Mobile homes are designed to be transported from one place to another. They’re usually built inside a factory and are towed to the homeowner’s plot of land. Unlike a traditional house, mobile homes don’t require any on-site construction work.
Once a mobile home is built, it’s just as susceptible to damage and destruction as regular homes. Because of that, having mobile home insurance is important. With mobile home insurance, your home and personal belongings are protected from unforeseen events, like fire and weather-related damage. Mobile home insurance also protects you from common liabilities as a homeowner.
Mobile vs Modular Home Insurance
Mobile homes and modular homes are two different types of dwellings. Mobile homes are usually delivered to the property pre-built and are anchored to the ground with a metal device. Modular homes are typically delivered to the property in pieces and look more like a regular house.
When it comes to insurance, mobile homes and modular homes are covered by two different policies. Modular homes are covered by standard homeowners insurance, whereas mobile homes are covered by mobile home insurance. Mobile homes have their own insurance policy because they come with additional risks that regular or modular homes don’t have.
What Mobile Home Insurance Covers
Like any form of dwelling insurance, mobile home insurance covers physical damage to your home, the loss and damage of its contents, and personal liability to you.
- Dwelling coverage: The structure of your home — the walls, windows, ceiling.
- Personal property: Everything not hammered down, from electronics to furniture to clothing.
- Liability protection and medical coverage: If someone sues you for damage your property caused their property or person, or sends you their hospital bill.
- Other structures: A fence or detached garage, for example.
- Additional Living Expense (ALE): If the fall-out of a covered peril makes your home unsuited for habitation, the insurance company pays to put you up in a hotel.
While the bones of the mobile home insurance policy (HO-7) are essentially the same as a classic homeowners policy (HO-3), there is a helpful point of customization with the HO-7 policies that the HO-3 doesn’t offer. You can tailor insurance for the manner in which you use your mobile home: as a full-time residence, a seasonal one, or a rental. Declare how your mobile home will actually be used to receive accurate coverage.
Note that coverage under a regular policy doesn’t apply while the mobile home is in transit. Talk to an insurance broker to find a policy that offers an endorsement if you know you will be transporting your mobile home.
- Fire damage
- Weather-related damage from wind, hail, ice, snow and freezing
- Damage resulting from theft or vandalism
- Damage from falling objects or vehicles
- Accidental water damage
- Accidental pipe damage
- Unexpected roof damage
- Damage to attached structures, like a patio or deck
Cost of Mobile Home Insurance
The cost of mobile home insurance varies. It could cost as low as $300 per year, or over $1,000 per year. There are a variety of factors that influence your mobile home insurance rate, including:
- The condition of your home: The newer your home is, the more expensive it will be to insure. Older homes are generally cheaper to insure.
- Where you live: The cost of mobile home insurance is largely dependent on where you live. If you live in a state that is prone to severe weather, expect to pay a high rate.
- Your claims history: If you have a history of insurance claims, your insurance premium will be higher. Typically, insurance claims stay on your record for 5-7 years.
- Your coverage limits: If you have high coverage limits for dwelling, personal property or liability insurance, your rate will be more expensive. Lowering your coverage limits can help you save money on your premium.
- Shop around for quotes. Premiums can vary pretty dramatically between providers, and the difference can be hundreds of dollars. You won’t have much luck shopping for mobile home insurance online. Call an independent insurance broker to get quotes from several providers.
- Look for an insurance policy that combines good rates with a good assortment of optional endorsements. Endorsements, or riders, are extra areas of coverage that you purchase to guard against common perils in your area, such as flooding.
- If you are purchasing a brand-new manufactured home, or looking to transport an existing model, talk to your insurance agent about getting coverage for the moving process. This won’t be covered by standard homeowners insurance or auto insurance.