Living in a mobile home is less expensive than a townhouse or single-family dwellings, but it does come with some risk that you should insure against. Mobile and manufactured homes, sometimes referred to as trailers, are lighter in weight and less securely anchored to foundations than permanently fixed houses. That makes them more vulnerable to wind, hail, and fire.
Nonetheless, mobile and manufactured homes are popular due to their speed of construction, cost, and flexibility of location. You can get what you want, where you want, when you want at a preferred price point. But insuring a mobile or manufactured home is a little more complicated than standard homeowners insurance for a site-built property. Here are the important coverages for mobile homes and manufactured homes, whether situated on a property you own or in a trailer park.
Property Insurance for Mobile & Manufactured Homes
Many people refer to trailers, mobile homes and manufactured homes interchangeably, but they are actually different types of dwellings. Here are some helpful definitions:
- A trailer is a wheeled attachment that is hauled by a tow vehicle. It can be used as a residence, but it isn’t fixed to a foundation.
- A mobile home is a factory-built residence made before mid-1976. It is hauled to a location and set upon the ground or blocks, possibly strapped or anchored to a slab, piers, or other foundation. It has a permanent chassis and was manufactured before U.S. Housing and Urban Development (HUD) building codes were established.
- A manufactured home is a structure built to HUD code in a factory after mid-1976. It is transported to a semi-permanent or permanent site and can be strapped, tied, or anchored to some kind of foundation. It also has a permanent chassis. A manufactured home is considerably stronger than a true mobile home, and modern manufactured homes typically have I-beam frames that support floor joists and stabilize the structure. Manufactured homes can also be combined as sections, creating larger living spaces as well as garages. They also come with options for walls that accommodate thicker insulation, high ceilings, and high-end fixtures.
Even though marketing sites list mobile and manufactured home insurance together, they are different products, so it’s important to know which type of home you have.
Securing Coverage for Mobile Homes
Getting insurance for a mobile home is often very difficult, and many insurance companies won’t cover them. If you can’t find insurance in the standard market, you might need to go to the specialty market or a state “last-resort” plan. Your insurance agent can help you navigate those markets. Things that put your mobile home at higher risk (and reduced insurability) include being set on blocks instead of anchored to a slab, being in a rural setting, and being in a wind- or hail-prone region. Insurers that will cover a mobile home may have clauses in their policies that exclude or significantly diminish dollar coverage for certain perils, so check exclusions and sub-limits carefully. Note that you might not be able to get replacement cost coverage for a mobile home, which means your coverage for a total loss will reduce what you receive from a claim by the depreciation your mobile home has suffered over time.
Insurers are more likely to offer manufactured home insurance because of the upgraded construction quality and younger age of the dwelling. You can find agreed-value insurance for total losses with actual cash value coverage for partial damage.
In general, mobile home and manufactured home policies cover the dwelling and its contents, and they may insure other structures, such as a garage, as well as the cost to stay elsewhere (like a hotel) if your home is damaged in a covered loss. Perils typically include fire, wind, hail, lightning, water damage from intrusion or burst pipes, explosion, theft, and vandalism. Flood and earthquake usually require a separate policy or at least a rider on your home insurance, depending on where you live.
If your mobile or manufactured home is a seasonal property, ask about unoccupied dwelling and vacant home insurance. One of those coverages will likely apply to your style of use and give you protection while you are not at your secondary property.
If you plan to rent your mobile home out for an extended time period, it qualifies as a business use of the property, and you will need landlord insurance. This will provide coverage for property damage and possibly lost rental income while the mobile home is being repaired. If you are planning on short-term rentals like a bed-and-breakfast you may be able to use a “home sharing” endorsement to your current mobile home policy. Also, be sure to have the renter take out their own renters insurance policy to protect their belongings and to provide liability coverage.
Typically, mobile homes are part of a community that has a Homeowners Association (HOA), which assesses members when incidents occur. For example, if a storm damaged the community’s roads and community center, and the HOA assessed each member $7,000, the mobile home’s “Loss Assessment” provision will pay for the HOA assessment up to the policy limits. This can help save you from a large, unexpected bill.
Moving your mobile or manufactured home is an intricate process that could entail a need for special insurance, such as trip collision coverage, which insures the home for crash damage while it’s being moved.
Liability Insurance for Mobile & Manufactured Homes
Personal liability insurance is the same for mobile and manufactured homeowners as it is for stick-built homeowners. It covers injuries to others that occur on your property, such as a fall down your stairs or a slip on your kitchen floor that results in a broken bone or other harm.
If you rent space for your home in a mobile home park, you should speak with your insurance agent about liability issues. If you have a fire in your home and it damages the park or the property of your neighbors, you could be held responsible for costs. Many trailer parks and mobile or manufactured home parks require tenants to carry specific coverage for damage done to the park and its equipment. Your liability insurance might have an exclusion for property in your care, custody or control, which could include the pad or utility hookups. Your agent can review your lease contract for potential liability and indemnity requirements and suggest solutions.
An Insurance Agent is a Valuable Aid
A manufactured or mobile home can be a way to simplify living, but the process of insuring it can be filled with questions. A knowledgeable independent insurance agent can present you with insurance choices that fit your needs and budget. Find an agent near you.