CoverTree Secures $13 Million in Series A Funding to Revolutionize Manufactured Home Insurance Read More

Manufactured vs. Mobile vs. Modular Homes – What’s the Difference?


Are you looking to purchase a new home and wondering what a modular home cost compared to a mobile home cost? You may have heard about prefabricated or factory-built housing during your search for a new home. This category of housing includes modular, mobile, and manufactured homes. This article will focus on the difference between those three and help you decide which is best for you.

To the untrained observer, these types of homes look pretty similar to traditional homes. The major difference is that rather than being constructed “on-site,” these houses are mostly built in a facility. Then they are delivered, mostly assembled, to the property. 

The untrained observer will also struggle to find the differences between these kinds of homes. The main distinguishing feature between modular, manufactured, and mobile homes are the kinds of building codes they have. 

Mobile Homes

A lot of people confuse the terms mobile home and manufactured homes. This is understandable since the only major difference is in their age. Mobile homes first emerged as a form of temporary housing at the start of the 20th century. Early mobile homes were closer to travel trailers today.

However, people soon started to buy mobile homes for affordability rather than ease of transport. Mobile homes began to turn into more stationary houses. However, early mobile home construction was something of a wild west, without much in the way of codes or regulations. 

 The 1976 HUD Code set new standards for mobile homes relating to their building and safety requirements. Any mobile home built after that date would be referred to, per the code, as a “manufactured” home. 

So if you’re looking for “mobile home insurance,” you’re probably really looking for “manufactured home insurance” or “modular home insurance!

Manufactured Homes

The manufactured homes that were built post-1976 were very different from the mobile homes that had come before. They were roomier, safer, nicer looking, and more energy-efficient. 

Today’s manufactured homes are built in advanced climate-controlled factories. They are constructed to exacting standards based on the market they are going to be sold in. In fact, many manufactured homes stand up to disaster better than on-site houses! 

Modern Manufactured Homes come with the option of having a permanent or non-permanent foundation, based on how likely you feel it is that you may need to move the home. A permanent foundation gives you the option of treating the home like an on-site, which means that it appreciates along with the local real estate market. 

What is a Modular Home?

Modular homes are built in much the same way as mobile and manufactured homes. The main difference comes in the codes. Manufactured homes are built according to a national HUD code. Modular homes, meanwhile, are built to state and local codes. Generally, these local codes will be close to the codes used for site-built homes. While the pieces of a modular home are made like a manufactured home, they are put together in a manner that suits local codes. 

What Makes Factory-Built Homes so Great?

Factory-built homes are great because of their value. The factory construction method allows builders to use economies of scale, assembly-line production methods, and climate-controlled construction to create a great home at a better price than its site-built equivalent. Whether you buy a manufactured home or a modular home, rest assured that you will be getting a quality home that will last for years to come. If you’re looking for modular home insurance or manufactured home insurance, make sure to contact us! CoverTree are experts in manufactured home insurance, and we’re ready to help you get the coverage you need. 

More Articles

May 23, 2024

New Technology in Manufactured Homes

May 9, 2024

How to Make Your Manufactured Home More Energy Efficient

May 8, 2024

Software Architectural Choices & Trade-offs at CoverTree

CoverTree Inc. (CoverTree) is a Program Administrator for CoverTree’s Manufactured Home Program, underwritten by Markel American Insurance Company (Markel), located at 4521 Highwoods Parkway, Glen Allen, VA 23060. CoverTree is acting as the agent of Markel in selling insurance policies. CoverTree receives compensation based on the premiums for the insurance policies sold. Further information is available upon request. Subject to underwriting guidelines, review, and approval. Use of Covertree is subject to our Terms of Use, Privacy Policy, and Licenses.

CoverTree operates in the state of California (CA) as MHTree Insurance Services with CA license# 6009070.

Products and discounts not available to all persons in all states. All decisions regarding any insurance products, including approval for coverage, premium, commissions and fees, will be made solely by the insurer underwriting the insurance under the insurer’s then-current criteria. All insurance products are governed by the terms, conditions, limitations and exclusions set forth in the applicable insurance policy. Please see a copy of your policy for the full terms, conditions and exclusions. Any information on the Site does not in any way alter, supplement, or amend the terms, conditions, limitations, or exclusions of the applicable insurance policy and is intended only as a brief summary of such insurance products. Policy obligations are the sole responsibility of the issuing insurance carrier.

Rating as of March 1, 2022. AM Best ratings are under continuous review and subject to change. Please refer to Markel’s website for the most current information. The rating represents the overall financial status of Markel American Insurance Company, and is not a recommendation of the specific policy provisions, rates or practices of the issuing insurance company.

Copyright © 2022 CoverTree Inc. All rights reserved