What Is an HO-7 Insurance Policy? Mobile Home Coverage Explained
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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.
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.
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.
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.
Named-peril policy with the most limited coverage (protects against 10 out of 16 perils, no personal property or liability coverage).
Named-peril policy with more coverage than an HO-1 policy (all 16 named perils plus personal property and liability coverage).
Open-peril policy with more coverage than HO-2 broad form coverage.
Insurance policy for renters.
Most comprehensive form of insurance coverage, open-peril policy for personal property coverage.
Insurance policy for condo owners.
Insurance policy for mobile homeowners.
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.
Just like standard homeowners insurance policies, HO-7 insurance provides coverage against multiple natural disasters and other perils:
Fire or lightning
Vandalism or malicious mischief
Riot or civil commotion
Damage by aircraft
Weight of ice, sleet, snow
Damage by vehicles
Freezing of home systems
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.
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:
- Damage to vacant properties
- Government acts
- Pet damages
- Upgrades of building codes
- Wear and tear
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.
*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.
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.