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.
10 News is working for you to reveal ways to get a lower premium.
Lisa Gill writes for Consumer Reports and she lives in a tiny home.
“My favorite thing about my tiny home is my bathtub,” Gill said.
She also loves not having a mortgage.
“What I pay for insurance every year is steep, but I’ve taken a few steps to lower my bill.”
Tiny and manufactured homes are becoming a popular alternative. But it could be a costly trend. Home insurance prices can sometimes be double compared to a traditional home.
Why does it cost more to insure less 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 There also might be outdated discrimination from the days when mobile home parks were mostly located in poor and crime-ridden ZIP codes,” Gill said.
There are only a handful of companies that insure manufactured homes. Less competition can also mean higher rates.
“When it’s time to shop around for a policy, consider working with a local independent agent, which can be more efficient than looking for yourself online.”
Here are four other ways to save:
- Make sure you have the highest possible credit score. Your credit history can determine premium rates.
- Ask about “bundling,” meaning there are savings if you buy your home and car insurance from the same company.
- Consider a higher deductible. Increasing 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.