What Insurance Is Required for Mobile Homes?
Unlike auto insurance, mobile home insurance is not required by law in most cases. However, this doesn't make it any less important. If you have a loan on your mobile home, your lender will likely require insurance protection as a condition of the loan and may buy insurance for you and charge you the premiums if you don't maintain adequate coverage yourself.
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Mobile Home Insurance
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If your lender, or another agency, requires you to carry insurance for your mobile home, you need the mobile home equivalent of homeowner's coverage, usually called mobile or manufactured home insurance. For insurers, these terms are used interchangeably. While these policies are considered a type of specialty insurance, many of the largest insurers offer this type of coverage, so you may be able to buy a policy from your existing insurance company.
Dwelling Coverage
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Like homeowner's insurance, mobile home policies pay to repair or replace your mobile home after a loss. Some policies offer named peril coverage, meaning they will pay only in the event that your home is damaged by one of the causes of loss listed in your policy. Others, like the Foremost Insurance Group, offer comprehensive dwelling coverage on all their policies. This means the insurer covers all forms of direct loss unless the policy specifically excludes it.
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Contents and Liability
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Also like homeowner's insurance, mobile home policies offer coverage for your personal belongings, so you can replace your clothing, furniture and other items if they are damaged in a loss. Some policies even include flood coverage, which is a standard exclusion on homeowner's insurance. Mobile home insurance typically includes liability coverage, which pays for injuries and property damage you accidentally cause to another person, as well as any legal costs and fees that arise from an accident.
Other Coverages
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Mobile homes face perils that standard homes do not, and mobile home insurance can be tailored to meet those needs. Every insurance company crafts its own policy, so the optional features are not the same among insurers. However, one common additional feature is trip collision coverage. Because mobile homes are, by definition, mobile, they must be transported from the factory to your property, and you can usually move them somewhere else if you choose. Trip coverage pays for damage to your home that occurs when it is being moved, subject to the terms of your policy.
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References
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