What Is Mobile Home Insurance?

What Is Mobile Home Insurance?

As with any residence, it is crucial to protect the physical structure of your mobile home and the belongings within it. Mobile homes have grown in popularity among affordable housing options in the United States. However, despite the similarities between mobile homes and traditional site-built homes, this type of dwelling doesn’t usually qualify for homeowners insurance. Instead, you need mobile home insurance — sometimes called manufactured home insurance — to cover you if your mobile home is damaged.

What Is Mobile Home Insurance and How Does It Work?

Mobile home insurance is designed for the unique needs of mobile homeowners who are looking to protect their physical property and personal effects. Unlike traditional homes built on construction sites, mobile homes are assembled in factories and delivered to your property as one complete piece. Due to the unique creation of mobile homes, these dwellings require different insurance coverages than site-built homes. They need a mobile home insurance policy.

Some other common characteristics of mobile homes which can affect how insurance works include the following:

  • They can sit on non-permanent foundations.
  • They never have more than a single level.
  • They are typically assembled on a metal frame.
  • They are often boxy in shape and look similar to trailers.
  • They rest on a movable chassis instead of a slab, basement or crawlspace.

The unique construction of mobile homes, and their vulnerability to certain weather conditions, often disqualifies them for conventional homeowners insurance. Even though mobile home insurance and homeowners insurance provide similar coverages, you must purchase the right policy for your home type to protect the dwelling’s structure and your personal property.

What Does Mobile Home Insurance Cover?

The items covered on a mobile home insurance policy should be tailored to your specific needs. Your policy can differ significantly from other mobile homeowners based on the many coverage options available — from the limits you can carry on standard coverages essential for most mobile home insurance to the extra coverage features needed for particular lifestyles.

Any standard mobile home policy should include three basic coverage options:

  • Dwelling coverage: This coverage pays to repair or replace damage to the physical structure of your mobile home after a covered peril. Coverage can pay for damage to walls, floors, foundation, roofing, attached structures and built-in appliances like furnaces or water heaters. Choose a limit high enough to cover the cost of rebuilding your mobile home in case it’s destroyed entirely.
  • Personal property coverage: This type covers the cost of furniture, jewelry, electronics and other personal effects if they’re damaged or stolen. Coverage will only reimburse older items for the price of the object minus its depreciated value. Consider upgrading to a replacement-cost endorsement if you want to receive the cost of a similar new version instead.
  • General liability protection: Liability protection covers you for bodily injury and property damage you accidentally cause to others, whether inside your mobile home or in the surrounding area. Your insurance will also cover any legal defense and medical expenses should you be found liable for injury or damage.
What Is Mobile Home Insurance?

Your standard mobile home insurance will cover specific risks and threats, which your policy may refer to as named or covered perils. Covered perils typically include the following:

  • Fire and lightning
  • Windstorms
  • Hail
  • The weight of ice and snow
  • Falling objects
  • Burst pipes
  • Malicious damage like vandalism or theft

Check what events are covered in your standard mobile home policy to determine what potential coverage features you need to add.

Potential Coverage Features for Mobile Home Insurance

Extra coverage options are valuable for a mobile home insurance policy to increase the home’s protection level. Depending on the insurer, the following optional endorsements could come standard with your policy or at an additional price:

  • Other structures coverage: This coverage pays to repair or replace a fence, shed, garage or other structure not attached to your home that a covered peril has damaged.
  • Additional living expense coverage: Living expenses coverage reimburses you for the cost of a hotel or rental if a covered incident makes your mobile home temporarily uninhabitable.
  • Trip collision coverage: This coverage pays to repair your mobile home if it’s damaged in transport between locations. This type of coverage can be crucial for mobile homeowners who plan to relocate often.
  • Water backup coverage: This endorsement covers you for water damage resulting from a broken sump pump or backed-up drains.

