Mobile Home Insurance: Do You Need It and What It Covers

Mobile home insurance, also known as manufactured home insurance, is similar to standard homeowners insurance in that it provides financial protection if your home is damaged. While it is not required by law, mortgage companies and mobile home communities may insist on it.

The exact coverage provided by a mobile home insurance policy depends on the policy you purchase, but policies typically protect your home and personal property while also providing liability coverage. Even among the best mobile home insurance companies, policies vary in price, so comparing multiple quotes is often the best way to find cheap mobile home insurance.

Do you need mobile home insurance?

Although it is not required by law, mortgage companies and mobile home parks may require proof of insurance before working with you.

As a result, anyone planning to get a mortgage or put their home in a mobile home park should check the requirements and, at the very least, look into mobile home insurance.

Given that the average cost of a new manufactured home in the United States is $92,600, we recommend purchasing mobile home insurance to protect your home and belongings. While policies can be expensive, not having coverage puts you at risk of a large financial loss.

What about modular home insurance?

While both manufactured and modular homes are built in factories, they share very little else. Mobile home insurance and modular home insurance policies cover two different types of homes, so if you have one, you don't need the other.

Below is a list of the common features of the two types of homes to help you decide whether you'll need manufactured home insurance or modular home insurance.

If you're still unsure about the type of house you have, look for a certification label, also known as a Housing and Urban Development (HUD) tag. The HUD tag is a small metal plate attached to the exterior of a manufactured home. Alternatively, you can ask your prospective insurance company to assist you in determining the type of home you have.

What does mobile home insurance cover?

Mobile home insurance provides all of the coverage provided by a standard homeowners insurance policy, including coverage for your home and property.

The coverage for a mobile home is very similar to that of a standard homeowners insurance policy. Manufactured home insurance covers the policyholder's home and belongings, as well as liability protection.

Policyholders can customize their policies with endorsements, which supplement a standard policy, from mobile home insurance companies. Endorsements provide coverage that isn't included in a standard homeowners insurance policy, such as debris removal and sewer water damage.

Manufactured homes are vulnerable to fire damage. Check to see if your policy covers this hazard. Policyholders can also specify their own coverage limits. The following are the primary coverages provided by mobile home homeowners insurance.

Dwelling coverage: This coverage pays to rebuild or repair your home's physical structure if it is damaged by a covered peril. For example, if a fire causes a wall in your mobile home to collapse, the damage would be covered by dwelling coverage. Other structures covered by dwelling coverage include your roof and an attached deck to your mobile home.

Personal property: Mobile home insurance protects your personal belongings in the event that they are damaged or stolen. For example, if a burglar enters your mobile home and steals your laptop, you would be protected. Keep in mind that filing a claim will require you to pay a deductible.

Liability protection: This coverage protects you if someone is injured on your property. For example, if a falling tree branch on your property hits a neighbor, you could be held liable. If you have this coverage, your insurance company will pay for legal fees as well as damages if you are found to be liable. Your insurance company would only provide financial protection up to the limit of your coverage.

Other structures: Many mobile home insurance policies cover permanent structures that are not permanently attached to your home, such as a garage or a tool shed.

Additional living expense: If you are unable to live in your home due to a covered loss, this coverage compensates you for additional living expenses while you are living elsewhere. For example, if your mobile home burns down, your insurance company will pay for the cost of a hotel room up to your coverage limit.

How to find a mobile home insurance quote

It can be difficult to find mobile home insurance quotes because many well-known insurance companies do not provide quotes online. State Farm and Allstate, two of the nation's largest homeowners insurance companies, for example, require homeowners to speak with a representative in order to obtain a mobile home insurance quote.

The cost of mobile home insurance is heavily influenced by the insured home's location, age, and coverage limits. However, comparing quotes is the best way to find low-cost mobile home insurance. If you can't find mobile home insurance quotes online, consider contacting an independent agent in your area.

Insurance for older mobile homes

Unfortunately, getting insurance for older mobile homes can be difficult and expensive because they were built before 1976 with unregulated building standards. In 1976, HUD created the Manufactured Home Construction and Safety Standards (MHCSS). Homes constructed after June 15, 1976, are referred to as manufactured homes, while those constructed prior to that date are referred to as mobile homes.

Nonetheless, homeowners seeking insurance for older mobile homes should speak with an independent agent. While it is difficult to obtain quotes for new mobile homes online, it becomes increasingly difficult for older mobile homes. An independent agent will most likely be able to obtain a quote from a mobile home insurance company in your area. It is possible that you will have to purchase coverage from a regional insurance company rather than a national one.

Best mobile home insurance companies

There are a few top-rated mobile home insurance providers that stand out due to their extensive coverage options. The following are the top mobile home insurance companies:

Assurant Mobile Home Insurance: Assurant is a top-rated mobile home insurance company because it provides policyholders with a one-stop shop. Assurant offers policyholders coverage for perils not typically covered by other mobile home insurance policies, such as floods and earthquakes.

While these coverages can be added by other mobile home insurance companies, Assurant mobile home insurance includes them as standard, which is both unusual and useful.

Foremost Mobile Home Insurance: Foremost has been insuring mobile homes for over 65 years. However, it is the breadth of its options that distinguishes it as one of the best mobile home insurance companies. Policyholders can purchase a basic mobile home insurance policy, but they can also add a plethora of endorsements.

Optional replacement cost is one of its strongest endorsements. The endorsement allows policyholders to replace damaged items with new ones without taking a depreciation deduction, up to a maximum of 20% of the amount of insurance on the home. While this is a common feature of a standard homeowners policy, it is uncommon in mobile home insurance.

Frequently asked questions

Are manufactured home insurance and mobile home insurance the same?

Manufactured home insurance and mobile home insurance are the same thing. The distinction between the two is that manufactured homes were built after June 15, 1976, when the Department of Housing and Urban Development (HUD) implemented more stringent standards. It may be more difficult to obtain insurance for mobile homes built before 1976, so you may need to seek out a more specialized insurer.

Is mobile home insurance required?

Insurance for mobile homes is not required by law. If you have a mortgage or live in a mobile home park, you may be required to buy a policy.

Can you get a mobile home insurance quote online?

A mobile home insurance quote can be obtained online, but not from every company. Quotes are available online from Assurant, which sells policies through Geico and Progressive. State Farm and Allstate, for example, require you to call for a quote.

What's the difference between modular and mobile homes?

Modular homes are built in multiple pieces and look more like traditional homes. Mobile or manufactured homes are typically built in one piece on a metal frame. Modular home owners should obtain standard home insurance policies rather than mobile home policies.

Methodology

For a mobile home in Texas, we obtained sample quotes from Assurant via Geico. Your rates will almost certainly differ. The following are the coverage limits used for quotes: