Table of Contents
- What Determines the Cost of Mobile Home Insurance?
- 1. Shop Around and Compare Quotes
- 2. Bundle Your Mobile Home and Auto Insurance
- 3. Raise Your Deductible
- 4. Install Protective Devices and Safety Features
- 5. Upgrade and Maintain Your Home’s Systems
- 6. Take Advantage of Available Discounts
- 7. Improve Your Credit-Based Insurance Score
- FAQ
Home insurance premium prices have skyrocketed more than 100% since 2019, adding a huge financial burden to homeowners across the country. But there are several ways you can reduce how much you pay each year. Learn what impacts your cost, plus seven strategies to lower your mobile home insurance.
Key Points
• Shopping around and comparing multiple HO-7 policy quotes from different insurers is one of the most effective ways to avoid overpaying for mobile home insurance.
• Bundling mobile home and auto insurance with the same company unlocks multi-policy discounts, while choosing a higher deductible directly reduces annual premium costs.
• Updating the roof or plumbing reduces insurer-assessed risk, and installing certified tie-downs or a permanent foundation can qualify homeowners for additional premium discounts.
• Owner-specific discounts are available for original title holders and retirees over age 50 or 55, while a claims-free history within a five-year window may also reduce premiums.
• Maintaining a strong credit-based insurance score helps qualify for lower premiums, as most states allow insurers to factor credit scores into the quoting process.
What Determines the Cost of Mobile Home Insurance?
Before digging into policy discounts, understand the three biggest factors impacting your mobile home insurance pricing.
Age and Condition of the Home
Insurers take into account the age and condition of your mobile home as part of the quote. The older the home and the worse its condition, the more you’ll have to pay since system malfunctions and other types of damage are more likely.
Location and Weather Risks
Geography and the threat of natural disasters also hugely impact your premium. Coastal areas prone to hurricanes, Western regions prone to wildfire, and Midwestern areas prone to hail and tornadoes are likely to see higher premiums compared to less volatile parts of the country.
Actual Cash Value vs. Replacement Cost
You can choose coverage that either offers actual cash value (ACV) or replacement cost value (RCV) when you file a claim. ACV costs less because you’re only reimbursed for the current market value of your mobile home. RCV is more expensive, but the insurer pays out for the amount it costs to repair or replace your home today.
Ready to learn how to save on mobile home insurance? Here are seven strategies to try out.
1. Shop Around and Compare Quotes
One of the best ways to save money on your mobile home insurance is to make sure you’re not paying more than you need to. Even if you already have a policy, you can shop around and check to see if you can save more with another insurer. Compare at least a few quotes from insurers that offer HO-7 policies. Then you can see which has the best coverage and pricing for your needs.
2. Bundle Your Mobile Home and Auto Insurance
Many insurers offer a multi-policy discount, which lowers your car insurance and mobile home insurance when they’re with the same company. If you’re shopping for new policies, you can usually get a quote for both at the same time, or you can add a policy with an insurer you already use. When comparing quotes, just make sure you find companies that offer both mobile home and auto insurance.
3. Raise Your Deductible
Your home insurance deductible directly impacts how much you pay for your premium each year. It’s the amount of money you’re responsible for when filing a claim before insurance coverage activates. Because of that, opting for a higher deductible can save you on your premium. And if you don’t frequently file claims, you’ll get the long-term savings. Just make sure you’re financially prepared to cover the deductible in case of an emergency.
4. Install Protective Devices and Safety Features
A few security upgrades can also reduce your HO-7 premium by anywhere between 5% and 20%.
Smoke Alarms and Fire Extinguishers
Having working smoke alarms and fire extinguishers throughout your mobile home decreases the risk of fire and smoke damage. Not only are they great for your own personal safety, but insurers often offer a discount.
Deadbolts and Security Systems
Adding deadbolts and security systems may also help you save. Mobile home insurance policies cover damage and property loss caused by theft or vandalism. Taking preventative measures against these events can help prevent expensive claims in the future, so insurers can pass some short-term savings onto you.
5. Upgrade and Maintain Your Home’s Systems
Staying on top of your home maintenance and making some strategic upgrades can result in substantial mobile home insurance discounts. Just remember to call and let your insurer know anytime you make a major change to your home.
Upgrading Older Roofs and Plumbing
Roofs and plumbing are two expensive repairs that insurers evaluate based on risk. When you update either one (or both), you may qualify for a cheaper mobile home insurance policy. Why? Older roofs are more susceptible to water damage and overall deterioration, as are outdated pipes and water shut-off valves. Upgrading these major parts of your home can help prevent costly water-related claims in your home.
Installing Approved Tie-Downs
Tie-downs prevent your home from shifting or toppling, especially during storm seasons and other periods of high wind. If you live in a part of the country that’s designated a high wind zone, you’ll need more tie-downs and anchors. To qualify for a discount, you’ll need to get a Mobile Home Tie-Down Certificate from a certified inspector or contractor.
6. Take Advantage of Available Discounts
Insurers may also offer a variety of discounts based on the owner. Here are some common examples.
Original Owner Discount
Some insurers have a discount if you’re the original title holder of your mobile home.
Retiree or Over-50 Discount
Retired individuals and those over a certain age (usually 50 or 55) may qualify for a discount.
Claims-Free Discount
When switching to a new insurance company, you may qualify for a less expensive policy if you haven’t filed any claims recently. Insurers often look at a five-year window for this discount.
7. Improve Your Credit-Based Insurance Score
Most states allow insurers to check your credit-based insurance score as part of the quote process. A better score helps you qualify for a lower premium. Here are the main factors that impact your credit-based insurance score:
• Payment history
• Outstanding debt
• Length of credit history
• New credit applications
• Credit mix
The Takeaway
Finding cheap mobile home insurance isn’t impossible. Using some proactive strategies to qualify for discounts can make your premiums much more affordable. Ready to start with step one and compare multiple 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
Why is mobile home insurance so expensive?
Mobile home insurance may feel expensive because the structure is lighter and more susceptible to damage in severe weather. Many mobile homes are located in high-risk areas like Florida and California. Plus, overall home insurance prices have increased in recent years.
Are older mobile homes more expensive to insure?
Yes, older mobile homes are more expensive to insure because the systems and durability of the home are less reliable. Anything built before 1976 is especially difficult to insure because there weren’t federal building standards.
Does putting my mobile home on a permanent foundation lower insurance?
Yes, a permanent foundation makes your home more stable during high wind, lowering the risk of damage (and your insurance premium).
Will changing my deductible really make a difference?
Yes, changing your deductible really does make a difference in the cost of your premium. A lower deductible makes your rate go up, while a higher deductible helps lower your premium cost.
Do I lose my claims-free discount if I switch mobile home insurance companies?
No, you won’t necessarily lose a claims-free discount when you switch mobile home insurance companies. But you do need to get a policy with a new insurer offering the same discount.
Photo credit: iStock/LaylaBird
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