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Insurance for mobile home renters: A guide

Mobile home renters’ insurance functions just like other renters’ insurance (also known as HO-4 in the industry). It can protect most of your personal property and grant you a degree of personal liability protection during tricky and inconvenient situations. Plus, it’s a fairly inexpensive investment.

Depending on the state and community where you reside, as well as the regional perils that are applicable, an annual fee usually does not go above $200. That amount will look like a bargain when compared to the $1,200+ average premium for most homeowners’ insurance.

Several mobile home buying guides often recommend tenants to purchase a mobile home renters’ insurance policy, but what exactly does it entail? Here’s a comprehensive guide prepared by the experts in commercial property investment – Sundance Property Management – to help you understand its nuances.

Standard coverage

Mobile home renter’s insurance typically offers protection in the following areas:

  • Personal property. Repairing or replacing a tenant’s personal belongings is possible, as long as the items are specifically covered by the policy. For instance, a tenant can make a claim in the event of personal property damage due to fire and theft. Items that can be covered include, but are not limited to, electronic devices, appliances, furniture, and jewelry.

    When shopping for policies, thoroughly examine what is considered as “covered losses” or “covered damage” to ensure that your most important belongings are protected.

  • Personal liability. If, as a result of the tenant’s actions, someone sustains injuries within the mobile home, personal liability protection can pay for medical costs. Most personal liability policies also cover instances wherein a pet owned by the tenant inflicts injuries to another person or causes damage to their personal property. However, personal liability protection doesn’t usually apply in the event where the tenant accidentally causes injury to themselves or their co-inhabitants.
  • Loss of use or additional living expenses. This type of protection insures tenants when a mobile home becomes unlivable. This is especially useful for communities that often experience mudslides, tornados, severe flooding, or other natural disasters. In these instances, expenses for temporary shelter, food, transportation to work, and others are covered by the insurance.

    Loss of use coverage also applies when a mobile home needs major repairs. If the repair work requires inhabitants to vacate the property and seek temporary accommodations, loss of use protection may apply. Best to check with an insurance provider what types of events are specifically covered by this clause.

Exemptions

Mobile home renters’ insurance does have some general exemptions. Damage incurred during construction work is not covered. In addition, as a mobile home is easy to transport and relocate (hence its name), damage incurred while in transit is usually not covered.

That said, it would be prudent for tenants to remove any expensive items and belongings before a mobile home is scheduled to be repaired or moved to another location.

As a side note, in the case of motor or RV homes (which are often confused with mobile homes), a different type of insurance applies — one that is more akin to automobile insurance.

Why getting home renters’ insurance for your mobile home is a great idea

Annual premiums are affordable

Renters’ insurance covers a range of properties, including mobile homes. Recent figures acquired by the National Association of Insurance Commissioners in 2019 show that a policy will usually cost around $180 per year. Of course, the exact amount you need to pay will ultimately depend on where you live, regional perils, and your preferred coverage.

To comply with landlord requirement

There is a misconception among some tenants that a landlord’s insurance will cover the mobile home and everything in it. While a property owner’s insurance will be able to cover the mobile home itself, this protection won’t extend to your personal belongings and any appliances you bring into the property. This is why many landlords require this insurance from new tenants.

To prepare for natural disasters

If you live in a state that’s frequently visited by natural disasters like tornadoes or floods, a mobile home renters’ insurance can come in handy as a buffer for any potential damage or loss that is quite likely to happen.

To mitigate risk of theft

Many mobile homes sit closely beside each other within a community. On the upside, neighbors are close enough that you can easily ask for assistance during some minor home mishaps. On the downside, some of these neighbors may not be the friendly kind. Protecting your possessions from potential theft will do you well in case this unfortunate event happens to you.

Should you want to learn more about mobile home renters’ insurance or if you’re interested in getting one, our team at Sundance Property Management can present you with the best options. Mobile homes, rentals, and other commercial properties are our forte, having been in the real estate scene in Ohio, Indiana, Kentucky, Georgia, and South Carolina since 1993. Call us at 608.513.3933 or send an email to info(at)sdpmi(dotted)com. You can also send us your inquiries here.

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