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What Is an HO-7 Insurance Policy? Mobile Home Coverage Explained

An HO-7 policy is a type of homeowners insurance for manufactured and mobile homes. With 22 million people living in manufactured homes in 2020 according to the Manufactured Housing Institute, the demand for homeowners insurance coverage for these non-traditional housing structures is clear.

An HO-7 policy is a type of homeowners insurance for manufactured and mobile homes.

If you plan to live in a manufactured or mobile home, you'll want to ensure you're protected. This HO-7 policy guide will explain when you're covered, where you're vulnerable and more.

Table of Contents:

What Is an HO-7 Insurance Policy?

Commonly called mobile home insurance, an HO-7 policy is a homeowners insurance policy just for manufactured and mobile homeowners. A manufactured home is typically built in a factory and then transported to a neighborhood. Mobile homes that typically qualify for insurance include single-wide and double-wide mobile homes and live-in RVs.

An HO-7 policy covers your dwelling, personal property, additional living expenses and personal liability

With mobile home insurance, your insurance company covers your dwelling, personal property, additional living expenses and personal liability. HO-7 policies offer open-peril coverage, just like standard home insurance — you're protected against all events except those specifically excluded in your policy. This typically includes fire, windstorms, falling objects and more.

Looking for another type of homeowners policy? Here are the eight different forms of homeowners insurance.

Policy 

Description

HO-1

Named-peril policy with the most limited coverage (protects against 10 out of 16 perils, no personal property or liability coverage).

HO-2

Named-peril policy with more coverage than an HO-1 policy (all 16 named perils plus personal property and liability coverage).

HO-3

Open-peril policy with more coverage than HO-2 broad form coverage. 

HO-4

Insurance policy for renters.

HO-5

Most comprehensive form of insurance coverage, open-peril policy for personal property coverage. 

HO-6

Insurance policy for condo owners.

HO-7

Insurance policy for mobile homeowners.

HO-8

Insurance policy for older properties.

What Does an HO-7 Policy Cover?

An HO-7 policy protects your manufactured or mobile home against 16 perils. You also get home insurance coverage for your dwelling, personal property, liability and more.

Covered Perils

Just like standard homeowners insurance policies, HO-7 insurance provides coverage against multiple natural disasters and other perils:

  • Vandalism or malicious mischief

  • Explosion

  • Volcanic eruption

  • Riot or civil commotion

  • Damage by aircraft

  • Weight of ice, sleet, snow

  • Damage by vehicles

  • Freezing of home systems

  • Smoke

  • Sudden/accidental power surges

  • Sudden/accidental tearing, cracking, burning, or bulging of home systems

  • Water/steam discharge from home systems and appliances

Coverage A: Dwelling 

With dwelling coverage, your insurance company will pay to repair or replace your manufactured or mobile home at replacement cost value or actual cash value if it's damaged under a covered event. This coverage extends to any sheds or fences on your property.

Coverage C: Personal Property

Personal property coverage protects personal belongings inside your home (e.g., clothes, furniture, electronics) if they are damaged or lost under a covered claim. Similar to regular home insurance, coverage is extended on a named-peril basis — this means your insurance company will only pay for incidents specifically listed in your policy. Your insurance carrier will typically cover personal property damage at actual cash value (the value of the item, minus depreciation).

Coverage D: Additional Living Expenses

Also called loss-of-use coverage, your daily living costs are covered if you're displaced from your mobile or manufactured home. If your mobile home is undergoing repairs after a riot blew through your neighborhood, for example, then you may need to stay a few nights in a hotel. Loss-of-use coverage would pay for your hotel bills (up to the coverage limits).

Coverage E: Liability 

Personal liability coverage will cover legal expenses when you're responsible for somebody else's injuries or their property was damaged while in your manufactured or mobile home.

Additional: Trip Collision

For homes on the road, insurance companies may offer trip collision coverage to protect your dwelling while in transit. Trip collision typically has a set duration (e.g., 30 days) and can pay for damages to your mobile home's structure if damaged during the trip.

Get Cheap Insurance for Manufactured or Mobile Home

What an HO-7 Policy Doesn't Cover

The excluded perils on an HO-7 policy are similar to other open-peril insurance policies. Generally, you will not be covered for the following events:

For any of these events to qualify as a covered loss, you will need to buy separate coverage. You can purchase a separate insurance policy (e.g., earthquake insurance) or ask your insurer if you can add it to your policy via an insurance rider, or endorsement.

Purchasing mold coverage may be worth considering, as mobile homes are prone to dampness and high humidity.

*NOTE: Purchasing mold coverage may be worth considering, as mobile homes are prone to dampness and high humidity. This creates an environment for mold, mildew and other fungi to grow. While a dehumidifier can help remove excess moisture, insurance can offer financial relief in severe cases.

How To Get an HO-7 Policy

Some national carriers, such as State Farm and Allstate, offer manufactured and mobile home insurance. You can also work with insurance carriers that specialize in mobile home insurance. When shopping for insurance, be sure to shop around and obtain multiple quotes from state and local insurers alike.

HO-7 Policy FAQs

Do you need mobile home insurance?

There is no federal law that mandates having mobile home insurance, just like standard homeowners insurance. However, if you're financing your manufactured or mobile home through a mortgage lender, you will likely need to provide proof of insurance before you can close on your loan.

Does my mobile home need to be tied down?

It would depend on your insurance carrier. An insurer may require you to secure your mobile home to the ground with approved tie-downs and ground anchors and notify them if you plan to move your home. Be sure to clarify these terms before purchasing insurance.

What's the difference between an HO-7 and HO-3 policy?

HO-3 special form insurance is intended for standard homes, while an HO-7 policy is meant to protect mobile and manufactured homes. While classified differently, both policies share many of the same types of coverage and are typically paid at actual cash value.

Why is a HO-7 policy not offered?

Not all insurance companies offer HO-7 policies since manufactured and mobile homes serve a different type of homeowner. In some cases, you may need to work with an insurer that specializes in mobile home insurance.

Finding Home Insurance For Your Mobile Home

A mobile or manufactured home is often a more affordable path to homeownership than a traditional home structure. Despite the lower cost, you will still want to ensure that your home is properly insured. SmartFinancial can help you find the right homeowners insurance policy that fits your budget and coverage needs. Our side-by-side comparison tables let you compare rates and policies from over 200 insurance carriers. Just enter your zip code below to receive your free quotes.

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