Mobile homes, also called manufactured homes, are an investment just like traditional houses, and they should have insurance coverage. Many mortgage lenders and mobile home communities even require it. Here's what you need to know about mobile insurance companies, coverages and more.
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Mobile, manufactured and modular home differences
The terms "mobile home" and "manufactured home" refer to the same thing, but are different from modular homes, and are therefore insured differently. Manufactured and modular homes both share the benefit of being built in a factory, allowing them to avoid weather delays, and often making them more affordable than traditional homes. Although mobile and modular homes share a similar construction process, they conform to different building codes.
Mobile Homes: Mobile homes were constructed before June 15, 1976. Manufactured homes were constructed after June 15, 1976, when the Department of Housing and Urban Development set standards. Nevertheless, the term "mobile home" has remained in use. It can be harder to get insurance for mobile homes built before 1976, so you might need to look for a more specialized insurer. Manufactured homes are often not attached to a fixed foundation. They instead utilize anchors or are tied to the ground.
Modular Homes: Modular homes are shipped in pieces to their desired location, where the final assembly, wiring and plumbing are completed. At the final location, they're often built on a fixed foundation. Modular homes are built to local and state regulations. Modular homes are covered by regular home insurance policies.
What is mobile home insurance?
Mobile and manufactured home insurance includes protection for your home and belongings, and can help cover costs if you are liable for injuries to others or damage to their property.
Mobile homes are not covered by RV or camper insurance policies unless the mobile home has a hitch. However, it is rare to find coverage for your mobile home this way, so you will most likely need a separate mobile home insurance policy.
Mobile home insurance coverages
Mobile home insurance includes dwelling, other structures, personal property and liability coverages, much like traditional homeowners or renters insurance. Mobile home insurance usually covers the following:
|Coverage||What it does|
|Dwelling||Protects the physical structure of your mobile home. Dwelling coverage can protect you against theft and vandalism, windstorms and tornados, fire or lightning, and hail or other falling objects.|
|Other structures||Protects attached or unattached structures on your property, such as gazebos and sheds.|
|Personal property||Covers your personal property and belongings, such as furniture and electronics.|
|Liability||Covers you if you are liable for bodily injury or damage to somebody else’s property. Liability can help pay for costs associated with medical bills, legal fees and lost wages.|
|Additional living expenses||Covers you if your home is unlivable due to a covered loss.|
What does mobile home insurance not cover?
Mobile home policies won't cover damage from floods or earthquakes - you'll have to buy these coverages separately. While earthquake coverage can be pricey, flood policies are relatively cheap.
There are several other extra coverages you might consider getting. These policies, like earthquake and flood insurance, would require you to pay an extra premium. Extra coverage on mobile homes could include:
- Identity theft protection
- Replacement cost coverage to insure your home for the full amount it would take to buy a new home
- Scheduled personal property, also known as riders or floaters, for items you want extra protection for, like jewelry, furs, or antiques
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Do I need mobile insurance?
There is no law requiring mobile home owners to have insurance, but most mortgage lenders and some mobile home community parks require it. However, even if your loan provider or mobile home community doesn't require insurance, we still recommend it as a protection for your investment. For example, if a thunderstorm damages your home or property, an insurance policy can help with costly repairs.
Insurance for older mobile homes
While possible to get coverage, insurance for older mobile homes can be difficult to come by, especially if your home was built before 1976. The Department of Housing and Urban Development (HUD) introduced construction standards on June 15th, 1976, and homes built prior may not be up to code. Insurers see older mobile homes as high risk, and will charge a higher premium for coverage. In fact, insurance companies see any old home — mobile or not — as an insurance liability. The best way to find coverage for your older mobile home is by contacting insurance companies directly.
Mobile home insurance companies
Not every major insurance company offers mobile home insurance, but many have partnerships with insurers that specialize in it. For example, Foremost Insurance Group is one of the largest providers of insurance for mobile homes, and it is owned by Farmers Insurance. The following major providers offer their own manufactured home insurance policies:
- State Farm
- American Family
Assurant specializes in mobile home insurance, and partners with the following providers:
- Liberty Mutual
As is true with all types of insurance, it is always best to compare rates to find coverage that fits your budget and needs. There are significant differences in what different companies cover. We recommend contacting your agent for a complete coverage list.
Best mobile home insurance companies
Foremost and Assurant come out on top for the best mobile home insurance companies. Foremost has been insuring mobile homes for 70 years and is one of the biggest mobile home insurers. Foremost offers a wide range of optional coverages along with all the standard coverages. These optional coverages include personal injury and water damage from sewers and drains.
Assurant is also a great choice for mobile home insurance. Assurant partners with two of the biggest insurance companies, GEICO and Liberty Mutual, to provide mobile home insurance. If you have auto insurance with GEICO and purchase Assurant's mobile home insurance policy, you may be eligible for a bundling discount through GEICO. Assurant also offers great coverage and online quotes.
Cost of mobile home insurance
The cost of a manufactured or mobile homeowners insurance can vary for every person. Manufactured home insurance for a $80,000 mobile home built in 2000 that is tied down and fully skirted can cost around $304 a year if you choose Assurant. A $100,000 home can cost $333. Your annual premium will depend on several rate factors, including:
- Coverage amount
- Home location
- Claims history
- Credit history
- Age of home
Most mobile home insurance companies offer actual cost value (ACV) policies, as opposed to replacement cost (RC) policies. ACV policies pay out based on the depreciated value of your home or item, while RC policies pay for the cost to replace your home or item. This makes ACV policies more affordable.
How to save on mobile home insurance?
You may be able to receive a discount for bundling policies. If you already have home, car or life insurance, explore other policies from the same company by asking your agent if there are multi-policy discounts. You may also be able to get a discount if you're the original titleholder of your home or if you have protective devices installed.
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