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What is an HO-7 insurance policy?

Fact-checked with HomeInsurance.com

A homeowners insurance policy isn’t a one-size-fits-all situation. There are lots of variations and options to think through. After all, your coverage needs are likely to be different if you owned a house versus a condominium. Real estate and insurance professionals reference the varying types of homeowners insurance as “HO” followed by a number. In this particular case, we will be examining what HO-7 insurance is.

What is HO-7 insurance?

HO-7 insurance is more commonly known as mobile home insurance. HO-7 protects the structure and contents of a manufactured or mobile home. A mobile or manufactured home is built in a factory and transported to the living site. Because they’re a little different from a standard type of home, they receive their own insurance classification.

Other codes you should become familiar with include:

  • HO-1: Homeowners insurance with a limited amount of coverage. It’s not sold often because it is not as comprehensive and only certain people qualify.
  • HO-2: “Broad form” homeowners insurance with more coverage than HO-1, but still limited compared to the HO-3
  • HO-3: The most popular type of homeowners insurance because it covers the most perils (16 in total)
  • HO-4: Standard renters insurance
  • HO-5: Comprehensive homeowners insurance providing the highest amount of coverage, including high-value belongings such as jewelry or art
  • HO-6: Homeowners insurance for condominium owners. It’s also known as a “walls in” policy.
  • HO-8: Homeowners insurance for historic and registered landmark homes

What does an HO-7 insurance policy cover?

Similar to an HO-3, an HO-7 typically covers a variety of perils a mobile home may be exposed to. The most common include:

  • Electrical damage
  • Explosions, fire, lightning
  • Frozen pipes
  • Hail 
  • Riots
  • Smoke
  • Snow and ice damage
  • Theft 
  • Volcanic eruptions
  • Vandalism
  • Water damage
  • Windstorms 

In addition, an HO-7 covers varying elements of your property limited to the amount stated in your policy. These elements include the following:

Coverage A: Dwelling

Covers your manufactured home’s structure, as well as any sheds and fences. Any claims will be paid based on the actual cash value of replacement materials and items at the time the loss occurred.

Coverage C: Personal property

This is the portion of the policy that protects your belongings inside the home. As with dwelling coverage, your items will be replaced at depreciated cash value.

Coverage D: Loss of use

If you can’t live in your home while it’s being rebuilt or repaired, loss of use coverage steps in. It will reimburse you for a hotel stay or alternative apartment rental while you wait for your mobile home to be ready, up to specified limits. 

Coverage E: Personal liability

This coverage pays for your legal fees and settlements if someone is injured or their property is damaged in any way while visiting you in your home. 

Coverage F: Medical payments

If someone is hurt in your home, this covers medical bills up to policy limits. The coverage only applies to visitors — not to household members.

What does an HO-7 insurance policy not cover?

Although an HO-7 insurance policy is fairly comprehensive, there are several important things it does not cover. You would need to buy separate coverage for the following if you feel they apply to your situation, as they are not included in your HO-7:

Certain natural disasters

There are three natural disasters an HO-7 doesn’t cover. Hurricanes, earthquakes and flooding. If you live in a high-risk zone for one or more of these, you’ll need to purchase separate insurance coverage. 

Mold

Mold is a common problem and can be expensive to fix. Unfortunately, many homeowners don’t realize their HO-7 insurance policy doesn’t cover mold remediation or replacement of property damaged due to mold. This coverage may be available as an optional add-on.

Pet damage

Your homeowners policy may cover a visitor’s medical bills if your pet bites or scratches them (some aggressive dog breeds may not be covered in your policy). However, damage to your personal property or home structure caused by your pet is not covered by your policy. This expense would have to be paid out of pocket if your dog tears your fence or chews up a door.

Building code issues

If your home burns down or your property is damaged due to flooding, the HO-7 will protect you in most cases. But if the insurer finds the fire, flooding or other types of loss was caused because of illegal building or upgrades not according to local code, the loss won’t be covered.

Other common exclusions include government acts, neglect and normal wear and tear.

HO-7 insurance policy considerations

When deciding on your HO-7 insurance policy needs, there are a couple of things you should consider. If you have valuable collectibles, jewelry or artwork, you may want to buy additional replacement coverage that will reimburse you for the higher-value items. You will need to list and document the items and potentially have to appraise the valuables to ensure they’re covered.

Know what type of environmental risks are common for your area. If you live in an area prone to flooding or hurricanes, you’ll need to obtain additional insurance to protect against the peril.

The takeaway

  • Homeowners insurance is classified into several categories and given codes
  • The most common codes are HO-3 (for homeowners), HO-4 (for renters) and HO-6 (for condo owners) 
  • HO-7 insurance is homeowners insurance for mobile or manufactured homes
  • Mobile home insurance doesn’t cover earthquakes, flooding and hurricanes

The variety of “homes” you can own — Condominiums, houses, lofts, and mobile homes — each have unique policy classifications. HO-7 policies, or mobile home insurance, protects your investment against damage to the structure and your property inside. It also covers you against lawsuits or medical bills if someone is injured in your home.

When obtaining HO-7, it’s important to be mindful of the risks in your area, the limits of your policy type and anything you may want additional protection for, to ensure you are adequately covered in the event of an incident.

Cynthia Paez Bowman

Writer

Cynthia splits her time between Los Angeles, CA and San Sebastian, Spain. She travels to Africa and the Middle East regularly to consult with women’s NGOs about small business development.

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