Just Starting Out? A Newbies Guide to Mobile Home Insurance

With the current credit crisis and the truly depressed economic climate right now, young people just starting out might think owning their own home is right up there on the impossible scale a bit below "winning the lottery" and maybe above "having dinner with Ryan Gosling or Hilary Duff."

But there is a way to beat down the housing hurdle. You can buy a mobile or manufactured home in many parts of the U.S. today for under $30,000, sometimes as little as half that for used and repossessed manufactured homes. Not exactly chump change, but certainly far more affordable than any of the brick-and-mortar site-built homes out there. Those prices don't include land, but even a whole package can be affordable for young people just starting out.

If all this conjures up an image of "trailer trash," you haven't been paying attention to what's out there today. Nice bedrooms, classy baths, modern open-plan kitchens, maybe a terrace/porch, thermopane windows, central air, cathedral ceilings, walk-in closets—today's manufactured homes have pretty much the same features you'd find in asite-built home, but for a lot less.

If you're thinking about a mobile or manufactured home, you're not alone. The Manufactured Housing Institute claims that mobile homes make up roughly 25% of all new residential structures in the United States and more than 10% of total housing. And if you think they're just for retired folks in rocking chairs...wrong again. The same study shows that 64% of mobile home owners are employed full-time. Move over, gramps; the kids are moving in.

When you start looking for yours, you might be confused. Some people call them mobile homes, others say manufactured homes. Really, they mean the same thing to most people, but the government makes a distinction. The Department of Housing and Urban Development (HUD) defines a "mobile home" as one built before June 15, 1976. Those built after that date are "manufactured homes." They've been built to higher standards and HUD certifies them as well built and safe.

Whichever you buy, you're going to have to insure it, just like you would a site-built home. If a tree falls through the roof, or a kitchen fire breaks out, you don't want to be stuck with no home and a huge repair bill. Mobile home insurance is now in your future.

When you start shopping for manufactured home insurance, you'll want most of the same features of a standard homeowners insurance policy. Here are the basics:

• Home and Structure Protection. If your mobile home is damaged or destroyed by fire, wind, hail, theft, vandalism, falling objects, you name it, this is the part that pays to repair or replace it. Usually, it also covers other things on the property like fences and porches, a garage, or a storage shed. Some "perils" aren't covered, like flooding. If you live in a flood-prone area, you'll want to get flood insurance from the government's FEMA program.
• Personal Liability Coverage. When your stupid brother-in-law throws back a few too many and falls off your porch, or the neighbor's bratty kid drives his trike into your side wall and breaks his leg, you want your back covered. Liability insurance does just that. It will cover their medical bills, lost wages, even pain and suffering, up to the limits of your policy.
• Personal Property Coverage. You've got stuff. It cost you money. It'll cost money to replace it if it's damaged or if some sleaze comes in and rips you off. If you go around your house adding up the value of all your clothes, your furniture, books, computer, electronics, gadgets and, well, stuff, it really adds up. This part of your mobile home insurance will cover those losses, again, up to the policy limits.

There are a lot of insurance companies that specialize in mobile home insurance, but you can also get quotes from standard insurance companies. The amount of manufactured home insurance coverage you choose depends on your needs and your budget.

But don't leave your back unguarded. You need this protection. Get online and shop around. Compare the rates and policies from several different companies to see which one gives the best combination of rates and coverage for you and your mobile home.

An affordable home is not an impossible dream. Neither is cheap mobile home insurance.