Is your mobile home fully protected under an HO-7 policy?
An HO-7 policy specifically covers mobile or manufactured homes, including trailers, single- and double-wide mobile homes, sectional homes, RVs, and modular homes. It offers the same broad form of coverage seen in an HO-3 for open perils — it provides "all risk" coverage for perils (causes of loss) not specifically named in the policy. It's important to note that while an HO-7 policy provides open peril coverage for the dwelling and other structures, any personal property (the contents of the mobile home) is only covered for named perils — perils that are specifically listed on your policy.
Property Covered Against
Contents Covered Against
HO-7 - Mobile Home Form
An HO-7 protects your mobile or manufactured home against anything that's not specifically named in your policy. Although open-peril coverage is applied to the structure of your home and detached structures, this coverage is applied on a named-peril basis if your personal property is damaged. It also provides coverage for liability, loss of use, and medical payments.
This includes your mobile home and any detached structures, i.e., fencing or detached garage. If your manufactured home is destroyed or damaged following a covered loss, the insurance company pays out the claim according to the home's replacement cost, without accounting for its market rate, which may differ significantly.
An HO-7 policy provides coverage to the personal property in your mobile home, like furniture and clothing, for perils that are specifically listed — or named — on your policy. If your personal property is destroyed following a named peril, the insurance company will pay out according to the actual cash value of your items.
If you own any valuables, it might be a good idea to add an endorsement or rider to your homeowners policy to extend the limits on certain valuables, like jewelry, firearms, silverware, and electronics since they have sub-limits set by the insurance company.
This protects you in the event you're found liable for someone's bodily injuries or damaged property. Like car insurance liability coverage, this covers you up to the specified limit. It's always a good idea to set the limit high since homeowners liability coverage is generally much cheaper than auto insurance liability.
Also known as additional living expenses, this covers your expenses up to the specified limit if you need to live elsewhere once your mobile home becomes uninhabitable following a loss.
If someone is injured in your mobile home, this provides coverage for their medical expenses up to the specified limit.
Though an HO-7 policy protects your mobile home against open perils, it's important to keep in mind this coverage is applied differently to your personal property — which is covered only for named perils. You will need to prove your personal property was damaged under one of the named perils.
*Separate flood insurance may be available in some states.
**Some policies allow you to add limited coverage on your policy for mold.
***If applicable, earthquake insurance may be added as a separate policy.
If you own a mobile home, it's extremely important to protect your investment with the right homeowners policy and understand what's covered and what's not. Consider the value of your home and personal property and assess the potential risks of your location to decide whether you need to bolster your HO-7 policy with additional endorsement or policies. While an HO-7 provides open peril coverage for the structure of your manufactured home — which is usually sufficient whether you live in a mobile home or a house — consider the exclusions that won't be covered following a loss. For example, if you live in a flood-prone area, it might be a good idea to opt for a separate flood insurance policy on top of your existing HO-7 policy.
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