Search for an insurance company that offers the extra coverage features you require. For example, if you live in a high-risk flood zone or seismically active region, you may want to add an endorsement to cover damages from natural disasters. While it is best if this coverage comes included in your standard policy, some potential coverage features are typically excluded or may not be provided by the insurer at all.

Most mobile home insurance doesn’t cover flood damage or “earth movement,” so you must purchase separate flood insurance and earthquake coverage if these events are a primary concern.

Mobile Home Insurance vs. Homeowners Insurance

Despite the similar coverage options for mobile home insurance and homeowners insurance, the two are not precisely the same. In both cases, the homeowner wants to protect the actual dwelling against damages, protect the belongings kept inside and have general liability coverage for injuries or damage caused to others on the property. However, without the correct insurance for your particular type of home, you could risk being unqualified for these coverages when disaster strikes.

If you purchase homeowners insurance, it’s generally priced based on the replacement cost of your home. Mobile home insurance differs from homeowners insurance because it’s typically priced on the actual cash value of the property, which can be significantly less than the replacement cost. Additionally, mobile home insurance often has lower limits for personal property coverage.

Do You Need Mobile Home Insurance?

Mobile home insurance is not required by law, but proof of insurance may be necessary for some situations. Certain mortgage companies and mobile home communities may require that you purchase coverage before they work with you. An excellent mobile home policy can be helpful when managing risk or loss, so check for any insurance requirements if you plan to take out a mortgage or place your home in a mobile home community.

factors-to-determine-insurance

Another reason you may want mobile home insurance is to cover the cost of a rebuild. To determine how much insurance you need, consider the following factors:

  • The replacement cost of your mobile home if you had to buy a new one on the market.
  • The value of your jewelry, furniture, electronics and other belongings kept inside your home.
  • The cost of any upgrades or improvements you’ve made, such as stainless-steel appliances or granite countertops.

A mobile home insurance policy will protect your home and personal effects if you cannot afford to replace them yourself after a sudden disaster. It may be necessary to cover your home up to its total replacement value as a safety precaution for your investment.

What Is the Average Cost of Mobile Home Insurance?

How much does mobile home insurance cost? The price for mobile home insurance ranges from a few hundred dollars to thousands of dollars annually based on your particular situation. Your policy’s cost depends on the numerous variables the insurance company considers when pricing your policy. While some factors are out of your control, you can adjust others to help lower your insurance rates.

Fixed factors that affect the cost of insurance include:

  • The age and condition of your mobile home: Structural wear and tear, often associated with older homes, can increase your risk and your rates.
  • The location of your home: Areas prone to theft, fires, flooding or wind damage have more liability and will be factored into your annual premiums.
  • The size of your mobile home: Your insurer may factor the size of your mobile home into your annual insurance rates, as more square footage could lead to higher premiums.
  • The materials used to build your home: Certain materials are likely to incur different insurance rates based on their vulnerability to termites, fire and other dangers.
  • Special features: Swimming pools, hot tubs, trampolines and other features could pose a safety hazard to guests, which your insurer will view as an added liability.
  • State laws: There may be a wide variation in coverage costs between different states and even different ZIP codes.

Factors within your control that could influence the cost of mobile home insurance include:

  • Your claims history: If you’ve filed many claims in the past, your insurance company will think you’re more likely to file a claim in the future, which often leads to higher rates.
  • Your coverage limits: Lower limits mean lower premiums, but you should still cover your home’s full replacement cost value in case you need to rebuild your entire home.
  • Your deductible: This is the amount you must pay out of pocket before the insurance company begins paying out your claim. The higher your deductible, the less your policy will cost.
  • Home renovations: Improvements to the physical structure of your mobile home, such as weatherproofing or strengthening the roof, could lower your insurance rates.
  • Home safety devices: Devices like smoke detectors, sprinklers and fire extinguishers improve your home’s safety, usually resulting in lower premiums.
  • Home security features: Installing alarm systems, deadbolts, fireproof safes and security gates will make your home more secure and can positively affect the coverage cost.
  • Your credit score: Most insurance companies view a good credit score as a sign of financial stability, which can help bring the price down across various types of insurance.
What More Can You Do to Help Lower Your Rates?

