Insuring a factory-built dwelling requires a specialized Manufactured Home Policy (HO-7). Standard homeowners insurance excludes these structures. Mobile Home Insurance provides essential protection for the dwelling, personal property, and liability risks.
Insurers distinguish strictly by construction date:
- Manufactured Homes (Post-1976):Â HUD-compliant structures. Easier to insure.
- Mobile Homes (Pre-1976): Higher fire risk. often requiring specialty high-risk insurance.
Policy Coverage Breakdown
1. Dwelling Coverage
Covers physical damage to the structure from:
- Fire and Lightning.
- Windstorm and Hail (Critical for tie-down compliance).
- Falling Objects and Vandalism.
2. Personal Liability
Indemnifies the owner against lawsuits for bodily injury or property damage occurring on the premises.
3. Personal Property
Reimburses the value of contents (furniture, electronics) lost in a covered claim.
Settlement Types: Replacement Cost vs. ACV
- Replacement Cost: Pays the cost to purchase a new unit of similar quality without deduction for depreciation.
- Actual Cash Value (ACV):Â Pays the current depreciated market value of the home. Common for older mobile homes.
Mobile Home Insurance Rates
Premiums are generally higher per $1,000 of value due to wind susceptibility.
Average Premium:
National rates range from $300 to $1,000 annually.
- Tie-Down Discounts:Â Certified anchoring systems can reduce premiums.
- Location Risk: Coastal regions (FL, TX) see significantly higher windstorm deductibles.
Who Needs It?
- Homeowners in Parks:Â Even if you rent the lot, you own the home. You need coverage for the structure.
- Landowners: If you own the land and the home, you can sometimes bundle the land liability with the home policy.
- [Internal Link Idea:Â Read our guide on Insurance for Mobile Homes on Private Land vs. Parks]
How Much Does Mobile Home Insurance Cost?
Rates are generally higher than standard homes per $1,000 of coverage because the risk of total loss from fire or wind is higher.
Average Cost:
National averages range from $300 to $1,000 per year.- Location: Rates in Florida, Texas, or Louisiana can be double due to hurricane risks.
- Tie-Downs:Â If your home is properly anchored (tied down) to a foundation, you often get a significant discount.
Frequently Asked Questions (FAQ)
Does it cover floods?
No. Standard mobile home policies exclude flood damage. Since manufactured homes are often placed in low-lying areas, purchasing a separate Flood Insurance policy is highly recommended.
- [Internal Link Idea:Â Do you need Flood Insurance for your Manufactured Home?]
Can I insure an older mobile home (Pre-1976)?
Yes, but your options are limited. Companies like Foremost specialize in older vintage mobile homes, but you will likely only qualify for an “Actual Cash Value” policy.
Does it cover the skirting and awning?
Usually, yes. Attached structures like carports, patios, awnings, and skirting are generally covered under the dwelling limit, but always double-check your specific policy endorsements.
Will the insurance cover the cost of moving the home?
Standard policies usually exclude moving the home. If you plan to move your manufactured home to a new lot, you must purchase a specific Transportation Endorsement or a temporary policy that covers the home while it is on the truck.
Does the age of the roof affect my insurance rate?
Final Thought
References & Trust Sources:
