Why is proof of insurance important when finalizing a manufactured home purchase?

Proof of insurance is crucial when finalizing a manufactured home purchase because it safeguards the buyer's investment against potential risks such as damage or loss. Once the purchase is made, the manufactured home typically becomes one of the most significant assets for the buyer. Insurance provides financial protection, ensuring that, in the event of unforeseen circumstances such as fire, theft, or natural disasters, the buyer is not left with a total loss.

Having insurance demonstrates to both the buyer and the seller that the home is protected and that the buyer is prepared for potential liabilities. This sense of security is important for lenders and dealers involved in the transaction as well, as it assures them that the buyer has a responsible plan in place to manage the home and protect the investment over time. This step ultimately fosters confidence throughout the transaction process and contributes to a smoother closing experience.