What More Can You Do to Help Lower Your Rates?

The best thing you can do to lower your rates is to compare quotes. The more quotes you can compare, the better informed you will be when choosing a policy.

Policies can vary widely in cost, even among the highest performing mobile home insurance companies. Before going with the first option you find, consider reaching out to a professional company that can help you quickly compare quotes from various insurers in your area. You can easily buy mobile home insurance from a national or regional insurance company. However, getting quotes from multiple insurance companies could help you find the best mobile home policy for the most affordable price.

A mobile home insurance agency like David Pope Insurance Services, LLC can provide all the information you need to make an educated decision, including any applicable discounts. While discounts may vary between insurance companies, some common ones include bundling multiple policies, having a home security system, being the home’s original owner, autopay options and a new home discount.

Does Mobile Home Insurance Cover Modular Homes?

Modular homes must comply with the same building standards as conventional site-built homes. Modular homes look more like a traditional home, often have multiple stories and a basement or crawl space, sit on a more permanent foundation and cannot be relocated after assembly. The distinction between modular homes and mobile homes might even affect your insurance choices since mobile home insurance usually doesn’t cover a modular home’s needs and protection level.

While modular homes and mobile homes are both constructed in factories, there is little else in common between these two home types. Mobile homes are delivered as a complete unit with a single floor that can rest on a non-permanent foundation. On the other hand, modular homes are transported in multiple pieces assembled at the building site and affixed to a more permanent foundation. Most insurance companies will have you purchase a traditional homeowners insurance policy to cover your modular home.

How Do You Get Insurance for Older Mobile Homes?

It is more challenging to obtain insurance for older mobile homes, as many were built with unregulated safety standards. It wasn’t until June 15, 1976, that federal law mandated stricter building standards for mobile home construction. The U.S. Department of Housing and Urban Development (HUD) will not inspect or issue tags for mobile homes constructed before this date, even if modifications have been made to meet the standards.

If your mobile home was built before 1976, you might have to purchase coverage through a regional mobile home insurance company. Most national insurance companies will rely on your mobile home having a HUD certification label, something impossible for older homes to obtain. Contact a professional company that can help you get quotes from insurers in your area willing to cover your home regardless of its age.

What Is the Best Mobile Home Insurance Company?

With how much mobile home insurance is for the typical homeowner, you will want to choose the best coverage from the best company for the best price. However, the factors dictating your coverage requirements and cost can vary widely between each mobile homeowner. The best mobile home insurance company for you may be different from the best company overall.

Although mobile home insurance isn’t available through all insurance companies, many insurers are still dedicated to bringing you coverage for your mobile home. It is best to explore all the insurance options in your area to ensure you get the proper coverage and the best deal.

For example, many companies don’t include floods and earthquakes as covered perils in their standard mobile home policies. If these coverages are something you require, know that the few other companies that offer these coverages do so for an additional price. In addition to the coverage options, you want to evaluate all mobile home insurance companies based on cost, customer service and available discounts.

An experienced company, like David Pope Insurance, can help homeowners compare these factors to find the right policy for their needs.

Find the Right Mobile Home Insurance Policy With David Pope Insurance Services, LLC

Find the Right Mobile Home Insurance Policy With David Pope Insurance Services, LLC

David Pope Insurance is a flexible, progressive company dedicated to finding the best premiums and coverage options for mobile homeowners in Missouri. We will work with numerous insurance companies to provide you with peace of mind knowing you’ve purchased the right mobile home policy for your needs at an affordable price.

Get your fast, reliable quote for mobile home insurance rates in your area today, or give us a call at 636-535-1055 for more information. We want to answer any questions you have about your new mobile home insurance policy.

Learn More About Mobile Home & RV Insurance

icon-angle icon-bars icon-times