What Is An HO-7 Home Insurance Policy?
An HO-7 policy is a type of homeowners insurance policy that is designed to cover damage to a mobile home and any personal property loss caused by 16 named perils. It also helps with lawsuits against you and temporary relocation costs.
If you own a home, you need homeowners or HO-1 insurance. When you rent you need renters, or HO-4 insurance. If you live in a manufactured home or another stationary type of residence you need a specific type of home insurance, this is known as HO-7 insurance.
Key Takeaways
An HO-7 policy is a type of homeowners policy designed for mobile homes, manufactured homes, travel trailers, and stationary RVs.
An HO-7 policy comes in two parts: an open-peril portion for dwelling, additional living expenses, personal liability, and loss of use coverage. A second part covers on a named-peril for the personal property coverage portion.
An HO7 policy does not cover flooding, mold, or earthquakes. A separate policy would need to be purchased to have adequate coverage.
What Is An HO-7 Insurance Policy?
An HO-7 policy is a broad form home insurance policy where coverage is designed for homes that are classified as mobile, or manufactured. This can also include travel trailers or stationary RVs. It will also cover the personal belongings within the dwelling.
An HO-7 policy covers the home on an open-perils basis. This means that unless the policy excludes the peril, you are covered for damages to the home and other structures named on the policy. Other structures can include sheds and garages.
As for your belongings, they are covered on a named-peril basis. There are sixteen common named perils that are listed on a policy. Among these are fire, damage from windstorms and hail, and water damage from plumbing.
Who Is An HO-7 Policy For?
If you own a home, you will want a standard HO-3 Homeowners policy. However, if your home is manufactured, or oftentimes called a mobile home, you will want an HO-7-type policy to cover your dwelling and its contents. Other types of structures an HO-7 policy covers are:
- Single-wide mobile homes
- Double-wide mobile homes
- Modular homes
- Sectional homes
- Park Model Homes
- Stationary RVs
- Travel Trailers
- Fifth-wheels
Important: According to the Manufactured Housing Institute, more than 22 million people in the US live in a manufactured home. That is one in fifteen.
What Does An HO-7 Policy Cover?
First, let’s talk about what perils a HO-7 policy covers. Remember, the overall policy covers on an ‘open-peril’ basis. The policyholder is covered for all perils that are not excluded by the policy itself.
Coverage A: Dwelling
This level of coverage protects the mobile home when damaged by events such as fire, wind, hail, and vandalism. It can include falling objects like tree branches but excludes landslides, earthquakes, and flooding. These would be included in add-on policies.
Coverage B: Other Structures
This part of HO-7 insurance covers repairs to other structures that are not attached to the home. This can include a shed or unattached garage.
Coverage C: Personal Property
This portion of HO-7 insurance covers under a ‘named-perils’ basis, meaning that if your claim should fall under a disaster not on the list, you would not be covered. Water backup caused by a neglected system, for instance, would not be covered if it damaged your favorite Persian rug. However, if that rug were damaged by water due to a burst pipe from freezing, it would.
Personal property is covered on a named peril basis. These are laid out in the policy. Here are sixteen of them:
- Fire or lightning
- Hail or windstorm
- Explosion
- Smoke
- Weight of snow, ice, or sleet
- Freezing
- Windstorm or hail
- Falling objects
- Aircraft
- Vehicles
- Vandalism
- Teft
- Riot or civil commotion
- Volcanic eruption
- Built-in appliance malfunction
- Plumbing, heating, AC overflow
Coverage D: Loss of Use
When you are unable to live in your home due to a covered event, this portion of your HO-7 policy kicks in. It will pay for hotel stays, meals, and certain daily living costs. This portion is also known as additional living expenses. It would not cover simple repairs such as a wall patch where you have to repaint a room.
Coverage E: Personal Liability
If you cause injuries to another party or there is damage to another person’s property while it is at your covered dwelling, your HO-7 insurance will cover up to your specified limits.
Coverage F: Medical Payments
If you are sued by another party due to bodily injury or property damage they incurred while on your property, this is the part of your coverage that handles legal expenses. There are maximum coverage limits on this portion. It covers things like surgery charges, medical bills, and ambulance fees.
Just like homeowners insurance, if you own valuable items, HO-7 insurance will not cover your personal valuable items when they are above a certain value. Most insurance companies set a sub-limit and if a policyholder elects, they can add additional coverage should they desire. Here are some of the sub-limits policies carry:
| Item | Sub-Limit |
| Computers | $1500 |
| Firearms | $2500 |
| Home Theater | $1500 |
| Jewelry | $1000/$5000 |
| Stamps | $1500 |
| Stamps/Art | $1500/$2500 |
| Furs | $1500 |
| Gold/Silver coins | $200 |
| Instruments | $2500 |
| Watercraft | $1500 |
Important: The 2013 National Fire Protection Association states that mobile homes experience up to 44% fewer fires than traditionally built homes. This is due to the fire-retardant material they are built with and the requirement for at least two emergency exit doors.
