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October 24, 2022

Mobile Home Insurance: Considerations to Make

When shopping for your mobile home, insurance is one of the first considerations you should make. Mobile home insurance, also known as manufactured home insurance, is similar to a standard homeowners insurance policy because it provides financial protection from housing damage. While it’s not required by law, mortgage companies and mobile home communities may require coverage.

Where Can I Find Insurance?

Searching for quotes can be difficult because we often have to speak to an agent first. For example, State Farm and Allstate are two of the nation’s largest homeowners insurance companies that do not have an online quote feature. Geico home insurance and Progressive mobile home insurance offer online quotes. Getting several quotes is helpful to make sure you get the most affordable rate for your budget.

The insurance cost largely depends on the insured home’s area, age, and coverage limits. Comparing quotes is the best way to find affordable mobile home insurance. If you’re having trouble finding quotes online, consider contacting an independent agent in your area. 

Do I Need Mobile Home Insurance?

Technically, it is not required by law. However, your mortgage company may require you to get it, so if you intend to take out a mobile home loan, it is best to assume you need insurance. 

Beyond meeting the requirements for a loan, insurance is also the best way to protect your investment. The average cost of a new manufactured is $92,600, which is a huge investment for most families. While insurance can be costly, forgoing coverage means putting yourself at risk of a large financial loss.

What Does Manufactured Home Insurance Cover?

Mobile home insurance includes all of the coverage a homeowners insurance policy provides for a stick-built home, including protections for your dwelling and property. Manufactured home insurance provides coverage for the policyholder’s home and belongings and includes liability protection.

Insurance companies allow policyholders to customize their policies through endorsements, which supplement a standard policy. Endorsements provide coverage that doesn’t come with a typical homeowners insurance policy, such as debris removal and sewer water damage.

Manufactured homes are prone to damage by fire. Check whether your policy covers this peril. Policyholders can also set unique coverage limits. Here are the main coverages offered by homeowners insurance for mobile homes.

  • Dwelling Coverage: This coverage helps pay to rebuild or repair the physical structure of your home if a covered peril damages it. For example, if a fire causes a wall in your mobile home to collapse, it would fall under dwelling coverage. Other structures covered under dwelling coverage include your roof and a deck attached to your mobile home.
  • Personal Property: Mobile home insurance protects your personal belongings, whether damaged or stolen. For example, you will be covered if someone breaks into your mobile home and steals your laptop. Remember that you would have to pay a deductible to make a claim.
  • Liability Protection: This coverage protects you if someone is injured on your property. For example, you could be liable if a falling tree branch strikes your neighbor on your property. With this coverage, your insurance company would cover legal defense fees and can pay damages if you’re liable. Your insurance company would only offer financial protection up to your coverage limit.
  • Other Structures: Mobile home insurance policies often include coverage for permanent structures that aren’t permanently attached to your home, like a garage or a tool shed.
  • Additional Living Expenses: If you cannot live in your home due to a covered loss, this coverage provides you with compensation for additional expenses while living elsewhere. For instance, if there’s a fire in your mobile home, your insurance company would pay for the cost of a hotel up to your coverage limit.

We hope this blog helped you learn more about mobile home insurance. If you are shopping for a manufactured home, we would love to help you. Contact us to get in touch with one of our Housing Consultants today!