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Living in a mobile home can help accelerate your path to homeownership, especially in high-cost-of-living areas. One expense to consider, however, is mobile home insurance, which averages between $700 and $1,500 per year.
That’s a big range, and there are many factors insurers use to quote a premium. And since multiple insurance offers won’t be identical, it’s smart to compare mobile home insurance quotes to find the best one. Here’s what to look for.
Key Points
• Mobile home insurance, averaging between $700 and $1,500 annually, is an important expense to factor in when budgeting for manufactured home ownership.
• Gathering key details about your home’s age, construction, square footage, foundation type, and safety features before applying helps streamline the online quote process.
• Coverage options include actual cash value (ACV), which factors in depreciation for lower premiums, or replacement cost value (RCV), which provides higher payouts for greater protection.
• Standard HO-7 policies typically cover dwelling structures, attached features like porches and decks, personal belongings, and personal liability for injuries or property damage.
• Choosing a higher deductible lowers your monthly premium, while open peril coverage offers broader protection compared to named perils policies, which only cover specifically listed events.
Why Comparing Mobile Home Insurance Quotes is Crucial
Searching for mobile home insurance quotes online doesn’t mean you’ll get the same offer for coverage or pricing from each insurer. Even policies with the same type of coverage may have different costs. Alternatively, you may find insurers with similar pricing, but different policy details.
Information You Need Before Requesting a Quote
Before you can compare HO-7 policies, make sure you have the specific details available for your online application. In addition to your name and contact information, proof of ownership, and occupancy details, you’ll also need the following information.
Mobile Home Specifications
First, expect to enter some basic details about the manufactured home’s age and construction details.
• Address of the mobile home
• Date of construction
• Make and model
• Square footage
• Foundation type
• Wall material
If you’re unsure of the date, check your home for a HUD tag, which is usually located near the electrical panel, in a kitchen cabinet, or in a closet. The tag should include the construction date as well as its Wind Zone, Snow Load, and Roof Load capabilities.
Safety and Security Features
Any safety and security features should also be disclosed, since these can help lower the cost of your coverage.
• Tie-downs or other anchoring systems
• Alarms
• Cameras
• Exterior lighting
• Impact-resistant roofing
You may also be asked about the home’s heating, plumbing, and electrical systems.
Estimated Value of Personal Belongings
Manufactured home insurance quotes don’t just cover the structure; they also provide personal property coverage. As part of your application, you need to estimate how much your personal belongings are worth in order to get the right amount of coverage.
When calculating the value, include anything in your home that isn’t permanently affixed. Create an inventory of things like your furniture, electronics, and decor, then research each item’s current market value based on age and condition.
How to Compare Coverage Types and Limits
To find the best mobile home insurance quotes, compare these different factors to get the right balance of value and price.
Actual Cash Value (ACV) vs. Replacement Cost Value (RCV)
When you successfully file a claim with an HO-7 insurance policy, the payout amount you receive depends on whether your policy includes actual cash value (ACV) coverage or replacement cost value (RCV). Here’s the difference between the two:
ACV: Reimbursement factors in depreciation based on the mobile home’s age and condition. Policies are cheaper but you’ll receive less money for claims.
RCV: Reimbursement is based on the total cost it would take to replace your home with a new version. It’s more expensive to insure, but you get higher claims payouts.
Dwelling and Attached Structures (Coverage A & B)
Dwelling coverage includes the cost to repair or replace anything related to your mobile home’s structure, plus installed fixtures and anything that’s permanently attached (like cabinets and major appliances).
Attached structures are also covered, including porches, decks, awnings, sunrooms, or expansions. Look at the maximum amount of coverage offered, as well as any listed exclusions.
Personal Property and Liability Limits
Manufactured home insurance also includes personal property coverage, as mentioned above. Your policy will come with a maximum coverage amount. If you have high-value items like jewelry, electronics, or artwork, you may need to purchase additional coverage in order to get them insured.
Personal liability coverage is another feature of a standard policy. If you’re found liable for an injury or damage to someone else’s property while at your manufactured home, liability coverage can help with medical costs or legal fees.
Both of these features have a maximum policy limit, so compare those numbers when accessing quotes online.
Comparing Deductibles and Premium Costs
In addition to coverage limits in each category, also take a look at the various costs involved.
Standard Deductibles vs. Percentage Deductibles
Your insurance deductible is the amount of repairs you’re responsible for when filing a claim before your insurer pays the rest. There are two types of deductibles that have a big impact on how much you’ll pay:
Standard deductible: This is a fixed dollar amount you pay every time you file a claim. It usually runs anywhere between $100 and $5,000, depending on the amount you choose when comparing quotes.
Percentage deductible: This is when you pay for any damage up to a certain percentage of your home’s value listed in the policy. It could be between 1% and 10%; however, this type of deductible is usually only used for certain types of claims (such as wind, hail, or hurricanes).
How Deductibles Impact Your Monthly Premium
The size of your deductible impacts the price of your premium. When you agree to shoulder more of the financial responsibility of a claim by agreeing to a higher deductible, your premium costs less. But if you want to pay as little as possible when it comes time to file a claim, your premium will be more expensive.
If you want to lower your mobile home insurance costs, a higher deductible could offer savings in the short-term.
Watch Out for Hidden Exclusions and Differences in Perils
Read the details of each policy quote to see if any exclusions could impact your future claims coverage.
Named-Peril vs. Open-Peril Policies
An insurance peril is any type of event that causes damage to your mobile home and is covered by your insurance. But a policy may define coverage in one of two ways: either by named perils or open perils.
Named perils list out every type of event in which coverage applies, including fire, lightning, theft, vandalism, and more.
Open peril coverage lets you file a claim for anything except perils listed as specific exclusions. This gives you more generalized coverage.
Wind, Hail, and Flood Inclusions
Depending on where you live, you may need additional coverage to include earthquake, wind, hail, or flood damage in your mobile home insurance policy. If this is the case, compare quotes to see what kind of additional coverage you can get and at what price.
Living in a hurricane-prone area may make it more difficult to qualify for wind damage, just as living in areas with lots of hail may also make coverage more expensive. Flood insurance requirements depend on where you live in relation to marked flood zones.
The Takeaway
Reviewing multiple insurance policy options, including both the pricing and the details, makes a huge difference in how your mobile home is covered and how much you’ll pay both in terms of your premium and claims.
Ready to compare mobile home insurance quotes?
If you’re a new homebuyer, SoFi Protect can help you look into your insurance options. SoFi and Lemonade offer homeowners insurance that requires no brokers and no paperwork. Secure the coverage that works best for you and your home.
SoFi brings you real rates, with no bait and switch.
FAQ
Can I get a mobile home insurance quote online?
Yes, some insurers let you get an online quote for mobile home insurance, or you can use an online marketplace like SoFi to compare multiple quotes at once.
Does checking mobile home insurance rates affect my credit?
No, insurance companies don’t perform a hard credit check, so your credit report won’t get hit with a new inquiry.
Why are my mobile home insurance quotes so different in price?
Mobile home insurance quotes can be different because of each insurer’s risk scoring model. Quotes may also include different coverage and deductible amounts, which impact pricing.
What is the difference between comprehensive and named-peril HO-7 policies?
Comprehensive peril policies cover damage caused by any type of event except for those listed as exclusions. With a named-peril HO-7 policy, covered events are listed out and anything beyond that list is not covered.
How often should I compare mobile home insurance quotes?
It’s good to compare mobile home insurance quotes before your latest policy expires. You may also want to research options if your current insurer increases your premium price or changes coverage.
Photo credit: iStock/Studio4
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