An HO-7 policy covers mobile or manufactured homes, including:
- Single and double-wide mobile homes
- Sectional homes
- Modular homes
It provides the same broad form of coverage as an HO-3 policy for open perils and offers “all-risk” coverage for causes of loss not named in the policy. It is important to know that the HO-7 policy does not cover all forms of damage, as it only covers personal property for named perils – covered scenarios that are specifically listed on your insurance.
What Does HO-7 Insurance Cover?
The HO-7 policy is a named perils property insurance for mobile or manufactured homes that protects against anything not explicitly stated. It covers the structure of your home and any detached structures, but it only provides this protection on a specifically mentioned basis if an incident damages personal property.
The coverage also includes liability, loss of use (i.e., living expenses), and medical payments if someone gets injured at your house during an accident involving you as their host.
Welling and Other Structures
If your mobile home or any detached structures are destroyed or damaged following a covered loss, the insurance company pays out according to its replacement cost without accounting for the market rate, which may vary.
HO-7 policy provides coverage to the personal property in a mobile home, like furniture and clothing. If this personal property is destroyed following a named peril, you can expect compensation based on the actual cash value of these items.
Typical named perils covered in HO-7 policies include:
- Lightning or fire
- Hail or windstorm
- Damage caused by aircraft
- Riots or civil disturbances
- Smoke damage
- Damage caused by vehicles
- Vandalism and malicious mischief
- Falling objects
- Volcanic eruption
- Damage from the weight of snow, ice, or sleet
- Water damage from plumbing, heating, or air conditioning overflow
- Water heater cracking, tearing, and burning
- Damage from electrical current
- Pipe freezing
Suppose you own any valuables with sub-limits set by your insurers, such as fine jewelry or high-end electronics. In that case, it might be worth considering this option since they are not covered under standard limits – which may leave out valuable possessions if damaged in a disaster.
In the unfortunate event of liability of someone’s bodily injury or damaged property, you will be covered up to a specified limit. As a tip, it’s always wise to set the limit high as homeowner’s liability coverage is generally affordable.
Loss of use
Loss of use, also referred to as additional living expenses, will cover costs up to a specified limit if your home becomes inhabitable after a loss.
Medical payments to others
If someone is injured in your home, your HO-7 will cover medical expenses up to a specified limit. This can include coverage for:
- Medical bills and payments
- Surgery costs
- Ambulance or other hospital fees
- Dental work
- Nursing care
- Prosthetic devices
- Funeral expenses
What Does HO-7 Insurance Not Cover?
Your HO-7 policy may not cover your mobile home’s personal property for open perils, but it does protect against named ones. It is important to note that you will need proof of damage under one of the listed causes to receive compensation. Typical policy exclusions include:
- Vandalism to vacant dwellings
- Wear and tear
- Property damage caused by pets
- Enforcement of building codes and similar laws
- Intentional acts
- Government acts
While some states will have additional coverage options for perils such as floods or earthquakes, it is written as separate or limited coverage.
Who Is Best Suited for HO-7 Insurance?
If you own a mobile home, it’s essential to protect your investment with the proper homeowner’s insurance policy and understand what is covered. Think about the value of your home and personal property and how location might impact this decision when deciding if you need more policies or endorsements in addition to an HO-7 plan.
How Much Does HO-7 Insurance Usually Cost?
Mobile home insurance can cost anywhere from $300 to $1,000 a year, depending on where you live.
What Are the Other Types of Home Insurance Policy Forms?
While HO-7 may be your only option for home insurance, it’s important to understand the other policies.
HO-1 is the most basic and cheapest form of homeowner’s insurance, but it isn’t offered in many states. This policy only covers your building structure and personal belongings first, so there are many things not covered if you choose this option.
An HO-2 policy, also known as the broad form policy, offers more coverage than an HO-1 but less than an HO-3. Like a named perils policy, this type of insurance covers specific damages listed and nothing else.
HO-3 insurance is a type of home, personal belongings, and liability protection plan. You’ll typically also get coverage for additional living expenses and it covers other structures on your property as well.
An HO-3 policy is often referred to as an open perils policy, as it covers homes for all dangers except those explicitly excluded in its declarations page. It is the most common form of home insurance in the United States.
HO-4 renters insurance is a type of coverage that can help you recover from damages on your property.
HO-5 policies have features similar to an HO-3 but covers both the building and any contents (e.g., furs, fine art, or jewelry) if disaster strikes your home.
HO-6, also known as condo insurance, is designed to protect condo owners and their property. The amount of coverage you need will vary depending on what your HOA covers and how much risk you’re willing to take.
HO-8 insurance can provide you with protection if your home doesn’t meet the standards required by most insurers.
Homeowner Insurance FAQ
Is an HO-7 Policy Secondary Mobile Home Insurance?
If you own a mobile home that serves as your seasonal or vacation home, it is essential to have secondary insurance. Secondary dwellings are often vacant throughout the year, making them riskier and costlier for an insurer to protect.
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