Form differences: HO-3 vs HO-7
HO-3 is the standard homeowners form used for stick-built homes. Dwelling coverage is open-peril (covers anything not specifically excluded), contents are named-peril (covers only the listed causes of loss).
HO-7 is the manufactured/mobile home equivalent. The structure is the same — open-peril dwelling, named-peril contents — but rates, valuation rules, and underwriting standards are calibrated for manufactured housing. State insurance departments require HO-7 forms (not HO-3) for any home built on a chassis and titled as personal property.
Valuation: replacement cost vs actual cash value
Most HO-3 policies default to replacement cost on the dwelling — newer materials of similar quality, no depreciation deduction. Most HO-7 policies default to actual cash value on the dwelling and only offer replacement cost as a premium endorsement.
The financial difference at total-loss claim time is enormous. On a 15-year-old mobile home with a $60K replacement cost, ACV settlement might be $25K–$35K after depreciation. Replacement cost pays the full $60K (subject to policy limits). The 20–35% premium uplift for RC is the single highest-ROI coverage decision a mobile home owner makes.
Deductible structure
HO-3 policies typically have a single all-peril deductible ($500–$2,500 standard). Some catastrophe states add separate wind/hail deductibles, but only in defined coastal counties.
HO-7 policies routinely use separated wind/hail deductibles set as a percentage of dwelling value (1–5%) even on inland homes. A $1,000 standard deductible plus 2% wind/hail on an $80K mobile home means $1,600 out-of-pocket before any wind claim pays out.
Carrier availability
HO-3 is written by every major homeowners insurer in America — State Farm, Allstate, USAA, Farmers, Liberty Mutual, Progressive, Nationwide, etc. HO-7 is dominated by specialty carriers: Foremost (Farmers), Assurant, American Modern, and Progressive's specialty book.
State Farm and Allstate write very limited HO-7 coverage in 2026 — typically only newer homes in low-catastrophe states. Most quote requests from standard-market homeowner carriers come back declined.
Cost comparison
Direct premium comparison is tricky because dwelling values differ — but here's the rule of thumb on equivalent coverage:
- Mobile home premium per $1,000 of coverage is typically 1.5–3x higher than a comparable site-built home
- Total dollar premiums are often lower because mobile homes are valued lower
- Hurricane/tornado/wildfire surcharges hit mobile homes harder than HO-3 risks
- Bundling discounts smaller on HO-7 (5–10%) vs HO-3 (10–25%)
When to switch from HO-7 to HO-3
If you've permanently affixed your manufactured home to a foundation, removed the chassis, retitled it as real property, and your state allows it — you may qualify for HO-3 coverage. The premium is often dramatically lower and carrier appetite opens to the full standard market.
The retitling process varies by state and typically requires permanent foundation engineering certification, removal of the HUD label requirements, and a recorded affidavit of permanent fixture. Talk to your state DMV or county recorder for the exact process — and to an independent agent before assuming HO-3 pricing will hold.