Mobile homes offer an affordable housing option for many Tennesseans, but one aspect that often catches homeowners off guard is the relatively high cost of mobile home insurance in the state. In this blog post, we’ll explore the reasons behind the expense of mobile home insurance in Tennessee and shed light on the factors, challenges, and considerations that drive up insurance premiums.

Factors Influencing Mobile Home Insurance Costs in Tennessee
Severe Weather and Natural Disasters
Tennessee is known for its unpredictable and sometimes extreme weather, including hurricanes, tornadoes, and hailstorms. These natural disasters pose a significant risk to mobile homes, making insurance coverage more expensive due to the increased likelihood of claims for storm-related damage.
Proximity to Coastal Areas
Mobile homes located in coastal regions, such as the Gulf of Mexico, are at a higher risk of wind and flood damage during hurricane season. Insurance companies often charge higher premiums for manufactured homes in these areas to account for the increased risk.
Older Mobile Homes
Many mobile homes in Tennessee are older models, which can be more susceptible to damage and may not meet modern construction standards. Older homes often come with higher insurance premiums due to the higher likelihood of claims.
Limited Insurance Providers
Tennessee has a limited number of insurance companies that specialize in mobile home coverage. This lack of competition can result in higher premiums as insurers have more control over pricing.
Liability Concerns
Mobile home parks may have liability concerns related to accidents or injuries that occur within the park. These concerns can result in higher insurance costs, which are often passed on to manufactured home owners through higher premiums.
Challenges and Considerations
Windstorm Insurance
In Tennessee, many manufactured home owners are required to purchase separate windstorm insurance, which can significantly increase the overall cost of coverage. This is especially true for homes in coastal areas.
Flood Insurance
Flood insurance is typically not included in standard mobile home insurance policies. Since flooding is a common concern in many parts of Tennessee, manufactured home owners often need to purchase additional flood insurance policies, adding to their insurance costs.
Valuation Methods
Insurance companies may use different methods to determine the value of a mobile home, such as actual cash value (ACV) or replacement cost value (RCV). ACV policies consider depreciation, while RCV policies cover the cost of replacing damaged items with new ones. RCV policies tend to have higher premiums.
Tips for Managing Mobile Home Insurance Costs
Shop Around
When seeking mobile home insurance in Tennessee, it’s crucial to exercise due diligence by obtaining quotes from multiple insurance companies. While the options may be more limited compared to other types of insurance, this comparison process allows you to uncover potential cost-saving opportunities, uncovering variations in coverage and premium rates among providers.
Mitigate Risks
Enhancing the storm resistance and security of your manufactured home is not only a wise safety precaution but can also translate into potential cost savings on your insurance premiums. Insurance companies often reward proactive homeowners who invest in storm-resistant improvements, such as reinforced roofing, impact-resistant windows, and hurricane straps, by offering discounts that reflect the reduced risk of severe weather-related damage.
Additionally, security measures like installing smoke detectors, security systems, and deadbolt locks not only makes your mobile home safer but can also lead to lower insurance premiums, as insurers recognize the reduced likelihood of theft or vandalism.
Bundle Policies
Opting for a multi-policy approach by bundling your manufactured home insurance with other coverage, such as auto or umbrella insurance, can be a strategic financial move. Insurance providers often offer substantial discounts to policyholders who bundle their insurance needs with them, as it not only simplifies the insurance process but also solidifies customer loyalty.

Maintain a Good Claims History
Maintaining a clean claims history is paramount when it comes to managing mobile home insurance costs. Insurance providers often view frequent small claims as an indicator of higher risk, which can lead to increased premiums over time. By exercising discretion and only filing claims for significant losses or damages, manufactured home owners can demonstrate responsible insurance usage and potentially prevent their premiums from rising unnecessarily.
Mobile home insurance costs in Tennessee are influenced by a range of factors, including the state’s weather, proximity to coastal areas, the age of manufactured homes, and limited insurance provider options. However, mobile home owners can take proactive steps to manage and potentially reduce their insurance expenses. By understanding the factors that contribute to higher premiums and exploring cost-saving strategies, mobile home owners can strike a balance between comprehensive coverage and affordability in the Volunteer State.
Helpful Links:
Tennessee Department of Insurance – Mobile and Manufactured Home Insurance
Federal Emergency Management Agency (FEMA) – Flood Insurance
Tennessee Windstorm Insurance Association
Tennessee Department of Insurance – Factors Affecting Homeowners Insurance Premiums