The Complete Guide to Manufactured and Mobile Home Insurance

Due to their unique construction and vulnerability to certain weather, such as windstorms, manufactured and mobile homes typically don’t qualify for traditional homeowners insurance. Instead, you need to look into manufactured or mobile home insurance.

Mobile, manufactured and modular homes: What's the difference?

Mobile, manufactured and modular homes have one thing in common: They're built in factories rather than on construction sites. However, they also have some key differences.

For instance, modular homes sit on a foundation similar to traditional houses, unlike mobile and manufactured homes, which both rest on movable chassis. Further, modular homes are subject to the same state and local building codes as traditional houses, while mobile and manufactured homes must meet federal building standards.

The insurance policies may be different, too. Some companies use standard homeowners policies for modular homes rather than manufactured home insurance.

Meanwhile, though the terms are often used interchangeably, "mobile" and "manufactured" homes have specific meanings according to the U.S. Department of Housing and Urban Development. Mobile homes were built prior to 1976, when a new federal law mandated stricter safety standards for their construction. From that point on, these buildings were known as manufactured homes.

» MORE: The best home insurance companies

What mobile home insurance covers

A standard mobile home insurance policy generally features the following coverage.

Dwelling coverage

Dwelling coverage pays to repair or replace the structure of your mobile home if it’s damaged by events your policy covers, up to a limit you choose. (A deductible may apply.) Manufactured home policies generally cover events such as:

• Fire and lightning.

• Explosions.

• Vandalism.

• Falling objects.

• Wind and hail.

• Weight of ice and snow.

• Burst pipes.

When selecting a limit for this part of your policy, you want an amount high enough to replace your mobile home if it’s destroyed. Consider buying extended replacement coverage, which will give you a cushion in case rebuilding costs more than you expect.

Other structures coverage

Other structures coverage pays to repair a fence, shed or other structure that isn’t attached to your home if it’s damaged by an event your policy covers.

Personal property coverage

Personal property coverage pays to repair or replace furniture, electronics and other belongings if they’re damaged or stolen.

A standard mobile home policy will typically cover your items on an “actual cash value” basis. That means it’ll pay the estimated amount your belongings were worth at the time of the claim, minus your deductible. To receive enough to buy brand-new items, you may want to upgrade to replacement cost coverage.

Taking a home inventory is the best way to figure out what your stuff is worth and how much personal property coverage you need. You can get a quick estimate using the calculator below.

Liability insurance

Personal liability insurance pays if a visitor is hurt and sues you, or you accidentally cause property damage or injuries to others. It may also cover related legal expenses.

Not sure how much liability insurance you need? Consider getting at least enough to cover your net worth.

Additional coverage

Depending on your insurance company, your policy may include other coverage, such as:

• Additional living expenses to reimburse the cost of a hotel in case a fire or storm makes your home temporarily unlivable.

• Trip collision coverage to repair your mobile home if it’s damaged while moving between locations.

» MORE: What does home insurance cover?

What’s not covered

As with any insurance policy, there are limits to your coverage:

Flooding. Manufactured home insurance generally doesn't pay for flood damage. If you live in an at-risk area, buying separate flood insurance is a good idea.

Earthquakes. Similarly, if your home is in a seismically active region, you’ll likely need separate earthquake coverage. Home insurance policies typically don't cover “earth movement."

Wear and tear. Insurance covers sudden, accidental damage, not everyday maintenance.

Insect or animal infestation. Insurers consider pest prevention part of ordinary maintenance.

Damage associated with the use of your home for business purposes. For this coverage, you may need a commercial policy.

» MORE: How to choose the best flood insurance

How much is mobile home insurance?

The average cost of mobile home insurance is typically between $750 and $1,600 per year, according to American Modern Insurance Group. Foremost, another manufactured home insurer, puts its average cost at about $1,178 per year.

A slew of factors can affect your specific rates, including:

• Where you live.

• The age of your home.

• The cost to replace your home.

• The limits and coverage options you select.

• Your deductible.

• Your claims history.

Many companies offer discounts on mobile home insurance. For example, you may get a bundling discount for buying mobile home insurance along with another policy such as auto insurance.

