What does a mobile home insurance policy cover?
Last updated: January 1
Although manufactured homes, once commonly referred to as mobile homes, are built in a factory and moved to a chosen location, they aren't much different than a site-built single-family home — even when it comes to insurance. Whether you live there year-round or seasonally, it's important to help protect your home with mobile home insurance.
What does mobile home insurance cover?
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 and contents:
If your mobile home or its contents sustain physical damage from perils such as fire, hail, theft or vandalism, the costs of repairs or replacement are typically covered by a mobile home policy. Additional structures on your lot, such as a patio or garage, and your personal belongings would also likely be covered. However, some policies only cover certain causes of loss. These "named perils" policies may have lower premiums, but be sure to check with your agent so that you know what is excluded from your policy.
Liability:
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.
Does mobile home insurance cover water leaks?
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.
Other considerations
The coverage limits in a mobile home policy are frequently 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.
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.