Mobile Home Insurance

Mobile home insurance explained

You may not have realized that there is a type of home insurance designed specifically for mobile and manufactured homes. It offers many of the same types of coverage as basic homeowners insurance, including dwelling coverage, personal liability coverage, and contents coverage. Depending on the insurance provider, mobile home insurance may be purchased independently as its own policy or as an endorsement or rider to an existing policy.

What qualifies as a mobile home for mobile home insurance?

Mobile homes come in many forms and go by several names. Typically, any of the following types of structures can be covered under mobile home insurance, though we recommend contacting a BrokerLink insurance advisor for clarification:

• Mobile homes
• Modular homes
• Mini homes
• Tiny homes
• Double-wide home

Please note that, beyond the name, an insurance company may also have a list of criteria that your mobile home must meet to be covered under this type of home insurance policy. Criteria is likely to vary between insurance providers but may include the following:

• Your mobile home must be attached to a permanent foundation
• Your mobile home may need to meet specific building codes in the city, province, or municipality you reside in
• Your mobile home needs to be connected to a sewage system or septic tank
• Your mobile home may be required to have a heating system installed
• Your mobile home must meet manufacturers standards for anchoring

If you aren’t sure whether your home qualifies for mobile home insurance, give BrokerLink a call and speak with a licenced home insurance specialist directly. They can provide a professional opinion on whether mobile home insurance coverage is right for you.

Homeowners insurance vs. mobile home insurance

How does homeowners insurance differ from mobile home insurance? Since mobile homes are typically much smaller and cheaper to purchase than standard homes, mobile home insurance also tends to be cheaper than standard homeowners insurance. That said, it ultimately depends on which coverages you choose, as well as factors like your personal claims history. Regardless of the cost, the coverage included with mobile home insurance is often similar to that featured in house insurance. For instance, just as a property insurance plan offers financial protection against physical damage to your home and its belongings, as well as against liability claims, mobile home insurance does too. That said, there are a few key differences between homeowners insurance and mobile home insurance, which are outlined below:

• A house that can be moved vs. one which is stationary: Since mobile homes can be relocated, they require their own type of home insurance policy or a home insurance add-on, as this is a major factor that sets them apart from standard homes.
• Rating criteria for mobile homes: The rating criteria - otherwise known as an insurance company’s process for determining your premium - is different for mobile homes than it is for standard homes, specifically as it relates to age. Insurance companies may refuse to insure older mobile homes or any mobile home they deem to be high-risk.
• Property value: Another difference between homeowners insurance and mobile home insurance is that insurance companies typically prefer to offer coverage for mobile homes based on stated value vs. actual cash value.

What does mobile home insurance cover?

Mobile home insurance can feature a variety of coverages. It ultimately depends on which policy you choose. That said, the coverage options available to owners of mobile homes is typically similar to that available to owners of standard homes. As with any property insurance policy, it is important to choose one that has enough coverage in the event that you need to replace or rebuild your mobile home and its contents. Generally speaking, your mobile home insurance policy is likely to include the three main components of any property insurance policy: dwelling coverage, contents coverage, and personal liability coverage.

Dwelling coverage

The purpose of dwelling coverage is to protect the physical structure of your mobile home. Specifically, dwelling coverage aims to protect your mobile home from damage caused by the perils named in your policy. You can pick and choose perils according to those that you are most at risk for, or choose all perils coverage that will cover all of them. The perils available to you vary depending on your insurer but often include:

• Fire
• Lightning
• Smoke
• Theft
• Wind
• Car/aircraft impact
• Explosion
• Falling objects

Please note that dwelling coverage does not cover the land your mobile home sits on or any of your mobile home’s detached structures.

Content(s) coverage

Contents coverage is designed to protect mobile home owners from damage to the belongings inside the home. For example, if you added fire as a peril in your mobile home insurance policy, and a fire broke out and damaged the personal belongings that were in your mobile home, your insurer would pay you to replace the lost items. The specific items that contents insurance covers vary but may include the likes of clothing, electronics, furniture, jewellery, and more. If you keep high-value items in your mobile home, we recommend speaking with an insurance broker before purchasing a policy to make sure you choose a coverage limit that is high enough. In addition, depending on your situation, a personal articles floater for specific items might be worthwhile as well. You can speak with a BrokerLink insurance advisor about this too.

Personal liability coverage

Personal liability coverage is an important element in any home insurance policy, and that includes mobile home insurance. This type of coverage can protect you in the event that a legal claim alleging bodily injury or property damage is brought against you. In other words, if a guest or visitor to your mobile home accidentally injured themselves while on your property, they could choose to take legal action. Having to pay for even one lawsuit without insurance could have long-term financial consequences, which is what makes insurance, and personal liability coverage specifically, so important. While the amount of personal liability coverage differs by province, some insurance companies give policyholders the option of purchasing two million in personal liability coverage.

