An HO-7 policy is a type of homeowners insurance designed for people who own mobile or factory-manufactured homes. Similar to a standard homeowners insurance policy, HO-7 insurance protects the structure of your mobile home and your personal property from perils like fire, burglary, and weather-related damage.
An HO-7 policy also includes liability coverage in the event you are found responsible for property damage or bodily injury, like if a guest is hurt while visiting your home. If your mobile or manufactured home becomes uninhabitable due to a covered loss, HO-7 insurance can help pay for additional living expenses while you temporarily stay elsewhere.
What does an HO-7 policy cover?
HO-7 insurance, also called mobile or manufactured home insurance, is financial protection for your mobile home. Like a standard homeowners insurance policy, HO-7 insurance contains different types of coverage and each type has its own coverage limit, meaning the maximum amount an insurance company will pay out for a covered loss.
Dwelling coverage is the core component of your HO-7 policy, and you should buy enough dwelling insurance to cover the replacement cost value value of your mobile home. That means that if your mobile home is totally destroyed in a fire, for example, the coverage would be enough to completely replace it.
Below is a look at the standard coverage components of an HO-7 policy:
What does it cover?
Protects the structure of the mobile home, including the walls, base, and roof
Mobile home extensions
Also called other structures coverage, protects additional structures associated with the mobile home, like a porch
Personal property coverage
Coverage for your belongings, whether they are located on-or-off your premises
Loss of use coverage
Covers the cost of additional living expenses if your mobile home becomes temporarily uninhabitable
Personal liability coverage
Covers the cost of legal or medical expenses if you're found at-fault for property damage or bodily injury
Medical expenses to others
Pays for minor injuries if a guest is hurt while in your mobile home, regardless of who was at fault
What perils does HO-7 insurance cover?
HO-7 insurance protects your mobile home and personal property in the event either are damaged by a covered peril in your policy. Some common risks that mobile homes are exposed to that are covered include:
Fire or lightning
Windstorm or hail
Accidental discharge or overflow of water or steam
Weight of ice, sleet, or snow
Freezing of plumbing
Damage caused by a vehicle (not your own)
Riots or unlawful commotion
If your mobile or manufactured home is damaged by any covered peril, you can file a claim with your homeowners insurance company and be reimbursed for the damage up to your policy’s limit.
What types of mobile homes are covered by HO-7 insurance?
HO-7 insurance is designed to protect homes that were manufactured in a factory. Below are the different types of mobile homes covered by HO-7 insurance:
Single-wide manufactured and single-wide mobile homes
Double-wide manufactured and double-wide mobile homes
Trailers, travel trailers, fifth-wheel trailers
Park model homes and certain types of RVs
Some types of stationary tiny houses
The age, size, and build of your manufactured home will affect the price of your mobile home insurance rates.
What does an HO-7 policy not cover?
In addition to the perils it does cover, your HO-7 policy will also include a list of excluded perils. Below are a few risks mobile home insurance does not cover:
Earthquake, sinkholes, or any type of earth movement
Maintenance issues or damage that occurs over time
Neglect or normal wear and tear
Most HO-7 also won’t cover your mobile home if it is damaged while in transit. Depending on your insurance company, you may be able to add an endorsement to your policy to protect your mobile home while it’s being transported from one location to another.
Additional coverage considerations for an HO-7 policy
Insurance companies offer additional coverage that you can add to your HO-7 policy for extra protection. In some instances, you may need to purchase a totally separate policy in addition to or instead of an HO-7 policy.
Secondary mobile home insurance
If your mobile home serves as a seasonal or vacation home, you’ll need a secondary or vacation mobile home insurance policy. Insurance companies charge more for secondary homes since they’re often vacant throughout the year, which makes them riskier to insure. Homes that are unoccupied for extended periods of time are more likely to be burgled or suffer sustained damage, like from a burst pipe or fire.
Short term rental coverage or landlord insurance
If you rent out your mobile home, your insurance company may require you to add short term rental coverage to your HO-7 policy. If you rent your mobile home out on a full-time basis, you’ll need a landlord insurance policy instead, which is a policy designed for homeowners who rent out their property as a source of income.
Your homeowners insurance policy won’t cover flooding, so if you live in an area that’s at risk for flooding you should consider purchasing flood insurance, a separate policy that insures your mobile or manufactured home against flood damage. Most flood insurance policies are administered through the NFIP (National Flood Insurance Program) and can be bought through the same insurance company that insures your mobile home. You can also buy flood insurance through the private marketplace.