Mobile homes are getting a bit of a rebrand these days. Sure, the old-school shoebox style is still going strong. But lots of mobile home manufacturers are leveling up with designs that look a lot more like traditional homes.
Still, anything built on a moveable (towable) chassis isn’t going to appreciate in value like a traditionally built home. And that’s the main reason why we don’t recommend you go out and buy one. But—if you already own a mobile home, we do want to make sure you’re doing all you can to protect the investment you made.
And that means insurance.
And just like homeowners insurance, mobile home insurance offers all the coverage options you need to protect your home and belongings.
Let’s go over everything you need to know.
What Is Mobile Home Insurance?
Mobile home insurance (aka manufactured home insurance) provides financial protection in case your home is damaged or destroyed. It covers your belongings, the structure, and legal and/or medical costs if you cause harm to others.
Some mobile-home owners might think they can skip insurance since they don’t own a more traditional, expensive home. That’s a mistake. Not only are mobile home costs rising, but the structures themselves are also more vulnerable to natural events—windstorms, for example—than traditional homes.1
Having insurance is a big part of your defensive financial plan. It transfers your risk to the insurance company—if something goes wrong, they pay to repair or replace your stuff So, unless you have the cash to pay for all of that out of pocket, you need insurance for your mobile home.
What Does Mobile Home Insurance Cover?
The exact coverage of a mobile home insurance policy depends entirely on what type of policy you purchase. But in general, this is what a typical policy covers:
Dwelling Coverage
Dwelling coverage pays to repair or replace the structure of your mobile home if it’s damaged by events that your policy covers. These events typically include:
- Fire and lightning
- Explosions
- Vandalism
- Theft
- Falling objects
- Wind and hail
- Weight of ice and snow
- Damage from wild or stray animals
- Burst pipes
We recommend that you buy enough dwelling coverage to cover the cost to replace your mobile home if it’s completely destroyed.
Personal Property
Personal property coverage typically pays to repair or replace your stuff, including furniture, electronics and other belongings, if they’re damaged or stolen in a covered event.
For example, let’s say your newish leather sofa is ruined by water from a burst pipe. Or your new laptop is stolen by a burglar. Since burst pipes and theft are both covered events, your insurance company would kick in here to help (after you pay your deductible, of course).
Keep in mind, though, that standard mobile home insurance policies cover your stuff on an actual cash value basis. Actual cash value means they’ll pay the replacement cost of your couch or laptop minus depreciation (wear and tear). But hey, getting some cash back is better than nothing.
Liability
Liability insurance pays out if a visitor is hurt on your property and sues you.
For example, let’s say your neighbor is visiting and is injured by a tree falling on your property. If that neighbor sues you and you have liability insurance, your insurance company would cover legal defense and medical fees up to your coverage limit.
It’s completely up to you to decide how much liability insurance you want to carry. Consider getting enough to at least cover your net worth. Worst case scenario is that someone sues you for everything you own.
Protect your home and your budget with the right coverage!
Here’s a tip. Every mobile home insurance policy can be tailored to fit each homeowner’s needs. Maybe you want to make sure your carport is included in your policy. Or maybe you’re curious about additional living expenses if your home is so damaged that you have to live elsewhere while it’s being repaired.
Whatever your needs are, talk to an insurance agent to learn more about how you can customize your policy.
What Doesn’t Mobile Home Insurance Cover?
To successfully customize your policy, you should know what standard mobile home insurance doesn’t cover:
- Flooding. If you live in a flood zone or are at a high risk for flooding, you need to buy separate flood insurance.
- Earthquakes. Most mobile home insurance policies don’t cover earthquake damage. If your home is in an area with frequent seismic activity, buy separate earthquake coverage.
- Wear and tear. Generally speaking, mobile home insurance covers sudden accidental damage, not everyday maintenance. Remember that leather sofa we mentioned? Even though leather usually looks better when it’s worn in, insurance companies just consider it used.
- Insect or animal infestation. Most homeowners know that regular home maintenance chores include cleaning out hidden areas where critters like to live. Insurance companies know this too and typically won’t cover any damage caused by critters.
The more you know about what mobile home insurance does and doesn’t cover, the better you’ll be able to tell your agent exactly what you want.
How Much Is Mobile Home Insurance?
The cost of mobile home insurance is affected by factors like the age and condition of your mobile home, your deductible, your claims history, and location. However, if you’re looking for a specific number, the average cost ranges from a few hundred dollars per year up to around $1,000. That’s a small price to pay for financial peace of mind.
More good news. You can determine the price of your mobile home insurance by adjusting the coverage limits. The best way to do that is to work with one of our Endorsed Local Providers (ELPs) who can tell you exactly how to customize your policy and how much it’s going to cost.
Do You Need Mobile Home Insurance?
Like we mentioned before, mobile home insurance is a must if you don’t have the money to repair or replace your home in case of a natural disaster or cover losses from a lawsuit. Or both!
While it’s not required by law, it is typically required by mortgage companies and mobile home communities.
Get the Right Mobile Home Insurance
Instead of spending hours online comparing prices and getting a flurry of marketing emails from random insurance companies, the smartest way to find the right mobile home insurance policy is to reach out to one of our Endorsed Local Providers (ELPs) in your area.
All of our ELPs are independent agents. That’s a big deal. It means that instead of being tied to one agency’s product, our ELPs can shop around for you to find the right policy and the best price for your situation.
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Ramsey Solutions