Mobile Home Insurance: Coverage, Costs, and Caveats

Questions, answered 

• When do you need mobile home insurance?

• What does mobile home insurance cover?

• Which insurers offer mobile home coverage?

You can buy a brand-new mobile home for less than $80,000, on average.¹ That's an efficient price point for a home, but still a sizable purchase -- large enough to warrant insurance coverage. 

Fortunately, mobile home insurance is usually easy to find. These policies are like standard homeowners insurance; they cover the home's structure, your personal belongings, and throw in some liability coverage, too. 

Here's an overview of how mobile home insurance works, including what it covers, what it costs, and where to find it.

Mobile vs. manufactured home insurance

As you're shopping for rates, you will see references to mobile home insurance and manufactured home insurance. Technically, mobile homes and manufactured homes are different things -- but people (including me and, probably, you) use the terms interchangeably. 

Here's the distinction. If your home was built after 1976, it's a manufactured home. In that case, you technically need manufactured home insurance. If your home was built before 1976, it's a mobile home. The insurers listed below will all write policies for manufactured homes, though they may not cover pre-1976 mobile homes.

When do you need mobile home insurance? 

To begin, let's tackle the question of need. You need mobile home insurance in these three situations:

You financed the purchase of your mobile home.

Your lender will require mobile home insurance, with dwelling coverage that's more than your opening loan balance. 

Your mobile home park requires insurance.

Parks often request proof of insurance before you move in. 

The value of the home exceeds your cash savings and the home was built after 1976.

If catastrophic damage to the home would leave you in a bind, you need the financial protections of insurance. The caveat here is that it's hard to get insurance for pre-1976 mobile homes. 1976 is a cut-off year, because that's when the feds implemented building codes for factory-built homes.

What does mobile home insurance cover?

Mobile home insurance typically offers these types of coverage: dwelling, other structures, personal property, liability and/or guest medical protection, and additional living expenses.² 

1. Dwelling coverage 

Dwelling coverage pays to repair your home after damage resulting from covered events. A "named perils" policy lists these covered events. An "open perils" policy lists events that are not covered. The open perils policy provides broader coverage because it protects you against any event that's not defined as an exclusion. 

The types of events you'd expect your mobile home insurance to cover include: 

• Fire and smoke 

• Wind, hail, rainfall, ice, snow, and lightning

• Falling objects, including trees 

• Explosions not caused by owner neglect  

• Vandalism

The policy's dwelling coverage will have a maximum dollar limit. Your insurer may base the limit on the home's actual cash value, its replacement cost, or an agreed-upon amount.³ Here's how these differ: 

• Actual cash value is the market value of the home. This will be lower than the cost of replacing the home because it includes depreciation.

• Replacement cost is the amount you'd need to buy a new home of similar quality. 

• An agreed-upon amount is a flat dollar amount, like $50,000 or $70,000. If you go this route, make sure the amount is high enough to fund a new living arrangement if the home is damaged beyond repair. 

2. Other structures 

Mobile home insurance also normally includes coverage for other structures, like fencing, detached garages, or sheds. The policy will list a separate, smaller dollar limit for those, but the covered perils should be the same.

3. Personal property 

Personal property includes movable items like electronics and furniture. This coverage also has a separate dollar limit plus its own exclusions. Often, you must buy additional coverage to include high-dollar items like jewelry or collectibles. 

4. Personal liability 

Personal liability insurance pays for damage you cause to someone else's property or person. If your daughter kicks a soccer ball through a neighbor's window, personal liability should cover the cost of the repair. If your neighbor trips on a toy you left on the floor, the liability should fund the resulting medical costs.

As with the other types of coverage, your policy will state a maximum dollar amount for personal liability.

5. Guest medical protection 

Guest medical protection pays medical costs (up to a stated limit) when someone is injured in your home, regardless of who is at fault.⁴ This coverage will not apply to you or family members who live at the property -- only your visitors. 

6. Living expenses 

If you cannot live in your home after a covered peril, your insurer will pay up to the policy's limit to live elsewhere.

Mobile home insurance vs. standard homeowners insurance 

Mobile home insurance is similar to standard homeowners insurance. Both provide the same types of protections, though mobile home insurance generally has lower caps on those protections.

Is it expensive to insure a mobile home? 

Mobile home insurance should not be expensive. Annual premiums can range from $500 up to $1,500. The primary pricing factor is the dwelling coverage limit, but the insurer also uses these data points to set your rates:⁵ 

• Where you live 

• What other structures are on your property

• What coverages you select 

• Your credit history 

• Whether you own the land underneath your home 

• The deductible you choose 

• What discounts you qualify for

Value Penguin reports quotes from Assurance that vary from $1,200 to $1,407 annually. The low end of that range has a dwelling coverage limit of $50,000. At the high end, the dwelling coverage limit is $90,000.⁶

Discounts on mobile home insurance 

Discounts can lower your mobile home insurance premiums substantially. Ask prospective carriers if they offer any of these programs: 

• Bundling discount 

• Safety device discount 

• Electronics statement discount 

• Pay-in-full discount 

If the premiums are still too high after discounts, ask the carrier to quote a higher deductible or a lower dwelling coverage limit (if allowed by your lender). 

Can you customize mobile home insurance?

You can customize your mobile home insurance, by purchasing a rider or a second policy. Here are five examples of optional coverages you may want:

1. Scheduled personal property: Pays to replace high-value, appraised items such as jewelry. 

2. Water backup protection: Pays to repair water damage after a sump pump or drain fails. 

3. Identity theft restoration: Covers legal fees and lost wages if someone steals your identity. 

4. Business property rider: Extends coverage to items you use for business, such as equipment and inventory. Insurers normally exclude business-related items from standard policies. 

5. Flood insurance: Pays to remediate water damage after a heavy storm or melting snow. Your lender may require flood insurance on your mobile home, depending on where it's located.

Which insurance companies offer mobile home insurance? 

You can get mobile home insurance from nationwide carriers and specialty carriers. Some carriers to shop are: 

• Allstate

• American Family Insurance 

• Assurance

• Geico 

• Farmers 

• Foremost 

• Liberty Mutual

• Progressive 

• State Farm 

Protection provides peace of mind 

Without insurance on your mobile or manufactured home, you're one bad fire away from homelessness. With insurance, you have financial protections in place, should something terrible happen. You also have the peace of mind that comes with those protections -- which may be worth the policy cost all on its own.