Mobile Home Insurance in Alabama 2021
So, do you own a mobile home? If you do, you need to think about obtaining manufactured home insurance in Alabama. One main reason you need to buy homeowners insurance for mobile homes in Alabama is that most communities and mortgage lenders have made it a mandatory requirement. Without it, you can’t buy coverage. Mobile home insurance in Alabama is different from standard homeowners insurance coverage.
Mobile homes or manufactured homes have always had a huge market in Alabama. In that state, mobile homes make about 16% of its housing market, which is around two times the national average. Birmingham, Alabama, is ranked in the top 10 list of manufactured housing retail markets in the country.
In this article, we’ll explain the importance of buying mobile home insurance in Alabama, estimate mobile home insurance rates in the state, give tips on buying, and round it off with a FAQs section.
Do I Need Mobile Home Insurance in Alabama?
Yes, you need mobile home insurance in Alabama. Mobile and manufactured homes tend to sustain more damage than standard on-site constructed homes. Unlike your usual home, a mobile home is made from lightweight material.
Additionally, mobile homeowners are at increased risk of experiencing structural problems and theft. For the structural issues, you can blame the transport and installation method. Most companies offering mobile insurance provide customized quotes.
This allows mobile homeowners to select a coverage option that works for them and one that’s within their budget. If you live in Alabama and own a mobile home, trust us, you wouldn’t want to go without one. Alabama experiences lots of tornadoes.
The following statistics will tell you why you need manufactured home insurance in Alabama:
- Alabama witnessed a yearly average of 37 tornadoes between 2003 and 2021 in the first quarter of every year.
- The unusual increase in tornado activity that occurred previously skewed the average of 22 tornadoes between 2001 and 2010.
- In Southeast Alabama, around 553 people met with tragic circumstances in the series of tornadoes that occurred in recent years.
- Out of the 553 Alabamians who passed away, an estimated 112 took refuge in a mobile or manufactured home.
Do you want to buy mobile home insurance coverage? If you do, you need to know what is covered in standard mobile home insurance.
What Does Mobile Home Insurance Cover?
Mobile home insurance covers the following:
- Liability Insurance covers the cost of property damage or bodily injury in the event a person lodges a claim against you due to an incident that occurred on your property. The coverage protects you and the land your mobile home is parked on as well. It covers a part of the settlement costs, legal defense, and court fees.
The insurance coverage is important to your financial health because it only takes one person to file a serious claim against you for it to affect you financially. This can be anything from a dog bite claim or a slip and fall claim against you.
- Property Damage Insurance covers the cost of rebuilding or repairing your property after a burglary, tornado, fire, or a different covered event. Mobile homes and manufactured homes depreciate in value over time.
For this reason, you may want to consider buying replacement cost insurance coverage instead of the actual cash value insurance coverage. In the event your mobile home is a complete loss, your property damage insurance can pay the cost of purchasing a new mobile home instead of the depreciated cost of your previous mobile home.
- Contents Insurance covers the items you have in your homes, such as clothing, furniture, electronics, appliances, and other personal belongings. In most homes, you can find personal belongings valued up to $20,000.
However, the value of your property may be more. You should discuss with your local insurance agent to receive an accurate quote on the amount of contents insurance coverage you should obtain.
Most mobile home insurance providers don’t offer flood insurance. If you reside in a location in Alabama that’s prone to flooding, you should consider purchasing it separately or through the National Flood Insurance Program if your community participates in it. You should also find out if the insurance provider has Alabama wind insurance coverage for manufactured housing.
Mobile Home Insurance Rates in Alabama
Is Mobile Home Insurance Cheaper or More Expensive than Homeowners Insurance?
Alabama mobile home insurance is more expensive than standard homeowners insurance coverage. This is because the risk of living in a mobile home is higher. The premium you’ll have to pay on average for mobile home coverage is around $300 to $1,000 each year, depending on several different factors and circumstances.
What Factors Affect Mobile Home Insurance Rates?
The factors that can affect your mobile home insurance Alabama quote include:
- Your mobile home’s age and condition
- Your location, as in some areas, the risk of theft, flooding, wind damage, or fires are higher
- Your mobile insurance coverage limits
- Your deductible amount, which means you’ll be paying higher upfront costs if your deductible is high in the event of a loss, but your premiums are likely to be lower
- You can get discounts such as military service, bundling policies, or installing a security system on your mobile home
- Your past claims history
What is the Average Price of Mobile Home Insurance in Alabama?
