Twenty-two million Americans live in mobile homes. The average price of a new mobile home is $70,600 without the land, which makes it an investment worth protecting (source).
In fact, since the year 2000, the average price of mobile homes has grown by 77%; which is similar to the 78% growth the overall housing price experienced in the same period. Notice below the steady growth in the value of mobile homes compared to the peaks and troughs of the overall housing market.
If you live in a manufactured home, mobile home insurance can provide coverage for your home and household. Like homeowners insurance, it offers liability protection and protects against damages to the property caused by covered perils.
Mobile Home Insurance Features
Here’s a closer look at all you need to know about mobile home insurance policies. By the end of this guide, you’ll understand everything you need to know about mobile home insurance. Let’s get started.
Property damage coverage
The property coverage portion of mobile home insurance usually covers the following:
- Dwelling. The mobile home itself, any attached structures, and all original equipment, parts, and accessories installed in the home by the dealer or manufacturer.
- Other structures. Structures that are separate from the mobile home but on the property (e.g. garages, storage buildings, etc.).
- Personal property. Contents and personal belongings inside the home that the policy does not exclude. Art, furs, jewelry, and other expensive items often require an additional rider.
- Loss of use. If you can’t live in your home due to a covered loss, this will cover your living expenses up to your policy limit.
Be sure to read the policy details and note any exclusions in your policy. The coverage only protects the above property under certain conditions and as the result of specific perils.
A peril is an event that causes damage to a property, like theft or a falling object. Home insurance policies may take either of the following approaches:
Policies which name all of the perils they cover.
Policies which name all of the perils they don’t cover.
Commonly covered perils include:
The approval of a claim depends on the circumstances leading to the loss. Like homeowners insurance, mobile home insurance won’t cover instances that were preventable or the result of neglect.
Property damage deductibles, limits, and exclusions
Mobile home insurance policies have deductibles, limits, and exclusions.
The deductible is the amount you either pay or deduct from your settlement when you file a claim and receive a settlement.
A limit is a dollar amount which represents the maximum settlement you can receive in a claim. It’s important to pay close attention to your limits to ensure they are high enough to replace or repair your property.
Exclusions are stipulations in your policy which outline situations or items that will not be covered. For example, expensive items are often not covered by a standard personal property policy.
You should have any valuable belongings appraised to ensure you have an adequate amount of coverage for them.
Property damage settlement payout methods
If your home or property suffers damage, the actual cash basis method is a common way to calculate the settlement amount. This method pays the cost of replacement minus depreciation.
You can pay more for the replacement cost coverage method, in which you’ll receive the full replacement cost without any depreciation.
Additionally, you may have the option to agree on the amount you’ll receive, which is known as the stated amount method.
Now for the liability coverage, which includes personal liability and medical payments to others.
This coverage pays if you or someone in your household is found legally liable for damages. The damages may be to another person’s property or a bodily injury. Some situations won’t fall under the coverage, such as acts that are intentional.
If someone aside from a family member suffers an injury on your property, this coverage will pay for their reasonable and necessary medical expenses. For example, if your child’s friend breaks their arm on your trampoline, it would cover the costs to treat it.
How do claims work? You’ll generally want to contact your insurance provider immediately after you experience a loss or are found legally liable for an incident.
It’s important to read through the details of your policy beforehand as some insurers require you to take specific actions when a loss occurs.
For example, if a storm comes, you may need to secure your property, lock your doors and windows, and remove valuable items.
It may also be a requirement to make reasonable emergency repairs in the midst of a crisis to prevent further damage. And if you experience a loss due to theft, you’re often required to contact the police.
After the emergency passes and you notify the proper parties, the insurer will usually come to inspect the damage. Next, they will approve or deny your claim. Upon approval, your settlement will be on the way.
Frequently asked questions about mobile home insurance
Now for some frequently asked questions about mobile home insurance.
Does mobile home insurance cover leaking water?
Mobile home insurance covers many situations which are sudden and accidental.
A water leak may fall under your coverage in certain situations—for example, if water freezes in the pipe and then the pipe bursts.
However, if your insurer can trace the leak back to a lack of maintenance, you’ll be out of luck. Note, each policy can vary so check with your insurer.
Can I get a discount on my mobile home insurance?
You may be able to get a discount on your mobile home insurance, but it depends on the insurer you choose. Be sure to check which discounts each insurer offers.
A common discount is one for holding multiple policies with the same company. Being so, find out if your auto or life insurance company offers mobile home insurance.
What’s the difference between a mobile home, a manufactured home, and a modular home?
According to the U.S. Department of Housing and Urban Development (HUD), factory-built homes made before June 15, 1976, are considered “mobile homes” while those constructed after that date are “manufactured homes” (source).
The HUD code went into effect on that date, requiring the homes to abide by construction and safety standards.
All three types of homes are built in a factory versus on a construction site. However, modular homes can have several levels and they sit on a foundation like a traditional house.
On the other hand, mobile and manufactured homes sit on movable chassis and are only one level.
What other coverage types might I want to add on to my mobile home insurance policy?
In addition to personal property coverage and liability, you may want to consider:
- Replacement cost coverage. If you get a new mobile home and it gets destroyed in a covered loss within the first five years, this coverage will pay for a new mobile home of similar cost and style.
- Umbrella policy. Umbrella policies help to cover any liabilities that may exceed your limits.
- Residential equipment breakdown coverage. This will cover the costs of repairing or replacing your home appliances and systems if they break down.
All of these go above and beyond mobile home insurance for those who need more coverage.
Can I just get a regular homeowner’s insurance policy for my mobile home?
Mobile and manufactured homes are not eligible for homeowners insurance because their construction makes them more vulnerable to damages.
How much does mobile home insurance cost?
The cost of mobile home insurance will depend on several factors including where you live, the value of your home, the deductibles and limits you choose, and more.
However, it’s usually more expensive than homeowners insurance. To find out how much it will cost you, you can get a few quotes online.
Where to get the best mobile home insurance
The best mobile insurance provider for you may not be the best one for your neighbor. Each company has its own unique specifications and some will offer more advantages than others.
A great way to find the right fit is to browse through the industry-leading insurers and pick your top three.
Do in-depth research on your three choices to learn more about them. Get quotes, read reviews, and vet the fine print on the policies to identify which one will offer you the best value.
Then, sign up and gain the peace of mind knowing that you have protection for your mobile home and household.
Ready to get started? Review and compare leading mobile home insurance companies side-by-side.
Andrew is the managing editor for SuperMoney and a certified personal finance counselor. He loves to geek out on financial data and translate it into actionable insights everyone can understand. His work is often cited by major publications and institutions, such as Forbes, U.S. News, Fox Business, SFGate, Realtor, Deloitte, and Business Insider.