Many insurers also offer discounts for having a home security system, smoke alarms or other protective devices.

» MORE: Cost of homeownership calculator

Manufactured and mobile home insurance companies

Not all insurers offer mobile home insurance, but the following providers do, either directly or through a third-party affiliate. An independent agent may be able to help you find other options in your area.

Allstate

Allstate offers standard coverage for your manufactured home and belongings, plus numerous ways to customize your policy. For example, extra coverage is available for valuables, sports equipment or trees and shrubs. You can save up to 5% on your annual premium if you’re the original owner of your home. Those who are over age 55 and retired can get a discount up to 10%.

American Family

Add “diminishing deductible” coverage to an American Family mobile home policy, and your chosen deductible will immediately go down by $100. It’ll continue to drop by another $100 each year you don't make a claim, up to $500. Other add-ons pay for failures to home systems or damage from hidden water leaks.

American Modern

American Modern has focused on mobile homes since its founding in 1949. The company offers optional coverage for expenses due to the breakdown of an HVAC system, major appliances or electronics. You can also get identity theft insurance or earthquake coverage.

Farmers

Options to customize a Farmers manufactured home policy include coverage for earthquakes or floods. The company offers a bundling discount if you combine your mobile home policy with another Farmers policy such as auto, life or umbrella insurance.

Foremost

Now a subsidiary of Farmers, Foremost was originally founded to insure mobile homes. It offers coverage options such as identity fraud management, trip coverage while moving your home, earthquake coverage and insurance for valuables. If you’re an AARP member looking for mobile home insurance, Foremost is the third-party company that will provide it through the membership.

Geico

Geico doesn’t issue mobile or manufactured home policies itself but instead partners with third parties such as Assurant, Foremost and American Modern. If you need to file a claim or change your coverage, you’ll need to work with the partner directly, not Geico. You can add extra coverage for jewelry, sports equipment or musical instruments to a standard policy.

Progressive

Like Geico, Progressive works with third parties to offer mobile home insurance in most states. That means you’ll likely need to contact the third party to change your policy or file a claim. Replacement cost coverage is an optional add-on that ensures you can buy a brand-new mobile home if yours is destroyed. You can also add trip collision coverage to pay for damage during a move.

State Farm

State Farm offers several ways to save on your manufactured home insurance, including discounts for protective devices such as burglar and smoke alarms. You may also be able to save depending on how long you’ve been insured with State Farm or the age of your manufactured home. Add-on options include identity theft coverage and replacement cost coverage for your home and belongings so you can get brand-new stuff if yours is destroyed.

USAA

USAA — which primarily serves active military, veterans and their families — partners with Foremost to offer coverage for mobile, manufactured and tiny homes. People with modular homes should apply for a standard USAA homeowners policy.

» MORE: What to know about buying a manufactured home

How to find the best mobile home insurance

Don’t just choose the cheapest manufactured home policy and call it a day. Here are a few things to consider when comparing quotes from different insurers.

Coverage options

Start by looking at the coverage limits on each quote. Does the least expensive option also offer the smallest amount of coverage? It might leave you underinsured in a disaster. Does one company offer actual cash value coverage while another will pay enough to replace your home and belongings with brand-new versions? The latter may offer more value even if it costs a little more.

You can also check which types of optional coverage are available. For example, if you’re hoping to add equipment breakdown insurance and one company doesn’t offer it, you may want to keep looking.

Learn more about home insurance coverage.

Deductibles

A deductible is the amount of a claim you’ll have to pay. The higher the deductible, the less your policy will cost, but the more you’ll have to come up with in an emergency. Avoid choosing a deductible you’d have trouble paying.

Depending on where you live, you may have different deductibles for different types of claims. In hurricane-prone states, for instance, you may have a separate wind or hurricane deductible that’s higher than what you’d pay for other types of claims. Make sure you’re comfortable with these amounts.

Company strength and customer service

You don’t want to wait till a natural disaster strikes to discover that your insurance company has lousy customer service or can’t afford to pay its claims. Read reviews of each insurer you’re considering to get a sense of how long they’ve been around and how well they treat their customers. Here’s where to find NerdWallet’s home insurance reviews.