The best ways to save on home insurance for tiny and traditional houses
There's no doubt manufactured and tiny homes are significantly cheaper than traditional homes, but there’s often a surprise after the purchase. Insurance can cost twice as much.
Twenty million people live in manufactured housing in the U.S. That’s about 6.5 percent of the total population, but in North Carolina that percentage is much higher, with 14 percent of residents living in manufactured homes, according to a report out of UNC Greensboro.
Why does it cost more to insure a tiny home? The insurance industry points to greater susceptibility to wind, hail damage, tornadoes, fire, theft, and vandalism compared with a traditional home.
But there could be more to it: Some consumer groups say insurance companies may be more likely to take advantage of “financially vulnerable” people— charging them more money for fewer benefits. There also might be outdated discrimination from the days when mobile home parks were mostly located in poor and crime-ridden ZIP codes.
There are only a handful of companies that insure manufactured homes. Less competition can also mean higher rates.
Consumer Reports breaks down the cost differences and reveals ways to get a lower premium.
"When it’s time to shop around for a policy, consider working with a local independent agent, doing so can be a lot more efficient than looking for yourself online," said Consumer Reports writer Lisa Gill.
Here are some other ways to save on insurance:
Make sure you have the highest possible credit score. Your credit history can determine premium rates.
Ask about “bundling,” meaning are there savings if you buy your home and car insurance from the same company.
Consider a higher deductible. It'll increase the amount you’ll first pay out of pocket before your insurance — from $500 or even $1,500 could save several hundred dollars off your premium.
Finally, pay the premium in full all at once. Doing so might save you between 5 and 15 percent.
Mention to your broker if you’ve installed fire or CO2 alarms, along with securing the home with anchor ties. These measures better protect your family and might save you more money with your policy.
