Mobile Home Coverage
Mobile home, also referred to as manufactured home, insurance is similar to homeowners insurance. Due to their unique construction, ability to be transported and their vulnerability to certain weather conditions and fire, mobile homes do not usually qualify for standard homeowners insurance, which is why mobile home coverage is available.
FAQs
Mobile versus manufactured versus modular homes
While these terms are often used interchangeably, there are key difference between these three types of dwellings. Both mobile and manufactured homes rest on a movable chassis and are single level. According to the U.S. Department of Housing and Urban Development, mobile homes were built prior to 1976, while manufactured homes were built after 1976. Modular homes, on the other hand, sit on a traditional foundation and can include multiple levels. Modular homes usually qualify for standard homeowners insurance.
What does mobile home insurance cover?
Standard mobile home policies will typically include the coverages below.
Dwelling
This coverage helps pay for the cost to repair or replace your mobile home within your policy limits if it is damaged by a covered cause of loss and usually includes fire, explosion, vandalism and falling objects. It can also include events such as wind, hail and lightning.
Other structures
This coverage part is intended to cover structures, like sheds and fences, which are not attached to your dwelling.
Personal property
This coverage part pays to repair or replace your damaged or stolen belongings and includes things like clothing, furniture and electronics. If a burglar breaks into your mobile home and steals your TV, your personal property coverage would respond.
Liability
This coverage part helps protect you if a guest is injured on your property or if you unintentionally cause damage to someone else’s property. Liability coverage often includes legal expenses (like settlements, defense and judgements) in the event you are sued due to injuries or damage you are liable for. For example, if a visitor slips and falls in you mobile home and is breaks their arm, liability coverage would help pay for their medical bills.
Other coverages
Additional coverages may be available to enhance your mobile home policy. Below are some of the most common additional coverages.
Additional living expenses can help pay for your living expense if you’re unable to occupy your mobile home during repairs resulting from a covered cause of loss. This can include temporary lodging and meal expenses.
Trip and transportation provides collision coverage while your mobile home is being moved to another location.
Breakdown coverage pays for repair or replacement of major appliances in your mobile home if they fail due to mechanical or electrical issues.
Emergency removal covers the cost of removing damaged property and debris from your mobile home after a covered loss.
What doesn’t mobile home insurance cover?
While insurance is designed to protect you from accidents, it is important to remember that no insurance policy covers everything. Standard mobile insurance typically excludes the following types of losses.
- Wear and tear
- Damaged from vermin, rodents and insects
- Deterioration including rust and rot
- Mold
- Earthquake
- Flood
Tie down requirements
If your mobile home is not secured to the ground with a permanent foundation, your insurance carrier may require that it be secured with tie downs and ground anchors. Each insurance carrier will have different requirements in this regard so it is important to understand how your policy defines these terms.
How much coverage do I need?
Your dwelling limit should be equal to what it would cost to rebuild or replace your mobile home with equivalent materials. Typically, the limit for personal property is a percentage of the dwelling limit, usually 50% to 70%. If your mobile home dwelling limit is $100,000, you would likely have $50,000 of personal property coverage. Limits can often be increased if you need extra protection for your personal belongings and it is a good idea to keep a home inventory to help determine how much coverage you need. Liability limits should be high enough to cover your net worth.
Valuation
Mobile home insurance can have one of three methods for valuing your items, replacement cost, actual cash value or agreed amount.
- Replacement cost is the full cost to replace the damaged item with a new one.
- Actual cash value covers your belongings at their current market value (the cost new, less depreciation).
- Agreed amount is a figure that you and your insurance carrier agreed to when creating your policy. You are guaranteed to receive this amount in the event of a total covered loss.
Is mobile home coverage required?
Mobile home insurance isn’t required by law but many mortgage companies and mobile home parks require coverage. You’ll want to verify what type of coverage and limits your mortgage company or mobile home community require in order to select the appropriate coverage. Plus, mobile home insurance helps protect you financially from loss.
What does mobile home coverage cost?
There are numerous factors that can affect the cost of mobile home insurance. Location, age and size are usually considered when pricing this coverage. The insurance carrier may also use your credit history and whether or not you own the land underneath the mobile home to determine your premium. Discounts may be available if you bundle multiple types of coverage with the same carrier or if your mobile home contains security and safety features.