its final location, assembled on a foundation or basement. Modular homes are built in modules or sections, constructed according to the same building codes and standards as traditional stick-built homes.What Type Of Insurance Policy Do I Need For A Modular Home?
- You’ll generally need a homeowner’s insurance policy when insuring a modular home, just like a traditional stick-built home. Here are the types of insurance policies available for a modular home.
- HO-1 (basic form): This typically covers only specific named perils, such as fire, lightning, and theft. HO-1 policies are not widely available and may not provide enough coverage for a modular home.
- HO-2 (broad form): This policy provides broader coverage than an HO-1 policy and covers additional perils, such as wind, hail, and water damage from burst pipes. However, it only covers specific named perils and may not provide adequate coverage for a modular home.
- HO-3 (special form): This is the most common type of insurance policy and provides coverage for most perils, except those excluded from the policy. HO-3 policies typically cover the structure of your home, personal belongings, liability, and additional living expenses in the event of a covered loss. This type of policy is recommended for modular homes.
- HO-5 (comprehensive form): This is the most extensive type of homeowner’s insurance policy and covers all perils except those excluded in the policy. HO-5 policies provide broader coverage than HO-3 policies and may be a good option for homeowners with high-value homes or special features or upgrades in their modular homes.
