Wildfire Threatens Mobile Homes as 40% of California Owners Go Uninsured

Nicole had twenty years of memories in her Pacific Palisades mobile home. The retired florist paid $340,000 for what she called "the kind your grandma would own," just a crosswalk away from the beach. She tended plants in her fenced yard and joined neighbors for water aerobics in the community pool.

Then January 2025 arrived. The Palisades Fire swept through coastal Los Angeles with devastating speed, obliterating not just celebrity mansions but two seaside mobile home parks where hundreds of retirees and longtime residents had built their lives. Within hours, the Palisades Bowl Mobile Estates and Tahitian Terrace were gone, leaving residents scattered across the state, staring into space, wondering what comes next.

For many, the financial devastation extends far beyond the flames. A shocking number discovered they had no coverage at all.

The Coverage Gap Nobody Talks About

Recent data from the Terner Center for Housing Innovation reveals a troubling reality: approximately 40% of California mobile home owners without mortgages lack any coverage whatsoever. That represents nearly 100,000 households gambling with their primary residence and, often, their life savings.

"You're in what the state is saying is one of the worst possible areas to have a home, and me as an insurer with a bias against manufactured homes, I'm looking at that and thinking that's just a box of matches sitting in the middle of a ring of fire," explained Ryan, a policy advocate for Neighborhood Partnership Housing Services, speaking with CalMatters about why carriers remain reluctant to write policies.

This reluctance translates directly into rising premiums and shrinking options for mobile home owners across the state.

Understanding Mobile Home Vulnerability

Mobile homes face unique challenges that traditional homeowners rarely consider. Unlike site-built homes, manufactured housing often sits in designated high-risk fire zones with limited defensible space. Many California mobile home parks cluster dozens of units in close proximity, meaning a single ignition can cascade through an entire community within minutes.

The Urban Institute reports that nearly 80% of manufactured homes nationwide occupy areas at high risk for wildfires, floods, or other climate hazards. In California specifically, more than a third of manufactured housing stock was built before 1976, predating modern safety standards and making these structures especially susceptible to fire damage.

Premium increases reflect this reality. According to the Terner Center, mobile home coverage costs jumped from approximately $400 to $500 per $100,000 of covered value between 2018 and 2021, the fastest increase among residential policy types. The January 2025 fires will likely accelerate this trend further.

Additionally, the distinction between owning your home and leasing your lot creates complications that traditional homeowners never face. When disaster strikes, mobile home residents often discover their path to recovery depends entirely on decisions made by park owners.

Real Financial Consequences

The financial mathematics of uninsured mobile home loss are brutal. Greg Garber, a hardwood flooring contractor who lost his Pacific Palisades home in January, paid $150,000 in 1999 for a property he expected to pass down to his children.

"That's what we all signed up for and put our life savings into: digs at the ocean," Garber told CalMatters. Losing it, he said, was "like losing a loved one."

Without adequate coverage, families face complete loss of their housing investment. Recovery depends on FEMA assistance, state programs, and personal savings, resources that often fall dramatically short of actual replacement costs. The 2018 Camp Fire in Paradise demonstrated this reality, as only five of thirty mobile home parks have been rebuilt seven years later.

Steps to Protect Your Investment

Documentation provides your first line of defense. Create a comprehensive inventory of your home and belongings, including photographs, receipts, and serial numbers for major items. Store copies digitally and with a trusted friend or family member outside your immediate area. Review your home coverage options annually to ensure limits reflect current replacement costs.

Understand the difference between actual cash value and replacement cost coverage. Actual cash value policies deduct depreciation, potentially leaving you with a fraction of what you need to replace a home lost to fire. Replacement cost coverage, while more expensive, provides funds to rebuild without depreciation penalties.

Request your policy's wildfire risk assessment. Many carriers use FireLine scores to evaluate properties. Understanding your score helps identify mitigation steps that might qualify you for better rates or expanded coverage options.

Managing Your Exposure

California's FAIR Plan exists as coverage of last resort for homeowners denied private market policies, including mobile home owners. While FAIR Plan coverage carries limitations and higher costs, it provides essential protection when alternatives disappear. Understanding California coverage requirements helps you make informed decisions about this option.

Physical mitigation matters too. Create defensible space around your unit by clearing vegetation, debris, and combustible materials. Install fire-resistant skirting if possible. Coordinate with park management on community-wide fire prevention measures.

Consider loss of use coverage carefully. This protection covers temporary housing costs if your home becomes uninhabitable. Given the extended timelines for mobile home park rebuilding, adequate loss of use limits can mean the difference between stable temporary housing and months of uncertainty.

Building a Complete Protection Strategy

Your mobile home represents both shelter and investment. Proper protection requires understanding the specific coverages that address manufactured housing risks: dwelling protection, homeowner coverage, liability protection, and additional living expense provisions.

Many California mobile home owners discover gaps in their protection only after disaster strikes. A comprehensive policy review identifies these vulnerabilities before they matter. Working with an agent who understands manufactured housing helps ensure your coverage matches your actual exposure.

Community and Recovery

Mobile home communities often develop strong social bonds. The January fires scattered neighbors across California, severing connections built over decades. Yet these same community ties can support recovery when documentation exists and protection plans are in place.

California legislators have proposed new protections for mobile home owners in fire zones, including temporary rent controls and strengthened rights to rebuild. While policy changes take time, proactive protection remains your most reliable path to security. The residents of Paradise learned this lesson; seven years later, many still search for permanent housing.

Taking Action Today

Nicole, the retired florist from Palisades Bowl, hopes her neighborhood will return "to its former glory, but better." That optimism requires preparation. The 40% of mobile home owners currently without coverage face unnecessary risk that proper planning can address.

Young Douglas Insurance serves mobile home owners throughout California's Inland Empire communities. Our team understands the specific challenges manufactured housing faces and can help you build appropriate protection for your situation. We can help you learn more about home insurance options.

Sources

• CalMatters (February 2025)

• Terner Center for Housing Innovation: The California Home Insurance Challenge in Eight Charts (December 2025)

• Urban Institute (2025)

Disclosure: This blog provides general information only and is not a substitute for professional insurance advice. Policy terms, conditions, and availability vary. Contact a licensed agent to discuss your specific coverage needs.