HO-7 Mobile Home Insurance Guide

HO-7 mobile home insurance is the main policy available for mobile homes in the United States. This guide will cover the most important information about HO-7 policies including coverage options, perils, and exclusions. More than 20 million Americans reside in mobile homes full-time and many rent their mobile homes to tenants. Mobile home insurance options provide similar coverage to a single-family home and condominium insurance. The HO-7 policy is a widely popular policy specifically designed for mobile homes and manufactured homes. It offers similar protections to an HO-3 homeowner policy such as replacement cost, personal property, and legal liability.

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HO-7 insurance policies are “open peril” policies for the main dwelling which is the mobile home. All damage to the mobile home is covered regardless of the way it was damaged. However, the personal property in the mobile home is not written under an “open peril” policy but it’s categorized as “named peril”. This means all personal property is insured as long as it’s damaged by certain perils specifically named in the policy terms. Scroll below for the list of named perils under HO-7 policies.

Do You Need An HO-7 Insurance Policy?

HO-7 insurance policies are designed for more than mobile homes. Many other homes can be insured under an HO-7 policy such as:

  • Modular homes.
  • Sectional homes.
  • RV homes.
  • Trailers.
  • Single-wide and double-wide mobile homes.

Note: The HO-7 coverage provided by your insurance company is nearly identical to the popular HO-3 insurance available for single-family homes (used by 80% of American homeowners). This is a broad-form, all-encompassing insurance policy that protects you against all possible risks. The only exception is very rare/low-risk hazards that are specifically stated under the policy documents.

The HO-7 policy does not only cover the mobile home but it also covers the side structures of the home. For instance, if you have a shed or a garage near the mobile home it will automatically be insured under this policy. However, the coverage for side structures is usually up to 10% of the total coverage limit. Personal items such as your clothes and furniture inside the home are also insured at cash value and you must report the exact value of each item in the mobile home with the insurer to receive compensation.

HO-7 Mobile Home Insurance: What It Covers

The HO-7 insurance policy coverage extends to all items that are specifically named in your policy. The coverage varies by the insurance company and you can purchase full replacement value for your mobile home. For instance, it’s possible to insure a $50,000 mobile home as well as a $200,000 mobile home. The following is a list of coverage benefits that you’re entitled to when you have to make a claim:

Mobile Home Repairs/Replacement

Is the mobile home damaged or was it fully destroyed? The HO-7 plan will cover you for all repair costs and/or replacement costs. This plan extends to all attached or detached structures located on your property/land that surrounds the mobile home. The insurance company treats the land you own as your personal property and insures all structures on the property, similar to an HO-3 plan. Note: Some insurance companies may pay for the mobile home replacement only regardless of the market value of the mobile home. Consult with your agent to determine the coverage you need.

Mobile Home Property

All personal property inside the mobile home is insured. This covers you for all personal belongings in the mobile home ranging from furniture to your clothes. This policy only excludes high-value items such as jewelry, firearms, and cash. If you have valuables in your mobile home, make sure to report them and provide proof of value. This may increase your premiums, but the company will refuse to compensate you if you failed to report a high-value item.

Note: Personal items in the mobile home are insured under a “named perils” policy. In most cases, insurance companies name 10 or 16 possible perils. These perils include fire, lightning, hailstorm, windstorm, aircraft damage, explosions, civil disturbances, vehicle damage, theft, vandalism, falling objects, snow weight, water damage, air conditioning overflow, and others (depending on policy).

Legal Liability

HO-7 policies include legal liability coverage for legal fees and damages in the event of an accident. If a person injures themselves at the premises of your mobile home and they press charges, the insurance company will pay for your legal fees and compensation amount. We recommend increasing the liability insurance on your HO-7 policy because homeowners’ liability is cheaper than an auto insurance liability.

Living Costs

‘Loss Of Use’ coverage means that the insurance company pays for your living expenses up to a certain limit. If you need to move while your mobile home is being repaired or replaced, the insurance company will pay for your lodging, food, and transport. If you have mortgage payments on the mobile home, the insurance company will compensate you for the mortgage payments as well. 

Medical Coverage

Similar to legal liability, medical coverage protects you if someone injures themselves inside your mobile home. Note: This is usually capped at $5000 by default, and is not a replacement for medical insurance.

HO-7 Mobile Home Insurance: What It Does NOT Cover

There are certain situations in which an HO-7 policy does not cover the insured. The insurance company might refuse to pay out your claim if the damage was caused by any of the following:

Government Seizures/Illegal Builds

The mobile home’s infrastructure has to abide by all local building codes and any damages (floods, fire, etc) caused by buildings or upgrades that are not according to the legal code will not be compensated. If the government seizes the property for any reason, the insurance company will also refuse to pay out a claim.

Animal Damage

The HO-7 policy does not extend to damage caused by pets inside the mobile home. Example: If your dog starts biting the furniture and destroying the appliances in your mobile home, the insurance company will refuse to pay for the damage caused.

Certain Natural Disasters

The HO-7 policy, similar to other homeowner policies, does not cover you for certain natural disasters. These disasters include earthquakes, floods, nuclear damage, or war. If you live in a high-risk zone where any of these could occur, there’s a possibility to add these to your HO-7 plan.

Molding

Most HO-7 plans do not cover mold even though this is not a rare occurrence in mobile homes. Molding problems can be expensive to fix, and this is why you should consult your insurance agent to find out whether you’re covered. The coverage can be added to your existing plan.

HO-7 Insurance Conclusion

HO-7 policies provide excellent insurance options for different mobile homes, RVs, and modular homes. When you’re deciding on an HO-7 policy, you only have to remember a few key things: High-value items inside your home such as jewelry or firearms have to be reported and insured separately. If you live in an earthquake and flood-prone area, add these upgrades your policy in order to be covered. Get acquainted with the environmental risks in your area and make sure your HO-7 policy covers you for all potential damages.

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