Mobile Home Insurance Explained

Mobile home insurance provides coverage for your home and your personal possessions and also includes personal liability protection. Here we’ll explain how that works, how much coverage you need, and what you can expect to pay.

Mobile home insurance

You want to protect everything that’s important to you, and that includes where you live, what you own, and your hard-earned money. That’s true whether your home was built where it is or delivered.

What Mobile Home Insurance Covers

Mobile home insurance pays to repair or replace your home and belongings. It also pays for the medical bills of injured guests and your legal fees. Here’s how the different portions of a comprehensive mobile home insurance policy work to safeguard you if the unexpected happens.

Dwelling coverage

This pays to fix or replace your home. Dwelling coverage pays up to your policy limits if your mobile home is damaged by fire, smoke, wind, hail, heavy rainfall, the weight of ice and snow, falling objects, burst pipes, lightning, explosions, or vandalism. In addition to the structure of your home, dwelling coverage for mobile homes usually covers:

  • Attached structures
  • Steps
  • Oil and gas drums
  • Tanks
  • Materials and supplies used in the construction or repair of the mobile home
  • Wall-to-wall carpeting
  • Other structures separated from the mobile home such as a fence
Personal property coverage

This coverage pays out if your personal items are damaged or stolen. There are limits to personal property coverage, so you may need to buy extra coverage if you have high-value items you want to insure.

Personal liability coverage

Liability mobile home insurance can pay for lawsuit claims filed against you for accidental injuries or property damage you do to other people. It also pays for the medical expenses of guests injured in your home. For instance, If your friend slips on your wet kitchen floor and hits his head on your counter, your liability coverage could help pay the hospital bills. If your friend sues you, it would also pay for your legal defense and any settlements or court judgments.

Medical payments coverage

This coverage pays the smaller medical bills of people who are accidentally hurt on your property, regardless of fault. It’s usually capped at $5,000 so it can be used for minor injuries that result in small medical bills. This way guests are less likely to sue you for minor incidents.

How Much Mobile Home Insurance Do I Need?

Dwelling amount

You want to get dwelling coverage in the amount equal to what it would cost to rebuild or replace your mobile home with comparable materials. Or, at least you should get as much as you can afford.

If you file a claim, your insurer will reimburse you only up to the limits in your policy. Depending on your policy, you will either be paid the actual cash value, replacement cost, or an agreed-upon value of your mobile home.

Replacement cost coverage is better than actual cash value. With replacement costs, you get the amount of money needed to rebuild your home with equitable materials without deductions for depreciation. Note that not all insurance companies offer replacement value for mobile homes.

Actual cash value takes into account your mobile home’s depreciation and thus would pay out less if your home is destroyed.

An agreed lost settlement amount is the amount of coverage you and your insurer agree to when your policy is drafted. You’re guaranteed to get that amount in the event of a total loss.

Personal property amount

The coverage amount for your belongings is usually set between 50% to 70% of your dwelling coverage amount. For example, if your mobile home is insured for $90,000, and your personal property coverage is set at 50%, you’ll have $45,000 in contents coverage. You can buy extra protection for high-value possessions if you want.

Liability amount

Generally, you want a liability insurance amount that matches what you could lose in a lawsuit. In a worst-case scenario, if you face a big lawsuit, you don’t want to have inadequate liability coverage.

Other Types of Mobile Home Insurance

Additional living expenses coverage will pay for your living expenses when you are unable to live in your mobile home while it’s being repaired.

Emergency removal expense coverage pays for the cost of removing the damaged property from your mobile home.

Trip/transportation coverage provides your mobile home with collision coverage when it’s being transported to another location.

Breakdown protection is coverage that includes the repair or replacement of major appliances and electronics in your mobile home when the breakdown of these items is due to mechanical or electrical failures.

Identity theft recovery insurance provides help if you are a victim of identity theft including expense reimbursement, such as $15,000.

Damage Not Covered by Mobile Home Insurance

Insurance coverage is designed to protect you from accidents and the unexpected. But no insurance policy covers everything, and mobile home insurance is no exception.

The following types of damage are not generally covered in mobile home insurance policies:

  • Water damage from sewers and drain backups
  • Wear and tear
  • Scratching
  • Deterioration
  • Rust
  • Mold
  • Wet or dry rot
  • Contamination
  • Smog
  • Vermin
  • Rodents
  • Insects

Mobile Home Insurance Costs

There are several factors that can affect the price of mobile home insurance:

  • Location
  • Size of the mobile home
  • Value of your personal property
  • Other insured structures
  • Age of the mobile home
  • Insurance coverages you choose
  • Your credit history
  • If you own the land underneath the mobile home
  • Materials used to build the home
  • Discounts, such as discounts for safety and security features

According to Farmers Insurance, the cost of a basic mobile home policy in non-coastal states ranges from about $490 to $800 per year.

How to Buy Mobile Home Insurance

Compare quotes. After you determine how much coverage you need, compare quotes for identical coverage limits from multiple insurers. Try to find a policy with a replacement value.

Ask for discounts and special coverages. Be sure to get all the discounts that match your mobile homeowner profile. For instance, if you pay in advance in a lump sum, pay electronically or install safety or security devices, you might qualify for price breaks. Additionally, some insurers allow you to buy extra benefits, like coverage that would replace the siding of the home if a portion gets damaged.

Research customer satisfaction. Don’t choose a company on price alone. You want your insurer to be responsive and helpful with claims. Many of the best home insurance companies also sell mobile home insurance.