What is an HO-7 Home Insurance Policy?

Understanding your HO-7 policy

HO-7 home insurance is insurance that covers RVs, sectional homes, modular homes, and trailers. Mobile home insurance accounts for things that affect mobile home owners, like an increased risk of theft, travel needs, and the lack of a foundation. It’s important to note that these types of homes are covered by the HO-7 only while stationary. If you plan to move or travel with your mobile home, you may need to buy additional coverage for homes in transit.

You also can’t purchase a standard homeowners insurance policy for a mobile home; you must purchase HO-7 home insurance.

Mobile homes that usually qualify for HO-7 coverage options are single-wide and double-wide mobile homes and live-in RVs. If a tornado displaces you from your mobile home, your HO-7 replaces your personal belongings and pays for your temporary housing.

Who is HO-7 insurance for?

This type of policy is for mobile home owners who want the same comprehensive homeowners insurance and peace of mind that applies to those who have a single-family home. The hazards of living in a mobile home can range from an increased possibility of theft of personal property and personal liability to a higher risk of certain weather events because the mobile home lacks a foundation.

If you are a renter in a mobile home, you won’t be able to purchase an HO-7 policy; you should purchase renters insurance instead.

Understanding your HO-7 policy insurance coverage

An HO-7 policy provides coverage for the mobile home on an open peril basis. This means the mobile home is covered for all perils that are not specifically excluded in the contract. The HO-7 policy also provides coverage for dwelling and other structures, personal property, loss of use, personal liability coverage, and medical expenses of others.

On the other hand, personal belongings are covered only for named perils. They include:

• Smoke
• Theft
• Falling objects
• Weight of ice, snow, or sleet
• Vehicles
• Vandalism
• Fire or lightning
• Windstorm or hail
• Riot or civil commotion
• Explosion
• Sudden and accidental tearing apart, burning, or cracking of a built-in appliance
• Sudden and accidental damage caused by an electrical current
• Freezing
• Aircraft
• Accidental discharge or overflow of water or stream
• Volcanic eruption

Dwelling

Dwelling coverage, known as Coverage A, protects your mobile home if it’s damaged by a catastrophic event like fire, wind damage, or other weather events. Most types of damage are covered unless specifically excluded from the policy. Some exclusions are landslides, neglect, earthquakes, and flooding.

Other structures coverage

Other structures coverage, known as Coverage B, pays to repair any other structures that are unattached to the home, such as a shed, fence, or external garage. If your home is damaged during a covered event, your insurance company will repair your mobile home at replacement cost value.

Personal property

Personal property insurance, known as Coverage C, protects any personal belongings — like furniture, clothing, or personal items — damaged or lost during a covered event. Your insurance company will pay for items on a named perils basis, which means it will only pay for incidents listed in your policy at the actual cash value.

Loss of use

Loss of use coverage, Coverage D, pays for a hotel, meal, and daily living costs when there is covered damage to your mobile home. If, for example, you’re unable to live in your home for a few days because water damage in your kitchen makes the home unlivable, your insurance company would pay for a temporary hotel stay.

Personal liability

Personal liability insurance within an HO-7 policy covers legal expenses if you’re sued by someone for bodily injury or property damage. The policy also covers legal bills up to the policy’s specified coverage limits.

Medical expenses of others

If someone has an accident or is injured in your mobile home, your HO-7 insurance covers their medical expenses. The policy has specified limits, so be sure to review your coverage options.

What is not covered by HO-7 Policy insurance?

Like other open peril policies, the HO-7 insurance policy has exclusions, including:

1. Mobile homes in transit: The majority of HO-7 mobile home insurance policies do not provide coverage while the mobile home is in transit. Depending on your policy, you may be able to purchase additional coverage (known as an endorsement) to the policy to cover your mobile home while it’s in transit.
2. Earthquake coverage: The HO-7 policy doesn’t provide earthquake coverage. If your mobile home is in an area where there are frequent earthquakes, you should buy a separate earthquake policy.
3. Flood damage: The HO-7 doesn’t provide coverage for flood damage. You can check the Flood Map Service Center on the Federal Emergency Management Association’s website to see if your home is in a flood zone. If it is, you should purchase separate flood insurance.
4. Mold: Mold isn’t covered under most HO-7 policies. While you may be able to add it through an endorsement to your policy, you should verify if it's a part of your coverage. Since mobile homes can be more prone to mold because of high humidity, this may be an ideal endorsement to buy.
5. Vandalism due to a vacant mobile home: If your mobile home is vacant, an HO-7 policy will not cover any damages.
6. Normal wear and tear: Your HO-7 policy doesn’t cover home damage due to normal wear and tear, like rusting, scratches, or deterioration.
7. Upgrades of building codes: If the building codes are upgraded and you have to bring your home up to code, your HO-7 policy will not reimburse you for any upgrades.

How much personal property coverage do you need from an HO-7 policy?

The HO-7 policy has several places where you can buy additional personal property coverage. If you have expensive items like luxury handbags, jewelry, or art, you want to consider purchasing more personal property coverage. You may also need to purchase additional coverage if your HO-7 doesn’t adequately cover your items.

Some insurance companies offer trip collision if your mobile home is on the road. The trip collision endorsement usually has a set duration where it pays for any damages to your mobile home’s structure while in transit. If you’re not sure how much homeowners insurance you need, you can also do more research to find out.

How much does an HO-7 insurance policy cost?

The cost of your homeowners insurance depends on a few different factors, including the location of your mobile home. According to insurance.com, the national average expected cost for standard homeowners insurance is $2,285. You can search for local homeowners insurance rates to see the price in your immediate area.

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Still have questions?

Have more questions about an HO-7 policy? We have answers.

What is an HO-7 policy?

The HO-7 policy is an insurance policy for mobile home owners. It covers the dwelling and other structures, personal property, personal liability, loss of use, and medical expenses of others for mobile homes, RVs, sectional homes, modular homes, and trailers while stationary.

What’s the difference between an HO-7 and an HO-3 policy?

An HO-7 policy is for mobile homes, while an HO-3 special form policy is for standard homes.