What Is Not Covered By An HO-7 Policy?
Just as all policies have extensive coverage, keep in mind that there are instances where insurance has its limits. This includes your HO-7 policy.
Here are the most common HO-7 policy exclusions:
- Flood
- Earthquake
- Hurricane
- Mold
- Pet Damage
- Neglect
- Vandalism
- Wear and Tear
- Building Code Enforcement
- Intentional Acts
- Governmental Act
In some states, you can purchase flood and earthquake insurance as a separate policy.
Another peril that is not covered is damage while in transit. While it is uncommon to have your home relocated, should you need to, and your home is damaged during the move, this incident is not covered by a standard policy. However, depending on your policy you may be able to purchase an endorsement added to cover your home relocation.
INSURANCE FACT: According to a Consumer Federation of America study, over one-third (35%) of owners of manufactured homes have no homeowners insurance.
How Much Does An HO-7 Policy Cost?
In 2024, the average cost for a manufactured home in the US is between $116,300 and $140,800. This would depend on where you live and the type of home construction you select. However, several other factors weigh into a home’s cost. The same can be said of a HO-7 policy cost. Here are the most common:
Location
It is a known fact that mobile homes are not as strong as brick-and-mortar homes or traditional stick framing. These homes can be susceptible to weather such as hurricanes and tornadic activity. Insurance can be higher for those living in areas where storms are more prevalent, such as Tornado Alley or along the east coast.
How Old The Home Is
Age can be a factor when it comes to purchasing an HO-7 policy. The home insurance cost will either be higher due to the wear and tear on the property, or companies may elect not to insure a property altogether.
Your Deductible
Just like auto insurance, a deductible is a major factor in the cost of HO-7 insurance. It will vary by insurer, where you live, and the type of policy you purchase.
Other factors that can contribute to an insurance cost are:
- Coverage limits
- Claim history
- Personal property value
- If you own or are renting a property
What’s The Difference Between An HO-7 And HO-3 Policy?
An HO-3 and an HO-7 policy are practically identical. The difference is in the type of home they are protecting. Both will protect the 16 personal property named perils; your belongings are covered. It is the structure that is where the differences lie.
The first is, the insurance is designed for manufactured homes, permanent trailers, and site-built RVs. Second, they give the owner the ability to transport the home if needed. An insurance add-on is available for that purpose,
How To Get An HO-7 Insurance Policy
It is simple to find HO-7 Mobile Home insurance. It is important to first know about your home and the risks that are posed to your area, this includes if you are on a flood plain or an area prone to earthquakes.
Identify your needs
Every home is different. This will be true of manufactured homes. Some will have features such as detached sheds and garages. Select a deductible level that will suit your current and future needs.
Research Insurers
As you are researching insurers, look for those that specialize in HO-7 policies. Also, look for those that have a high rating.
Compare quotes
Not all companies are created equal, nor is the insurance business; it is competitive. Get quotes from at least three mobile home insurance companies. Look for discounts such as bundling with your car or other items you own such as RV or motorcycle. Other discounts can include:
- New home discount
- Tie-down/skirted homes
- Retiree/Senior discount
- Security System installation
Purchase Policy
Carefully review the HO-7 you have chosen, sign your policy, and make your purchase.
Sometimes you can save on your premium by using the autopay option or paying for you policy in full. These options can vary by company, it can be one of the factors you use when you shop around.
Additional Coverage Options
HO-7 insurance has additional coverage options one can add to their policy. Some are often overlooked and thought to be included as standard in one’s policy.
Flood Insurance
No form of mobile home or homeowners insurance covers flood insurance. A flood is defined as a temporary condition of partial or complete submersion of normal dry land or properties. It can be caused by an overflowing river or stream, rain runoff, or landslide. One needs additional coverage to protect their home. Flood insurance will provide that protection for an added premium.
Earthquake Insurance
Just as some live in a flood zone, there are those who live in Earthquake Country. And many insurance policies for those living in these areas, do not cover earthquake damage unless you purchase earthquake insurance. Earthquakes can pose unique damage to mobile homes, especially with which type of beams keep them off the ground.
Short Term Rental
This type of policy is designed for those who rent out their mobile home on a short-term basis. However, if it is more of a long-term basis you will need to purchase Landlord Insurance. If it is temporary, you will be safe with short-term rental insurance. According to VRMA, a vacation rental income can comprise about 24% of the owner’s income.
Secondary Mobile Home
If you use your mobile home as a second home and only visit it seasonally, you still have to insure it. This HO-7 insurance can be riskier as the home will be vacant for most of the year and is susceptible to burglary, vandalism, and vagrancy. It can also be susceptible to damage by an unmonitored leak or unexpected fire
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