The Ultimate Guide to Mobile and Manufactured Home Insurance

‍Mobile homes have been around since the early 1900s and provide affordable housing for those who cannot afford a traditional home or those who enjoy the ability to pick up and move their homes. Manufactured homes refer to any prefabricated home built off-site from 1976 and forward. 

Manufactured homes have come a long way from their inception in 1976, when the U.S. Department of Housing and Urban Development outlined new building codes for mobile homes. This code established federal standards for building aspects such as electrical safety, strength and durability of materials, performance standards for HVAC, and energy efficiency.

Despite these increased standards, manufactured homes pose unique risks not associated with more traditional homes, or homes built on a foundation. Because of that, insurance for mobile and manufactured homes may be more difficult to get if you don't know what to look for. 

In this guide, we offer comprehensive information on what kind of insurance you need for mobile homes, what kind of insurance you need for manufactured homes, as well as how much you can expect to pay and what additional coverage you need (if any).

• What is mobile and manufactured home insurance?
• What is included in mobile and manufactured home insurance?
• What is not covered in mobile and manufactured home insurance?
• Can you get flood insurance for a mobile home?
• How much is mobile home insurance?
• Who insures mobile homes?
  

What Is Mobile and Manufactured Home Insurance?

Mobile and manufactured homes cannot be covered by a homeowners policy. Pre-fabricated homes’ unique structures make them more susceptible to natural catastrophes, increasing their insurance risk.

However, mobile home insurance is very similar to homeowners insurance. Both offer home, personal property, and liability protection. One of the main differences between these two properties is that mobile homes are not required by law to be insured. 

But before you think twice about skipping coverage, many mortgage companies and mobile home communities require proof of coverage. And with the average manufactured home in the U.S. costing $88,200, that’s a big investment to not have covered.

What Is Included in a Mobile and Manufactured Home Policy?

As you shop around for mobile and manufacture home insurance, it’s important to know what is covered in a basic policy. Here we’ve detailed the most common coverages in a mobile or manufactured home policy.

Coverage for your property 

As in a homeowners insurance policy, insurance for mobile or manufactured homes offers coverage for any damage sustained to the physical structure. Hail damage to your roof? Covered. Broken window from vandalism? Covered. 

Most policies cover up to your policy limits if your mobile or manufactured home is damaged by fire, smoke, wind, rain, explosions, vandalism, or lightning. This coverage, also known as dwelling coverage, applies to attached structures on your property. So, if you have a deck, porch, or steps attached to your home, they would be included in the dwelling coverage. 

Protection for your personal items

Mobile and manufactured homes are more susceptible to damage from natural and environmental disasters such as fire and high winds. As discussed previously, your mobile or manufactured home is protected from both these catastrophes. And, if any of your personal items inside are damaged due to select catastrophes, such as a fire burning your oven, your policy will reimburse you up to a set amount.

If you have high-value items, it’s recommended to purchase additional coverage, which we’ll talk about later.

Liability coverage

Imagine a worst-case scenario – your neighbor is visiting and he slips and falls on the steps leading to your home. He breaks an arm and suddenly you are left with mounting legal and medical bills. Without proper insurance, you are responsible for paying out of pocket. However, a mobile and manufactured home insurance policy can pay for your neighbor’s expenses in addition to any damages and legal costs incurred. 

Note: Liability coverage does not extend to members of your household. If you were to slip and fall on your steps, your mobile home insurance policy would not cover medical bills. 

Loss of Use/Additional Living Expenses

This coverage applies if your home is damaged to the point where you can no longer live in the home. If you are required to live somewhere else temporarily, this coverage will reimburse you (once your deductible is met) for hotel costs and meals. A common example is if your home is damaged in a fire. You may need to spend a week in a hotel while your home is repaired and made safe again. Depending on your deductible and policy limits, your insurance will help cover your stay and the repairs to your home.

What is Not Covered in Mobile and Manufactured Insurance?

