What does a mobile home insurance policy cover?

Mobile home insurance — also called manufactured home insurance — is a type of coverage that protects you financially if your home or personal belongings are damaged by a covered incident. Generally, mobile or manufactured home insurance can protect you, your loved ones, your belongings and your property from events like fire, wind, hail, or theft. While water damage might be covered in certain instances, mobile home insurance doesn’t typically cover floods or water backing up from sewers or drains.

Additionally, manufactured home insurance coverage can protect you in the event someone files an insurance claim or lawsuit against you after being injured at your home. It can also cover you if you inadvertently damage another individual’s property.

Insurance coverage for mobile and manufactured homes is usually similar to a standard homeowners policy, offering coverage for the home, your personal property and liability claims. The two basic coverages typically included in mobile home insurance policies are for physical damage and personal liability, the Insurance Information Institute (III) says.

Physical structure

When a covered incident damages the physical structure of your home, your coverage helps pay for necessary repairs or replacement. For example, if hail damages your roof during a severe thunderstorm, your policy may help pay to repair or replace it.

Personal property

If your furniture, TVs, clothes or laptop are damaged by a covered incident, your manufactured home policy has your back because it provides financial protection for these prized possessions. However, it is worth noting that some items, like expensive jewelry, may not be covered at their full value by default. So, it can be wise to double-check specific valuables are covered instead of making assumptions and hoping.

Liability protection

Mobile home policies typically include liability coverage, which may help protect you (within the stated policy limits) if you or someone in your household is found liable for damage to someone else's property or if a guest is injured at your home. However, liability coverage generally does not cover an injury to you or another member of your household, the III says. If you slip on your steps, you likely won't be reimbursed for any medical expenses. If your kids accidentally break the neighbor's window playing ball, however, your policy will likely cover the cost of repair.

Additional structures

Other structures — like attached decks or patios, sheds and garages — are generally covered, according to the III. However, the amount and degree of coverage can vary depending on the details of the policy.

Loss of use

The right insurance can help protect you financially if your home becomes uninhabitable due to damage from a covered peril. When you’re forced to stay somewhere else, the Wisconsin Office of the Commissioner of Insurance notes that some policies may reimburse you for these additional living expenses.

Mobile home insurance may cover water leaks in certain situations. For instance, if a frozen pipe suddenly bursts, insurance may help pay for repairs to your mobile home or its contents. However, you'll likely find that your policy does not cover damage caused by a burst pipe or water leaks if they are the result of a lack of maintenance. For example, suppose your mobile home is vacant and heat is not appropriately maintained, resulting in a burst pipe, or you neglect to repair a leaky pipe. Mobile home insurance probably would not provide coverage for resulting damage in those situations.

The III notes that most mobile home insurance does not include coverage for flooding. You may be able to purchase a separate flood insurance policy through the National Flood Insurance Program (NFIP).

The coverage limits in a mobile home policy are generally based on replacement cost, actual cash value or a stated amount (which means there is a maximum amount you'll receive if your home is destroyed), the III says. The III suggests reviewing a stated amount policy (also called an agreed value policy) annually, as you may want to adjust your policy based on current mobile home values. Most mobile home policies tend to use actual cash value, according to the Wisconsin Office of the Commissioner of Insurance.

Also, the III notes, most standard mobile home insurance policies don't provide coverage while the home is in transit.

When contacting your agent about mobile home insurance (not all insurance companies offer it), be sure to ask if any discounts are available. If you already have other coverage with the insurer, such as auto or life insurance, you may be eligible for a multi-policy discount. You may also want to ask whether any optional coverages are available, which may be recommended based on where you live or to expand your existing coverage.

The cost of mobile or manufactured home insurance depends on multiple factors, including but not limited to:

• The home’s age and condition
• Coverage selections and limits
• Location and the risk of disasters in that area
• Your claims history
• The value of your belongings

If you’re looking for a general expectation of what you might pay, Realtor says the average annual premium ranges from $700 to $1,500, and in certain high risk areas, that number can increase significantly.