Is Homeowners Insurance Mandatory For Mobile Homes?

Is homeowners insurance mandatory for mobile homes
Mobile home insurance is very similar to homeowners insurance. Find out here everything you need to know about mobile home insurance and whether you need it.

Mobile home insurance is very similar to homeowners insurance. Find out here everything you need to know about mobile home insurance and whether you need it.

Mobile homes have seen an increase in demand over the past decade, with approximately 22 million currently living in this type of dwelling across the U.S. 

Unlike a home built on-site, mobile homes are pre-assembled in factories. Then, they are transported to the location where they’ll be lived in. One of the most significant benefits of a mobile home is the price. They are cheaper than site-built homes, often saving you tens of thousands of dollars.

Mobile home insurance covers the home itself, your personal property, and also liability claims. Many mortgage companies and mobile home communities often require that you have insurance coverage.

Keep reading to learn more about what mobile home insurance is and what it covers, whether it’s required by the law, and if you should invest in a policy.

Do you need homeowners insurance for a mobile home?

If you’ve come across a mobile home for sale and are considering buying, you might be asking yourself whether you’ll need to also purchase insurance for it.

Mobile home insurance requirement

While you aren’t obligated by law to have mobile home insurance, you’ll likely still want it.

For one, most mortgage companies you’ll go through to buy a mobile home will require insurance to be purchased.

Second, if you plan to live within a mobile home community, many of these require coverage to stay there.

Take a travel trailer, for example. Because the travel trailer isn’t actually being driven and is instead being towed, you aren’t required by law to have insurance. However, your travel trailer is still at risk for being damaged and without coverage, you’ll be stuck with all out-of-pocket expenses. That’s why most people believe it is wisest to opt for travel trailer insurance.

The average sale price of a mobile home is around $88,200. While that’s far lower than the state average of $131,837 in Arkansas for a traditional single-family house, it also isn’t a price tag you can ignore with ease.

mobile home fire insurance arkansas

Therefore, it is recommended you purchase a policy that will protect you against financial hardship should your home and belongings be damaged.

What about modular homes?

Again, buying insurance for your modular home is a personal decision. However, it is in your best interest to find a policy that will protect your home and belongings.

Typically, you will be able to purchase a standard homeowners insurance policy for your modular home. This is because there aren’t any risks specific to modular homes.

What does my mobile homeowners policy cover?

Mobile home insurance is similar to traditional homeowners insurance. That means you can customize what’s included in your policy.

A basic policy will typically cover:

Physical Damage — Should accidental damage occur to your home and other permanent structures, this coverage will pay for the costs. The degree to which you are covered and the amount you will pay varies from one policy to another. 

Personal Liability — This type of coverage is meant to offer protection if a person is injured on your property and you’re held liable. It is meant to help with legal fees and medical costs.

Additional policy options include:

Personal Property — Coverage for your personal belongings. Should items you own be damaged or stolen, your policy will protect you.

Additional Living Expenses — When your home suffers damage that’s covered by your physical damage policy and forces you to temporarily live elsewhere, this coverage is meant to help with things such as rent and hotel costs.

Peril Policies — This type of coverage has low premiums but high risk. You have limited coverage, meaning if your mobile home suffers damage not included in the listed perils, you’ll be on the hook for costs.

So, take mobile home skirting as an example. If the skirting is damaged due to flooding, your standard policy won’t cover this because flood damage is considered speciality coverage. However, if the skirting is damaged due to a reason listed under physical damage, then your policy will protect you.

Why is mobile home insurance more expensive?

The cost of mobile home insurance is often higher than standard homeowners insurance because of the higher risk that’s associated with owning a mobile home. Mobile homes have a reduced ability to withstand incidents like floods and fires. They are also at higher risk for theft and vandalism.

mp insurance mobile home insurance cost factors infographic

The amount you’ll pay for your mobile home insurance will vary depending on numerous factors. The different factors that determine the cost of mobile home insurance include:

  • The value of the mobile home
  • The foundation
  • The size of the home
  • The state you live in
  • The presence of security features and safety devices
  • Weather conditions and risks unique to your location
  • The year of construction
  • The amount of coverage
  • The deductible

Why you should choose M&P Insurance for your mobile home?

The people at M&P Insurance are homeowners who live alongside you in Newport, Arkansas. Since M&P Insurance is local, they have access to many carriers that will offer you the best and most appropriate coverage you need.

M&P Insurance will work hard for you, discussing in great detail any exposures you might face and help to guide you through the decision of what policies to opt for that fit your needs.

Contact M&P Insurance today to discuss your policy options.

Frequently Asked Questions

What is the difference between a mobile and modular home?

The terms “mobile” and “manufactured” and “modular” are sometimes used interchangeably, but there are important differences. The U.S. Department of Housing and Urban Development (HUD) states that a factory-built home constructed before June 15, 1976, is a mobile home. If it was built after this date, then it is called a manufactured home.

A manufactured home has its mobile home parts assembled in a factory. They are built to federal code. While both manufactured and modular homes are a type of mobile home, both vary slightly. A modular home is also built in a factory like a manufactured home, however it must meet local state building codes. Modular homes are also built on either a permanent chassis or a one that is temporary.

What does renter’s insurance cover?

Even if your landlord doesn’t require you to have a policy, you should still consider getting renters insurance. Mobile home renters insurance functions the same as other renters insurance policies. Renters insurance will protect your belongings at the cost of a monthly rate. Just like your landlord must have apartment building insurance, so too should you protect yourself with coverage.

Will a current homeowners insurance policy cover a mobile home?

If you already have a homeowners insurance policy, it will not be able to be applied to any mobile home your buy later on. Mobile home insurance is a speciality insurance.