Department of Labor and Regulation

Title - Division of Insurance email the Division of Insurance

Fire Damage — Mobile Home

Previously, mobile homes were often not considered real property and therefore, an insurance company could pay the local market value of the mobile home if it was destroyed.

The law changed and most mobile homes are now considered to be real property. Effective July 1, 2002, that law extended to mobile homes with a model year of 1977 or newer. This is an important distinction, as the law requires that real property wholly destroyed due to fire, lightening or tornado must be paid at the limits of the policy, regardless of the market value. So, if the mobile home in question was insured at $70,000 and it is considered real property under the law, then the full $70,000 would be payable under the policy.


Division of Insurance
445 E. Capitol Avenue
Pierre, SD 57501
Tel. 605.773.3563
Fax. 605.773.5369