Optional mobile home coverage

If you want to enhance your mobile home insurance policy with additional protection, there are many ways to do so. From equipment breakdown coverage and overland water coverage to ATV insurance or watercraft coverage, check out a few types of coverages that can be added as riders or endorsements to mobile home insurance policies:

Commercial or Home Business coverage

If you plan to work out of your mobile home or even run a business out of it, then adding a commercial coverage rider to your policy will be important. This way, you will be covered if any damages or losses relating to business activities in your mobile home occur.

Equipment breakdown coverage

Equipment breakdown insurance covers policyholders in the event that a piece of equipment in their mobile home suffers a mechanical or electrical failure and stops working. Examples of equipment in a mobile home that might be covered include dishwashers, refrigerators, ovens, washing machines, and HVAC units, like air conditioners or heaters. If a piece of equipment covered under the equipment breakdown portion of your policy broke down, you could be reimbursed for the cost of repairing or replacing it.

Sewer backup coverage

Sewer backup coverage can cover you in the event that sewage or wastewater backs up and comes out of the drains in your mobile home, resulting in water damage.

Identity theft coverage

Identity theft coverage can reimburse you for the cost of a replacement card, such as a passport, and even the cost of legal fees required to recover credit scores. Identify theft coverage may even compensate you for any missed work due to the identity theft incident.

Overland water coverage

Depending on where your mobile home is located, overland water coverage is crucial as it can reimburse you for flooding caused by rapid snow melt, a nearby lake or river, etc. In other words, if your mobile home is parked near a body of water or in an area prone to heavy precipitation, overland water coverage is important.

Additional living expenses/loss of use coverage

If you are forced to temporarily relocate due to damage to your mobile home caused by an insured peril, additional living expenses coverage can help cover the cost. For example, if you need to live in a hotel while your mobile home is being repaired, your insurer may reimburse you for the cost of the hotel under the loss of use portion of your policy.

Other buildings and structures coverage

If you have detached structures on your property, like a detached garage, shed, or fence, you might need to add other buildings and structures coverage to your property if you want to protect them from damage. As noted above, dwelling insurance does not cover detached structures, only connected structures.

Transportation coverage

Transportation coverage might be worthwhile for mobile home owners who frequently transport their homes from place to place. If you plan on moving provinces, contact BrokerLink today.

Emergency removal coverage

Emergency removal coverage will cover the cost of disconnecting the power and water lines from your mobile home and moving it out of harm’s way, in the event that there is a flood, fire, or severe weather event.

For advice on what types of mobile home insurance coverage are right for you, contact BrokerLink today.

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The cost of mobile home insurance

Mobile home insurance rates vary dramatically depending on where you live in Canada, as well as other factors like the age, construction, and value of your mobile home. As mentioned, mobile home insurance rates are typically more affordable than homeowner’s insurance rates, since the value of mobile homes is usually lower. To give you a better idea of how much you can expect to pay for a mobile home insurance policy, we have put together a list of factors that insurance companies use to determine premiums:

Age

The age of your mobile home will be considered, especially if your mobile home is more than 25 years old. As noted previously, some insurers will refuse to cover mobile homes beyond a certain age owing to how at risk they would be of claims.

Location

Where your mobile home is primarily located can also impact your rates. An insurer will ask for your postal code so that they can gain insight into crime rates, risk of weather-related incidents, how close your mobile home is to a fire hydrant and emergency services, and more. They will take the time to research the main risks to your mobile home.

Type and construction

The type of materials used to construct the home and the type of home it is (e.g. whether it is a modular, tiny, mobile, or manufactured home) will both come into play.

Value

The overall value of your home will also be considered, mainly because an insurance company will want to know how much it would cost to replace it in the event of a total loss.

Claims history

Your personal claims history will be assessed when an insurer is setting your premium. The more claims you have, the higher your premium is likely to be. However, if you’ve never filed an insurance claim, you may qualify for a discount. Learn more about how to save on home insurance premiums by contacting BrokerLink today.

Coverage, deductible, and limit choices

The more coverage you choose to include with your policy and the higher your limits, the more your premium will be. Similarly, lower deductibles also lead to a mobile home insurance premium increase.

Contact BrokerLink to speak with a licenced home insurance professional about mobile home insurance

Learn more about mobile home insurance by contacting BrokerLink. The BrokerLink team consists of several licenced home insurance specialists who have experience insuring mobile and manufactured homes just like yours. We can also help if you’re looking for standard homeowner’s insurance, RV insurance, vacation property insurance, and more. A BrokerLink insurance advisor can answer any questions you may have, whether they pertain to coverage, deductibles, or even renewing insurance. A broker can also shop around on your behalf to ensure you get the best possible coverage at the lowest rate for your mobile home. So if you’re in need of a broker for home insurance, look no further than BrokerLink. Get started today by giving us a call, sending us an email, or visiting a BrokerLink location in person (we have over 200 in Canada!).

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FAQs on mobile home insurance

If you have any questions, contact one of our local branches.