Why is mobile home insurance so expensive?

Mobile homes are built of lighter materials and are more susceptible to wind and fire damage than stick-built homes, making them higher risk for insurers.

What is an HO-7 Policy?

HO-7 is the specific insurance form for manufactured or mobile homes. It functions similarly to a standard home policy but accounts for the unique construction type.

Is flood coverage included?

No. Flood damage is almost always excluded. You must buy a separate flood policy, which is highly recommended for mobile homes.

Mobile Home Insurance: Costs & Coverage Explained

Manufactured homes are an affordable way to own your own space, but insuring them can be surprisingly costly. Here is everything you need to know about getting the right coverage at the right price.

First, let's clarify the terminology. Whether you call it a "mobile home," "trailer," or "manufactured housing," if it was built in a factory and towed to the site, you need an HO-7 Policy.

Why Is It More Expensive?

Many people assume that because a mobile home costs less than a traditional house, the insurance should be cheaper too. Often, the opposite is true.

Wind Risk

Mobile homes are lighter and often not anchored as securely as foundation-built homes. A windstorm that tears a few shingles off a regular house might destroy a mobile home completely.

Fire Risk

Once a fire starts in a mobile home, it tends to spread faster due to construction materials and airflow, leading to more "total loss" claims.

HO-7 Coverage Breakdown

A standard manufactured home policy covers:

Dwelling: The home itself.
Other Structures: Garages, sheds, or gazebos.
Personal Property: Your furniture and clothes.
Liability: Legal protection if someone gets hurt on your lot.

Actual Cash Value vs. Replacement Cost

This is the single most important decision you will make.

1. Actual Cash Value (ACV)

Most basic mobile home policies are ACV. This means they pay you what the home is currently worth (depreciated). Since mobile homes depreciate like cars, a 20-year-old home might only be "worth" $10,000, even if it costs $80,000 to buy a new one. Avoid this if possible.

2. Replacement Cost

This pays to buy a brand new mobile home of similar quality, regardless of how old yours was. It costs a bit more, but it is the only way to ensure you aren't left homeless after a disaster.

Average Costs

The national average for mobile home insurance is between $600 and $1,400 per year.

However, in states like Florida, Louisiana, or Texas, rates can easily exceed $2,500 due to hurricane risk.

Conclusion

Owning a manufactured home offers freedom and affordability. Just make sure you protect that investment with a "Replacement Cost" policy so you can rebuild if the worst happens.

Frequently Asked Questions

Does it cover the wheels? expand_more

Typically, no. Once the home is set on the site coverage applies to the structure. If you move the home, you need special "trip collision" coverage for the move itself.