What does Mobile Home insurance cover?

Mobile home insurance pays to repair or replace your home and belongings. It also pays for the medical bills of injured guests and your legal fees.

Dwelling Coverage

This pays to fix or replace your home. Dwelling coverage pays up to your policy limits if your mobile home is damaged by fire, smoke, wind, hail, heavy rainfall, weight of ice and snow, falling objects, burst pipes, lightning, explosions or vandalism.

Personal Property

This coverage pays out if your personal items are damaged or stolen. There are limits to personal property coverage, so you may need to buy extra coverage if you have other high value items you want to insure.

Personal Liability

Liability mobile home insurance can pay for lawsuit claims filed against you for accidental injuries or property damage you do to other people. It also pays for the medical expenses of guests injured in your home.

Medical Payments

This coverage pays the smaller medical bills of people who are accidentally hurt on your property, regardless of fault. It’s usually capped at $5,000 so it can be used for minor injuries that result in small medical bills. This way guests are less likely to sue you for minor incidents.

How much insurance should I have?

You want to get dwelling coverage in the amount equal to what it would cost to rebuild or replace your mobile home with comparable materials. Or, at least you should get as much as you can afford.

If you file a claim, your insurer will reimburse you only up to the limits in your policy. Depending on your policy, you will either be paid the actual cash value, replacement cost or an agreed upon value of your mobile home.

Replacement cost coverage is better than actual cash value. With replacement cost you get the amount of money needed to rebuild your home with equitable materials without deductions for depreciation. Not all insurance companies offer replacement value for mobile homes.

Actual cash value considers your mobile home’s depreciation and thus would pay out less if your home is destroyed.

An agreed lost settlement amount is the amount of coverage you and your insurer agree to when your policy is drafted. You’re guaranteed to get that amount in the event of a total loss.

Personal Property



The coverage amount for your belongings is usually set between 50% to 70% of your dwelling coverage amount. For example, if your mobile home is insured for $50,000, and your personal property coverage is set at 50%, you’ll have $25,000 in contents coverage. You can buy extra protection if you want.

Liability

Generally, you want a liability insurance amount that matches what you might lose in a lawsuit.  If you face a big lawsuit, you don’t want to have inadequate liability coverage.