What Is an HO7 Insurance Policy?

An HO7 insurance policy — sometimes called a "mobile home form" or MH3 policy — is a specialized homeowners insurance policy designed exclusively for mobile, manufactured, and modular homes. It mirrors the structure of a standard HO3 homeowners policy but is tailored to the unique risks and construction characteristics that come with factory-built housing.

The HO7 covers the dwelling on an open-perils basis, meaning your home's structure is protected against all causes of loss except those specifically listed as exclusions. Personal property, however, is covered on a named-perils basis, meaning only the specific hazards listed in the policy — such as fire, lightning, windstorm, hail, theft, and vandalism — are covered.

What Does an HO7 Policy Cover?

A standard HO7 policy is broken down into six key coverage components:

What's Excluded From HO7 Coverage?

While HO7 provides broad dwelling protection, several common perils are not covered by a standard policy:

• Flooding — Requires a separate flood insurance policy (typically through NFIP)
• Earthquakes — Needs a standalone earthquake rider or policy
• In-transit damage — Coverage only applies when the home is stationary
• Wear and tear / maintenance neglect — Not a covered loss under any HO policy
• Pest or rodent damage — Excluded from virtually all homeowners forms
• Landslides or ground movement — Requires a separate endorsement

HO7 vs. HO3: Key Differences Explained

Many buyers wonder why they can't just use a standard HO3 vs HO5 homeowners policy for a manufactured home. The answer comes down to construction type and risk profile. Site-built homes and factory-built homes are assessed very differently by insurers.

One of the most important distinctions is that HO7 policies only apply when the home is stationary. If your manufactured home sustains damage while being moved to a new location, a standard HO7 will not respond to that claim. You would need a separate transit endorsement.

Additionally, HO7 policies may carry stricter underwriting requirements for older homes — particularly those built before June 1976, which predate modern HUD construction and safety standards. Learn more about how modified coverage for older homes works if your home doesn't qualify for standard HO7 placement.

HO7 Policy Cost & What Affects Your Premium

What Does HO7 Insurance Cost?

Mobile home insurance typically costs between $700 and $1,500 per year nationally, though your actual premium will depend on a variety of risk factors. In high-risk states like Florida, Texas, or California, annual premiums can climb to $1,800–$2,700 or more.

Factors That Affect Your HO7 Premium

• Home age and condition — Older homes are considered higher risk and often result in higher premiums or coverage restrictions
• Location — Coastal, tornado-prone, or flood-adjacent areas drive up costs significantly
• Home size and value — Larger, higher-value homes carry higher dwelling coverage limits
• Claims history — Prior claims can increase your rate at renewal
• Deductible amount — Choosing a higher deductible lowers your premium but increases your out-of-pocket costs per claim
• Safety features — Smoke detectors, deadbolt locks, and storm shutters can earn discounts

Who Offers HO7 Policies?

Not every insurer writes coverage for manufactured homes. Here are the leading providers specializing in HO7-style mobile home coverage:

Understanding mobile home insurance coverage, costs, and the best companies in detail can help you compare quotes more effectively before committing to a policy.

Is HO7 Required? Owned Land vs. Rented Lot

When Is HO7 Insurance Required?

Mobile home insurance is not required by law in any U.S. state. However, if you are financing your manufactured home through a lender — whether via a chattel loan, traditional mortgage, or HUD Title I program — your lender will almost certainly require proof of insurance before closing and throughout the life of the loan.

If you fail to maintain coverage, your lender has the right to purchase force-placed insurance on your behalf. Force-placed policies are significantly more expensive than standard HO7 coverage and typically only protect the lender's interest — not yours.

Some mobile home park communities also require residents to carry a minimum level of insurance as a condition of the lease. This is especially common in densely packed communities where a fire or explosion could quickly spread to neighboring homes.

Owned Land vs. Rented Lot: How It Changes Your Coverage

Where your manufactured home sits has real implications for how your HO7 policy is structured.

If your home is permanently affixed to land you own, it may qualify for treatment as real property — potentially unlocking more favorable lending terms and broader coverage options. If your home sits on a rented lot in a mobile home park, your policy will focus solely on the home structure and its contents, since you have no insurable interest in the land itself.

This is an important distinction to discuss with your insurer and, if applicable, your lender. Just as condo owners need separate HO6 coverage because they don't own the building structure, manufactured home residents on rented land need to be clear about what they do and don't own — and insure accordingly.

Frequently Asked Questions About HO7 Insurance

What is the difference between an HO7 and HO3 insurance policy?

An HO3 is the standard homeowners insurance policy designed for site-built, single-family homes. An HO7 is the equivalent form for mobile and manufactured homes. Both offer open-perils coverage on the dwelling and named-perils coverage on personal property. The biggest difference is that HO7 policies include restrictions for homes in transit and may carry lower coverage caps — reflecting the unique risks of factory-built housing.

Does HO7 insurance cover flood or earthquake damage?

No. Flood and earthquake damage are explicitly excluded from standard HO7 policies, just as they are from HO3 and most other homeowners forms. If your manufactured home is in a flood-prone area or a seismically active region, you will need to purchase separate flood insurance (through NFIP or a private insurer) and/or an earthquake endorsement to be fully protected.

Is HO7 insurance required if I own my manufactured home outright?

If you own your home free and clear with no financing, you are not legally required to carry HO7 insurance. However, if your home is located in a mobile home park, the community's lease may still require you to maintain a minimum level of coverage. Even without a legal mandate, going uninsured on a home worth tens of thousands of dollars is a significant financial risk.

Can I get an HO7 policy on a pre-1976 manufactured home?

It can be more difficult — but not impossible — to insure a home built before the 1976 HUD Code took effect. Pre-HUD homes are considered higher risk due to older construction standards. Some insurers, like Foremost Insurance, specialize in writing policies for older manufactured homes, though premiums may be higher and coverage limits more restrictive. In some cases, an HO8 modified coverage form may be the only available option.

How can I lower the cost of my HO7 insurance premium?

There are several effective strategies to reduce your HO7 premium. Bundling your mobile home insurance with your auto policy is one of the quickest ways to save. You can also raise your deductible, install safety features like smoke alarms and storm shutters, maintain a claims-free history, and shop multiple quotes from specialists like Foremost, CoverTree, or Kin Insurance. Comparing rates annually ensures you're not overpaying as your home ages or your circumstances change.