Mobile Home Insurance Requirements: What Lenders and Parks Expect You to Know
- Nate Jones, CPCU, ARM, CLCS, AU
- Dec 31, 2025
- 3 min read
If you own or are planning to purchase a mobile or manufactured home, understanding insurance requirements is crucial. Lenders and mobile home parks often mandate proof of insurance before approving financing or allowing occupancy. Mobile home insurance not only protects your investment but also ensures you meet the legal and contractual obligations set by lenders and park management.
This guide explains what coverage is typically required, why it’s important, and how you can secure the right insurance.
Why Insurance Is Required
Both lenders and mobile home parks have a vested interest in protecting the property:
Lenders require insurance to protect the collateral they hold against the loan. If the home is damaged, the insurance payout ensures the loan is still secure.
Mobile Home Parks want to minimize liability and protect the community. They typically require owners to maintain insurance for personal liability and structural coverage.
Failure to meet these requirements can result in loan denial, eviction, or financial penalties.
Minimum Coverage Lenders Expect
Lenders usually require the following coverages:
Dwelling Coverage – Protects the structure of the mobile home against fire, wind, hail, and other perils.
Personal Property Coverage – Covers belongings inside the home.
Liability Coverage – Protects against claims if someone is injured on your property.
Additional Living Expenses (ALE) – Optional, but some lenders prefer coverage for temporary housing if the home is uninhabitable.
Coverage limits vary depending on the loan amount, home value, and location. Insurance Information Institute – Mobile Home Insurance
Insurance Requirements for Mobile Home Parks
Park owners typically have similar expectations but may add specific conditions:
Proof of active insurance policy upon move-in
Minimum liability coverage, often ranging from $100,000 to $300,000
Dwelling coverage that meets replacement cost or specified limits
Evidence of coverage renewal each year
Some parks may also require endorsements for wind, hail, or fire, especially in regions prone to natural disasters.
Optional Coverage You Might Consider
To fully protect your home and belongings, consider these additional options:
Flood or earthquake coverage if you live in a risk-prone area
Extended replacement cost coverage to fully rebuild in case of severe damage
Comprehensive personal property coverage for high-value items
Umbrella liability for added protection beyond standard limits
FEMA notes that flood damage is not covered under standard policies, so separate coverage may be necessary.
How to Meet Requirements and Save Money
Shop around and compare policies tailored for mobile homes
Bundle insurance with auto or other policies for discounts
Maintain safety features like smoke detectors and storm anchors
Work with experienced providers who understand lender and park requirements
Wexford Insurance helps ensure your coverage meets lender and park requirements while keeping premiums competitive.
Conclusion
Meeting insurance requirements is essential for both compliance and protection of your mobile home investment. Lenders and parks expect proof of coverage, minimum liability limits, and adequate dwelling protection. With the right policy, you not only satisfy these requirements but also gain peace of mind against unexpected losses.
Wexford Insurance specializes in mobile home coverage, helping owners meet all requirements while providing reliable protection for home and belongings.
Contact us today.