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As insurers pull back across the country, a growing crisis is unfolding for owners of manufactured homes.
Long considered a cornerstone of naturally occurring affordable housing (NOAH), manufactured homes house roughly one in every 15 people in the U.S., according to the Manufactured Housing Institute. Many of these residents are fixed-income seniors who depend on modest home insurance policies to safeguard their biggest asset: their home.
But as premiums surge and insurers exit the market, their safety net is slipping out of reach. What was once an affordable option is becoming financially precarious—not because of the mortgage, but because of the insurance.
One small city in Massachusetts is sounding the alarm. And what’s happening in Taunton may be just the beginning of a broader national affordability blind spot.
Why manufactured homes are increasingly uninsurable
Manufactured homes are facing a tightening insurance market for many of the same reasons that traditional homes are—with a catch.
These homes are built off-site and transported to a permanent location, where they’re typically secured to a foundation system like pier and beam, using steel bracing attached to I-beams underneath the structure. While commonly lumped together with mobile homes, the term “manufactured home” technically applies only to units built after 1976, when federal HUD standards were introduced to improve safety, durability, and construction quality.
Still, insurers continue to treat many of these homes as higher-risk properties. Common justifications include a perceived greater susceptibility to vandalism and theft, as well as vulnerability to the same climate-driven threats affecting all homes, like wind, hail, fire, and severe storms.
What makes this especially challenging for owners is that manufactured homes have always been expensive to insure. Despite being, on average, half the size of a traditional single-family home, premiums are often comparable or even higher.
The average annual insurance premium for a manufactured home ranges from $700 to $1,500, according to recent data. But in states with higher exposure to natural disasters, like Florida and California, that cost can climb to $1,800 or more. In Texas, it’s not uncommon to pay $1,500 to $2,700 per year—figures that rival those for much larger, site-built homes.
And with fewer insurers willing to write new policies, prices are poised to keep rising, leaving many low- and moderate-income homeowners with nowhere to turn.
How this impacts real people
“This is threatening our housing stability. It’s not just a number issue. It’s a human issue,” Donna Dias, a member of the Taunton Manufactured Homes Communities Group, told the Taunton Daily Gazette.
Dias has watched her annual homeowners insurance premium more than double—from $736 to $1,500 in just three years. She hasn’t filed any claims or made changes to her coverage that might explain the increase. And she’s not alone.
At a recent forum hosted by the Taunton Manufactured Homes Communities Group (TMHC), residents from across the city gathered to share their experiences with rising premiums and shrinking coverage options. Many of them are older adults living on fixed incomes now forced to stretch already-tight budgets just to insure their homes.
“Most of us are struggling to survive and stay in our homes,” Jeani Warish, a resident of Rocky Knoll Estates and fellow TMHC member.
Stories like these underscore the real-world consequences of what might otherwise seem like dry policy shifts. These aren’t second homes or investment properties. For many residents, their manufactured home is their only asset, and a jump in insurance costs can make the difference between stability and crisis.
Disappearing options and a regulatory gap
One of the most troubling trends in Taunton is just how few options residents have for coverage. At the recent City Hall forum, roughly half of those in attendance were insured through a single provider.
That concentration reflects a broader issue: Out of approximately 70 insurance carriers operating in Massachusetts, only 14 offer homeowners insurance for manufactured homes, according to reporting by the Taunton Daily Gazette.
With so little competition, there’s little pressure on insurers to keep rates affordable—especially in a market where risk exposure from climate change is already putting pressure on insurers.
For homeowners shut out of the private market, the state’s FAIR Plan (Fair Access to Insurance Requirements) offers a last-resort option. This policy is designed to provide basic property coverage for those who can’t find or afford insurance elsewhere and is offered by the Massachusetts Property Insurance Underwriting Association.
But while FAIR Plan rates may be more attainable, the coverage is minimal. Policies often lack the comprehensive protections found in the voluntary market, leaving homeowners exposed if they ever need to file a claim. That makes underinsurance a growing risk, particularly for residents already on tight budgets.
What comes next
The crisis unfolding in Taunton is a warning shot for communities across the country, many of whom are also facing a crisis of investors purchasing manufactured-home parks, only to drive up rent. Rising rents and growing insurance costs are increasingly threatening one of the most abundant sources of naturally occurring affordable housing, right when the country needs it most.
For the residents of Taunton—and communities like it nationwide—what’s at stake isn’t just policy. It’s the ability to stay in their homes.