Does homeowners insurance cover mobile and manufactured homes?

August 19, 2020

Learn how homeowners insurance can help you protect your mobile or manufactured home

A mobile or manufactured home covered by homeowners insurance

Most homes never travel very far during their lifetimes, and usually that's a good thing. However, if you've decided to purchase a manufactured or mobile home, there's a good chance your home will have had at least one road trip under its belt before coming to rest at its final location. Mobile and manufactured homes can be an affordable alternative to standard housing options, but they carry with them their own set of unique risks. Regardless of their affordability, they're still a big investment that you'll want to protect. But does homeowners insurance cover mobile and manufactured homes? We'll lay out all the details, so read on!

What is meant by a mobile or manufactured home? 

Have you ever been surprised to see an entire house on the back of an 18-wheeler driving down the highway? It's a strange sight, and it can often cause a fair bit of traffic. However, what you've witnessed was more than likely a new mobile or manufactured home on its way to its new owners!

These homes are often affordable housing options and are built in a manufacturing facility. However, because of the materials and processes used to create such a home, they can often present a unique set of challenges when shopping for insurance. 

A traditional home is usually made by first pouring a concrete foundation on top of which the rest of the home is built. Mobile and manufactured homes often do not have foundations like this, and may instead be fastened or anchored to the ground by other means. 

The lack of a foundation is one of the factors that can make a manufactured home more affordable and mobile, but can often lack certain structural strengths that come with the support of a foundation. 

Are you required by law to have insurance for a mobile or manufactured home? 

While there are no laws in Texas that explicitly require you to purchase insurance for a mobile or manufactured home, there are plenty of reasons to do so. 

First, if you've taken out a loan or mortgage to purchase your home, mortgage companies and lenders will likely require it. This is often the case in any circumstance where you borrow money to purchase property, like a mortgage for a standard house or an auto loan. 

Furthermore, if you're planning to place your manufactured or mobile home in a community of similar houses, the community may require insurance, too.

Last, but certainly not least, insurance is an important purchase because it protects your investment, even if mobile and manufactured homes don't usually cost as much as a traditional house.

How does insurance work with mobile and manufactured homes? 

Like standard homeowners insurance, insurance for mobile and manufactured homes can usually be broken down into several parts. 

Dwelling and personal property coverage

The portion of a homeowners insurance policy that covers the actual house is called "Dwelling Coverage." Just like standard homeowners or home insurance, this protects your mobile or manufactured home from certain perils or causes of loss, such as a fire or hail storm. However, all property insurance policies have limits to the causes of loss they cover, and they could be different for mobile or manufactured homes. That's why it's so important to discuss coverage with your insurance provider or agent. 

It is also possible that an insurance provider will have certain restrictions in regards to a mobile or manufactured home. For example, if you purchase a mobile or manufactured home that is over 20 years old, a provider may decline coverage, or possibly require a detailed inspection beforehand. Furthermore, as your home ages, your insurance provider may require such inspections to evaluate its condition before renewing an already existing policy.

Coverage limit options for mobile and manufactured homes may be based on replacement cost or actual cash value. Replacement cost means that the policy pays the policyholder the amount required to replace the unit, regardless of depreciation. Actual cash value pays the policyholder the value of the property after calculating for depreciation. The specifics of your policy will depend on a variety of factors, as well as the specific terms of your policy, so make sure to discuss this with your agent or provider.

Liability insurance

Liability protection is meant to protects you from claims of bodily injury that occur on your property. For example, if a guest slips and injures themselves on your stairs, they could potentially hold you liable for medical expenses and damages. Liability insurance often pays for medical expenses, but can also cover court fees if a lawsuit is brought on.

While liability insurance is often combined with dwelling coverage in a standard homeowners insurance policy, some insurance companies offer the two as separate policies. The same is true when purchasing insurance for mobile and manufactured homes.

Other buildings coverage

This refers to coverage for other buildings that may be on your property, but are not attached to or part of the home itself. This may be a separate garage, a workshop, solar panels, a barn, or any other permanent structure that isn't your house. 

Depending on the way your specific policy works, these types of structures may be covered by the property policy, but not always. However, if they are not covered by the base policy, endorsements or other additions can be added to ensure those structures or buildings are protected.

Will insurance cover my mobile or manufactured home while its in transit? 

Most of the time, your homeowners insurance will not cover your mobile or manufactured home when it's being shipped or otherwise transported from the manufacturer to your property. 

However, some insurance companies might provide some coverage in the form of an additional endorsement. Again, this is not always the case, and there are likely to be special considerations or limitations, so make sure to ask your provider before assuming coverage. 

Will insurance cover my mobile or manufactured home from floods?

Just like homeowners insurance, insurance for mobile and manufactured homes will not provide protection from floods. However, if you live in an area where you may potentially require flood insurance, you can get coverage through the NFIP (National Flood Insurance Program).

A mobile or manufactured home in transit

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Read more: A mobile home on the move is a sight to behold, but don't let yourself get distracted while driving! Check out our blog and learn more about the most common kinds of distracted driving!

by Geoff Ullrich

About the Author

Geoff Ullrich is a writer and Content Marketing Specialist at Germania Insurance.