Exterior of modular home.

What Is a Modular Home?

From affordability to customization, there are many advantages to choosing a modular home over on-site construction. Take a look at what a modular home is, the benefits of building one and your options for insuring your modular home.

By: HomeAdvisor (Opens in a new tab)

As the largest generation to date ages into the home-buying market, the American home construction industry leans to the modular home design to keep up with the housing demand. Modular homes are increasing in popularity for those looking to build, because not only are they quick to build — they’re affordable, too.

What Is a Modular Home?

Unlike a home that’s built on-site, a modular home is built off-site, primarily in a factory setting. This means, a modular home can be built much quicker, since they don’t see the typical delays an on-site build might experience due to things like weather.

Frames and other components, called modules, are built in the factory to be transportable and are delivered by truck to your prepared build site. The frames are assembled and finished by your builder on-site. Your builder often oversees installation of the foundation and utility lines prior to module delivery.

How Do I Insure a Modular Home?

Insurance is just as necessary for modular homes as it is for a traditional home build. In fact, many lenders require you to insure your home before they’ll close on your loan. Talk to your American Family agent (Opens in a new tab) about coverage options for these types of homes.

Why Should You Choose a Modular Home?

Understanding the benefits of a modular home makes it all the more appealing. Take a look at the many advantages to choosing a modular home over on-site construction:

Faster construction. Modular homes can take as little as six months to complete — sometimes even less time than that! On average, they’re finished 15 percent faster than a home built entirely on-site.

Customization. You can choose from hundreds of design options when designing your modular home. Of course, your state’s building codes must be considered. You can choose every detail of your modular home, down to the color of paint on the walls, the style of the windows and even your bath fixtures, just as you would with a traditionally built home. Keep in mind that the more blueprint customizations you request, the longer it will take before it’s ready for you to move in.

Affordability. Modular homes can cost around 10 to 15 percent less than site-built homes. Some of these savings are the result of fewer wasted materials.

High-quality. Factory-built homes are not designed or constructed to be inferior to on-site builds. In fact, it’s just the opposite. Many of the materials and tools used by modular home construction companies are higher quality than those used for on-site constructions.

Sturdier material. Modular designs also use 20 to 30 percent more material than a stick frame — without being more expensive. For instance, modular home drywall is installed with an adhesive glue in addition to being screwed into the frames. This creates a sturdier, well-insulated and more energy-efficient home.

How Do Modular, Manufactured & Mobile Homes Differ?

While each are constructed in a controlled environment, then moved to site, it’s important to know that modular, manufactured and mobile homes are not the same. Here’s what make them different:

Manufactured homes. A manufactured home tends to use less efficient materials and poorer construction than modular homes. They’re valued substantially less than modular homes, and some lenders won’t cover a loan for a manufactured home.

Mobile homes. A mobile home is usually set on blocks and underpinned, whereas modular homes can be placed on a basement or permanent foundation. The same is true of manufactured designs.

Modular homes. Modular homes are made with high-quality materials and processes. Banks will usually lend against a modular home. They consider these the same as a stick frame, on-site constructed house in terms of eligibility for loans.

There are many building options available today — is a modular home a good fit for you? Once you’ve determined the best housing option for you, connect with your American Family agent to get customized homeowners insurance coverage built just for you.

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