There are certain events that a basic insurance policy for mobile and manufactured homes will not cover. Each plan and insurer differ, but you can expect to see these events typically excluded:

• Floods. Water damage caused by flooding will never be covered by a typical insurance policy. However, if the water damage is caused by something inside your home, such as an overflowing toilet or burst pipe, it may be covered by your mobile home insurance. 
• Earthquakes. Standard insurance does not cover damage or loss due to earthquakes. This includes any seismic event (such as volcanic activity) that occurs within 72 hours of an earthquake. Some insurers may cover fire damage resulting from an earthquake, but it’s best to ask an agent and determine if you live in an at-risk area.
• Hurricanes. If you live in a hurricane-risk area, you’ll need additional endorsements to protect you from the damage hurricanes can cause. Typically, homeowners invest in both flood insurance and windstorm insurance; many standard policies cover damaged caused by wind, but if you live in a coastal state, you’ll need additional coverage.
• Mold. Similar to water damage caused by flooding, mold is also not covered. Mold can turn into a health hazard, so be sure to treat it as soon as you find it.

If you have questions on what is or is not covered with mobile home insurance, reach out to an agent today. They’ll be able to answer specific questions about your property and your belongings.

Related Reading: What Is Insurance Exclusion?

Can You Get Flood Insurance on a Mobile Home?

Yes, you can get flood insurance on a mobile home. And, if you are one of the 50,000+ manufactured home owners in Florid or in another high-risk area, you’ll likely need flood insurance.

Flood insurance will need to be purchased as an additional endorsement or policy as it is not covered by standard policies. Flood insurance can be purchased through a private flood insurance company or through the National Flood Insurance Program. 

If your mobile or manufactured home is in a high-risk flood zone and you have a federally-backed mortgage, you are required to have flood insurance.  

Flood insurance not only protects the structure of your home, but also the contents inside. For example, the National Flood Insurance Program offers up to $100,000 in actual cash value coverage for your belongings. Private insurers typically offer more coverage, with less waiting time.

How Much Does Insurance for Mobile and Manufactured Homes Cost?

Like any insurance policy, there is no cost of mobile home insurance. Your premium will vary depending on a variety of factors. Your quote will consider information such as:

• The home’s value, age, and size
• Location – to determine risk of floods, wildfires, crime, etc. 
• Repair and renovation history
• Materials used to build your home
• Presence of smoke detectors, fire extinguishers, and sprinklers in your home
• Security features such as deadbolts and alarms

In general, insurance premiums for mobile and manufactured homes run between $300-$1,000. If you choose a higher deductible, you may pay less; however, you will pay more out-of-pocket to cover damages before your deductible kicks in. Choose a lower deductible and your monthly cost will be more, but you could save thousands of dollars in the event of damage or catastrophe.  

How Much Insurance Do I Need?

The answer is it depends! As you can see, many natural disasters are covered through a standard insurance policy for mobile and manufactured homes. You’ll want to speak with an agent to determine if your coverage amounts to what it would cost to rebuild or replace your home with comparable materials, in the event of a catastrophe. 

For personal property, your coverage amount is usually set to 50-70% of your dwelling coverage amount. So, if your home is insured at $80,000, your personal property coverage will be around $40,000 if set at 50%. You may need to increase this amount to account for any high-value items you have, such as jewelry, electronics, or high-end appliances. 

Lastly, liability coverage is typically set at $100,000. While this may seem like a lot—especially if you never need it—this money goes quickly in the event of lawsuits or medical bills. Additional liability coverage can be purchased for only a few dollars more per month, depending on your insurer. 

If you need to increase your liability coverage above your policy amount, you may consider an umbrella policy. Umbrella policies go into effect once you’ve met your policy limit. That is, if you have liability coverage set at $100,000, you can buy an umbrella policy to begin reimbursement for anything over $100,000. Umbrella policies apply exclusively to liability coverage and cannot be used for dwelling coverage. 

Who Insures Mobile Homes?

The unique nature of mobile homes makes insurance buying more complicated than seeking out a traditional homeowners policy. You may be having trouble finding a reputable company to insure your home. Some companies may say they cover mobile homes, but require an extensive conversation with agents before giving you a quote for your property.

If you are looking for a timely quote and comprehensive coverage options, Steadily is here. Fill out a quick quote form with basic information on your home and we will get back to you within a business day.

‍