Whether you have a manufactured home or a traditional property, the cost of a home insurance policy is directly associated with the cost of your home.
It is also associated with the degree of risk an insurer perceives to be related to your home and whether you add optional coverage. Understanding this helps you to find the best coverage rates for your manufactured home’s insurance policy.
Typically, the best way to lower the cost of your insurance is to reduce the perceived risk associated with your manufactured home. By making security and maintenance improvements, you significantly lower the policy’s price. Selecting higher deductibles and only opting for standard coverage also allows you to save on your manufactured home insurance.
Learn About Maintenance and Security Improvements
If you own a manufactured home with a history of multiple insurance claims, you are considered a high risk by insurers. Whether or not the claims were made by yourself or the home’s previous owner makes no difference to the insurance company’s risk assessment.
Reduce the amount of claims you might need to make by making upgrades to your home. By making proactive improvements to protect your home against such incidents as storms, you also lower your premiums.
The improvements you make do not have to be extravagant. Simple maintenance and repairs are sometimes all that is necessary to lower your claims and premium rates. You could replace windows in poor condition or worn weather strips, or you could repair gutters and blocked drains.
If you reduce the likelihood of water damage to your manufactured home, your insurer’s concerns about risk are reduced. In addition, by using non-flammable building materials for any work you do to your home, you make your manufactured home more resistant to damage. This makes it less expensive to insure your home.
Improving the security of your home allows you to save on insurance costs too. Installing a security system or a burglar alarm have a huge impact on the amount of your premiums.
If you decide to install security features, contact your insurer before you proceed to find out whether there are minimum requirements a system must meet in order to be eligible for a reduction in premiums. In addition, inquire about what documentation you need to provide your insurance company with to prove you have added the security system.
If you cannot afford a full security system, you could still make smaller security improvements to lower the cost of your premiums. Simple things like installing deadbolts on your doors make a difference to your perceived risk level. Ask your insurance company for suggestions on which type of security improvements you should make.
One of the best inexpensive ways of improving the safety of your manufactured home is to install smoke and carbon monoxide alarms.
By installing several alarms in appropriate places, your annual homeowners’ insurance premiums are reduced by as much as 10 percent. You can also lower your rates by installing sprinkler systems to suppress fires or placing fire extinguishers in your home.
Improvements to your neighborhood also impacts your insurance cost. If relevant improvements occur in your locality, make sure you inform your insurance company of the updates.
Your insurance could be reduced in price if your neighborhood has a new Neighborhood Watch or police station close by.
Other neighborhood improvements that could save you money on your insurance include:
- Improved walkways.
- Improved lighting.
- Installation of security cameras.
- Installation of fire hydrants.
If you have a pool or trampoline on your property, your premiums are likely to rise. This is because a high number of accidents and deaths are associated with swimming pools and trampolines in the U.S. every year.
If you have either on your property, your insurance premium can rise by as much as 10 percent. If you are thinking about getting a swimming pool, you may want to reconsider this. If you already have a pool, it could be worth removing it.
With regards to trampolines, it is best to use ones that are packed away after use. By removing pools and permanent trampolines from your property, you save significantly on your home insurance expenses.
How to Play with the Numbers
Raising the deductible on your home insurance policy is one of the easiest and quickest ways of lowering your premiums. The more your deductibles go up, the more your premiums go down. In practice, this mean your insurer still offers the same coverage but you have to personally pay more for any damages before the insurance coverage starts to pay out.
This obviously means you have to set aside a good amount of money to be used in an emergency situation. If you are in a position to do this, raising your policy’s deductible saves you a large amount of money in the long term.
Another way of reducing the cost of your home insurance is to pay off your mortgage. Obviously, you need to be in a good financial position to do this. If you fully own your manufactured home, insurers assume you are there for the long term.
In turn, this means you are likely to be more responsible in maintaining your home. This results in most insurance companies significantly lowering premiums.
One of the best ways to save on your home insurance costs is to shop around. By doing so, you may find reduced-rate or discounted policies. Even if you do not find special offers, each insurance company charges different prices. It is therefore advisable to look at several insurers before selecting the one you wish to go with.
You are in a better position to compare different insurance options from multiple companies if you have a good understanding of your personal requirements and the state of your manufactured home.
Another way of getting lower premiums is to simply be a responsible homeowner. The longer you go without claiming, the more confidence your insurer has in you. This results in a lower perceived risk, which almost always lead to a reduction of costs.
Finally, purchasing all of your insurance through one company significantly reduces your costs. In fact, premiums for homeowners who have comprehensive insurance costs as much as one tenth less than policies taken out with multiple insurance companies.
As long as you spend time looking at various companies and their different policies before selecting the one to go with, you can find numerous ways to save on your insurance costs.