On average, mobile home insurance in Alabama costs around $129 each month.
What Insurance Provider Has the Best Manufactured Home Insurance Rates in Alabama?
The best mobile insurance provider in Alabama is Foremost. Foremost Insurance claims to be the first insurance provider to offer mobile home insurance. The company provides mobile home insurance to around 37 million members of the AARP.
Some unique offerings include ranch or hobby farm liability insurance and replacement cost insurance coverage. The replacement cost insurance coverage may give you an additional 20% on your property damage settlement.
Unlike other companies, Foremost doesn’t deduct depreciation on the damaged property. You can replace the damaged items with new items based on their comparable quality and material without needing to settle for less than you had previously.
The second-best mobile insurance provider in Alabama is Assurant. The mobile home insurance provider has collaborated with Liberty Mutual, GEICO, and Progressive to provide manufactured insurance to policyholders. You can obtain a quote from their website, and if you like it, you can buy it online.
The company provides you with mobile insurance coverage for events that other insurance companies may not offer, such as flood and earthquake insurance. Although other mobile insurance companies provide these policies separately, Assurant includes them as part of the standard mobile home insurance coverage.
Tips on Finding the Best Mobile Home Insurance in Alabama
If you want to buy mobile home insurance, you need to find the best mobile home insurance in Alabama that works for you. We’ll provide you with tips on how to select and compare the different mobile home insurance companies in the state and then choose the best mobile home insurance in Alabama.
Tips to Buy Mobile Home Insurance
These tips will help you find cheap mobile home insurance in Alabama:
- Estimate the cost of replacing your mobile home.
- Create a list consisting of every valuable item in your home, along with their estimated cost.
- Contact a mobile home insurance broker in Alabama by phone for a quote or get a quote via their website.
- Examine the quotes carefully to determine the type of coverage options that come with mobile home insurance.
- Determine if you require extra coverage for high-value personal belongings or non-attached structures on your mobile home.
- Choose a deductible, which is the money you pay before an insurance company pays for the damage. If you go with a higher deductible, your policy will cost less.
- Use all available discounts such as automatic payments, installing a security system, or taking out more than one policy with the same mobile home insurance company.
- Document your personal belongings and properly by taking a video and/or capturing pictures. You need to note down the serial numbers and save copies of any receipt, putting both in the same place. In the event of property damage, you can use the information to help you settle your claim with the mobile home insurance faster.
How Much Mobile Home Insurance Do You Need?
It’s important to have mobile home insurance coverage that meets your needs. If you need more mobile home insurance, but you take out less, you’ll find yourself paying more money out of your pocket. You can determine how much mobile home insurance you need to obtain in Alabama by answering these questions:
- What is the replacement cost of your mobile home coverage?
- How much would the improvements you make to your mobile home coverage cost you?
- What is the value of electronics and furniture in your mobile home?
The Popular Mobile Home Insurance Companies in Alabama
Find out our recommendation for mobile home insurance in Alabama:
- Foremost Mobile Home Insurance Alabama
- Assurant Mobile Home Insurance Alabama
- Allstate Mobile Home Insurance Alabama
- American Modern (AMIG) Mobile Insurance Alabama
- Farmers Mobile Insurance Alabama
Pros & Cons
Does Mobile Home Insurance Cover Modular Homes?
No, mobile home insurance doesn’t cover modular homes. A standard homeowners insurance policy covers modular homes. For a manufactured or mobile home, you’ll need to obtain specific coverage.
Who Has the Best Mobile Home Insurance in Alabama?
Out of all the mobile home insurance companies in the state, Foremost offers the best mobile insurance.
Who Has the Cheapest Mobile Home Insurance in Alabama?
If you’re a member of the AARP, the cheapest mobile home insurance for you will be Foremost. If you aren’t an AARP member, go with Allstate due to the various discounts they provide or Assurant if you want your mobile insurance policy to include flood coverage.
What is the Average Mobile Home Insurance Cost in Baldwin County, Alabama?
You can expect to receive mobile home insurance rates in Baldwin County, AL, from anywhere around $839 to $1,139 each year or around $69 to $94 each month.
Who Can Help Me Find Mobile Home Insurance in Alabama?
Our review on mobile home insurance in Alabama can point you in the right direction, but this just one way to find home insurance. Another way is to select a few mobile insurance providers and read their customer reviews. You can also ask family and friends for advice on the subject if they have experience on the subject.