Manufactured homes have become a popular alternative to traditional stick-built homes, offering affordability, flexibility, and a streamlined construction process. However, one of the key factors affecting manufactured home insurance is mobility. While one of the defining features of a manufactured home is that it can be transported, insurance companies are often wary of homes that have been moved multiple times. This hesitancy can lead to higher premiums or, in some cases, a refusal to insure the home altogether.

In this blog post, we will explore the reasons why insurance companies are hesitant to insure manufactured homes that have been moved multiple times and offer insights into how buyers and owners can better navigate the complexities of insuring their homes.

1. Risk of Structural Damage During Transportation

One of the primary reasons why insurance companies are reluctant to insure manufactured homes that have been relocated more than once is the risk of structural damage incurred during transportation. Although these homes are built with the ability to be moved, the process is not without risks.

Why It’s Challenging:

• Wear and Tear: Each time a manufactured home is moved, it is subject to stress and strain, which can result in damage to the home's structural integrity. This damage may not always be immediately visible but can affect the long-term stability of the home.
• Weak Points: The transportation process can create weak points in the home's structure, especially around areas where components are joined, such as the roof, windows, and doorframes. Damage to these areas can lead to leaks, compromised insulation, and other costly repairs down the line.
• Settlement Issues: After a home has been moved, it needs time to settle into its new foundation or location. This settling process can cause minor shifts or uneven settling, which may result in foundational issues that weaken the overall structure of the home.

Insurance companies are hesitant to insure homes with a higher likelihood of structural problems, as these homes pose a greater financial risk. Homes that have been moved multiple times are seen as more vulnerable to costly claims related to structural issues.

Solution:

• Certified Inspections: To reduce insurer hesitation, homeowners can have their home professionally inspected after every move. A certified inspection report demonstrating that the home is free from structural damage and meets all safety standards can help mitigate the insurer’s concerns.

2. Increased Likelihood of Damage to Essential Systems

When a manufactured home is moved, not only does the structure undergo stress, but essential systems within the home—such as plumbing, electrical wiring, and HVAC systems—are also subject to potential damage. These systems are crucial to the functionality of the home, and any damage could lead to costly repairs.

Why It’s Challenging:

• Disconnection and Reconnection: Every time a manufactured home is moved, its plumbing, electrical, and HVAC systems must be disconnected and then reconnected at the new location. This process can increase the risk of improper installation, leaks, or short circuits, which can lead to future malfunctions.
• Hidden Damage: Just like structural damage, issues with essential systems may not be immediately visible after a move. A loose electrical wire or a small plumbing leak might go unnoticed for months before causing significant damage or even fire hazards, which increases the insurer’s risk.

Because insurance companies are responsible for covering expensive repair or replacement costs if these systems fail, they are more cautious when insuring homes that have been relocated multiple times.

Solution:

• Professional Reinstallation: Homeowners should always hire licensed professionals to handle the disconnection and reconnection of essential systems during a move. Documentation from these professionals can be presented to insurance companies as evidence that the systems were reinstalled correctly, potentially easing their concerns.

3. Higher Risk of Transportation Accidents

Another major concern for insurance companies is the risk of accidents during transportation. Even with skilled professionals handling the move, transporting a manufactured home involves moving a large structure over potentially long distances. The home could be exposed to a variety of risks, from collisions to road hazards.

Why It’s Challenging:

• Road Hazards: The sheer size of a manufactured home makes it difficult to transport, and it is more susceptible to damage from road debris, low-hanging branches, or even collisions with other vehicles. Any damage sustained during transit can result in costly repairs or the need for major replacements.
• Weather Vulnerability: Weather conditions can further complicate the transportation of a manufactured home. Rain, wind, or snow can all increase the likelihood of accidents during the move, potentially damaging the home’s exterior or interior. Storms, in particular, can cause severe damage to a home in transit, raising the risk for insurance companies.

Insurance providers are wary of insuring homes that have faced these kinds of risks multiple times. The more times a home is transported, the higher the chance that it will sustain some form of damage during transit, and the greater the likelihood that the insurer will have to pay out a claim.

Solution:

• Specialized Moving Services: Homeowners should only use companies that specialize in manufactured home transportation to reduce the risk of accidents. These professionals have the expertise to ensure the safe transit of the home. Additionally, ensuring that the move is adequately insured with transit insurance can help demonstrate that any damages sustained during transport are covered by the moving company, not the homeowner’s insurance.

4. Deterioration of Materials Over Time

Over time, the materials used in the construction of manufactured homes can begin to degrade, especially if the home has been moved frequently. Repeated relocations can exacerbate this natural wear and tear, resulting in a greater chance that the home will need repairs or replacements for major components.

Why It’s Challenging:

• Material Fatigue: Just as a car or any other large item wears down over time and with repeated use, so do the materials in a manufactured home. Frequent moves cause stress on materials like wood, metal, and insulation, reducing their durability. For instance, doors and windows may become less airtight, or roof panels may loosen, allowing for water damage.
• Exposure to Elements: During transportation, manufactured homes are exposed to the elements. Repeated exposure to harsh weather, especially during multiple moves, can degrade exterior materials like siding or roofing. Over time, this increases the likelihood that insurance claims will be made for damages.

Solution:

• Upgrades and Maintenance: Homeowners should invest in high-quality materials and regular maintenance to extend the lifespan of their manufactured home. Insurance companies are more likely to cover homes that have been well maintained and updated with durable materials. Keeping a record of all repairs and upgrades, especially after a move, can also demonstrate the home’s value and condition to insurers.

5. Uncertainty Around Proper Installation After Multiple Moves

Each time a manufactured home is relocated, there’s a risk that it may not be properly reinstalled at its new site. Improper installation can cause a host of problems, including foundational instability and improper leveling, which can affect everything from the structural integrity of the home to its plumbing and electrical systems.

Why It’s Challenging:

• Improper Foundation: If the home is not properly placed on a foundation or leveled at the new site, it can lead to problems such as shifting, cracking, and even safety hazards. Over time, this can result in more frequent and costly repairs, making it a higher risk for insurers.
• Unknown Installation Standards: Insurance companies prefer to insure homes that have been professionally installed to meet safety and building codes. When a home has been moved multiple times, there may be uncertainty about whether the installation at each new site was done correctly, increasing the risk for future issues.

Solution:

• Professional Installation: Always ensure that the manufactured home is installed by licensed professionals, and retain documentation of every installation. A home that meets HUD standards and local building codes is more likely to receive favorable insurance coverage.

While manufactured homes are designed for mobility, moving them multiple times increases the risk of damage, both visible and hidden. Insurance companies are hesitant to insure these homes because each move compounds the likelihood of structural, system, and material deterioration. However, homeowners can mitigate these concerns by taking proactive steps, such as hiring licensed professionals for every aspect of the move, obtaining certified inspections, and performing regular maintenance.

By understanding the risks and taking preventive measures, homeowners can improve their chances of securing insurance for a manufactured home, even if it has been moved multiple times.