Mobile Home Insurance: Do You Need It and What Does It Cover

There are many kinds of dwellings that individuals and families alike consider as home. While the bulk of the population may still prefer traditionally built structures that come in either stand-alone houses in the suburbs, apartment buildings in the city, or townhouses, others would prefer a home that is not shackled down to a specific location.

Because of this, the demand for mobile homes has been steadily rising. Oftentimes, even families who own a traditional house would invest in a mobile home for holiday use or as an extra income stream.

If you are considering purchasing one, or already have and are curious as to how you can properly protect the asset, below is a handy guide to mobile home insurance.

What is a mobile home?

Before diving into the specifics, let us first define what exactly is a mobile home to ensure that your property is qualified to get mobile home insurance policies. Mobile and manufactured homes are often interchangeable, so with “modular homes”. While the three generally pertain to the same thing and are widely accepted as such, there are technically a few differences.

A mobile home is a type of manufactured home that has been built before June 15, 1976. This is a significant date for manufactured homes as it is when the HUD Code was established. This code ensures safety and quality standards of all manufactured homes.

A manufactured home, on the other hand, is an umbrella term for any home built within a factory, and then delivered to the homeowner’s property.

Lastly, a modular home is similar to a manufactured home in the sense that it was also built in a factory then delivered to the site. However, it does not necessarily follow the standards of the HUD code as it is produced based on the state or regional code instead.

Is manufactured home insurance required?

No, the law does not require you to purchase mobile home insurance when you have a manufactured home. However, it can be very beneficial in certain cases, such as:

Home lenders

Upon the discretion of the home lender, they may require the debtor to maintain a minimum amount of coverage before they are eligible for a mortgage.

Mobile home parks 

Many mobile manufactured parks now require homeowners to invest in at least the standard mobile home insurance policy before being able to stop in the property.

Natural disasters, accidents or theft       

Natural disasters, accidents, and theft are all unplanned circumstances that can occur at any given time. By purchasing insurance, you are essentially protecting you and your home.

What are specific examples of things that are covered by mobile homeowners insurance?

Below are the standard inclusions of mobile home insurance, and some specific examples as to what items fall under them

Dwelling coverage

• Main structure of home
• Deck, garage, shed, fence, and other permanent structures within the property of your home
• Trees, plants, shrubs, lawn, and other landscape

Personal property coverage

• Electronic devices
• Clothing
• Furniture
• Jewelry
• Art and other collectibles
• Kitchen equipment
• Other personal belongings inside your home and property

Personal liability coverage

• Legal fess if you are responsible for another individual’s injury or damage to their property
• Cost of replacement or repair of physically damaged assets that are under your responsibility

Loss of Use / Additional Living Expenses (ALE)

• Hotel costs
• Rental fees
• Restaurant meals
• Other items that you would normally spend on in the event that you can’t stay in your mobile home due to events covered by policy limits

Other common inclusions

• Removal of debris for certain damages covered by your policy
• Damage incurred during the emergency removal of structures, given that it was moved to prevent damaged covered by your policy
• A loss assessment

It is important to note that not every insurance company offers all of this under their standard policy. Moreover, some items may have certain coverage limits such as for jewelry, art, and other collectibles. As the policyholder, you have the right to purchase add-ons or riders that can increase your coverage limit and ensure that your personal property is efficiently protected.

Common limits on coverage

Here are some of the most common limits throughout most insurance policies:

• $250 on cash and coins.
• $500 for food left in refrigerators or freezers.
• $1,500 on watercraft.
• $2,500 for theft of jewelry, watches, gems and furs.
• $2,500 for theft of silverware and goldware.
• $2,500 for theft of guns.
• $500 for a fire department service charge.

Do mobile home insurance cover all kinds of perils?

Different insurance companies include varying perils in their standard packages. More often than not, fire, windstorms, hail, lightning, and vandalism are some of the most common perils that are added to the standard package. This, of course, could vary depending on the location, state, and ZIP code of your mobile home.

It is highly recommended to include perils that commonly occur in your area. If they are not already part of your standard policy, you should have the option to add them or purchase as a separate policy. Perils include the following:

• Fire, smoke, or lightning.
• Windstorm or hail.
• Explosions and volcanic eruptions
• Riot or civil disobedience.
• Falling objects.
• Vehicular accidents (cars, planes, and others that cause damage to your property)
• Theft.
• Vandalism.
• Weight of snow, ice or sleet.
• Freezing of pipes (However, this may not be covered in the instance that you turned the heater off and left your home).

What do mobile homeowners insurance companies not pay for?

Mobile home insurance companies typically will not give compensation for damage or other costs due to the following:

• Confiscation or destruction of your property by a civil authority
• Nuclear hazard
• War and military action
• Neglect
• Earthquakes, landslides, erosions, and similar earth movements
• Storm surge
• Water damage due to sewers or drains that backed up or sump pumps that overflow
• Power failure due to a different source
• Intentional damage
• Bacteria, fungi, and rot

You’re All Set!

Before settling on an insurance provider, make sure that all your preferences and needs are accounted for. Whether this means having it included in the standard package, as an add-on or rider, or a separate policy – the most important thing is to have your essentials protected.