Mobile home insurance in Texas

No, mobile home insurance isn’t required by law in any state, including Texas. However, if you have a mortgage or live in a mobile home community, your lender and/or property manager may require you to maintain a policy. 

You may still want a Texas mobile home policy even if you aren’t required to have one. After a covered loss, your policy can help cover the cost of damage-related repairs or replacements. Without coverage, you’d likely need to cover those expenses on your own.

Like other Gulf Coast states, Texas’s mobile home insurance rates are influenced by annual hurricane risks, as well as tornadoes and wildfires. Your own insurance rates will depend on where you live in the state, the age of your home, your home’s characteristics, and other factors. 

Mobile home insurance typically does not cover the following losses in Texas: 

• Wind and hail damage in certain areas. Your mobile home insurance typically won’t cover wind and hail damage if you live on the Texas coast or in Harris County on Galveston Bay. Coastal residents can buy wind and hail coverage from the Texas Windstorm Insurance Association (TWIA). 

• Flooding. A standard mobile home insurance policy will not cover flooding, such as that caused by overflowing bodies of water or storm surges. To get coverage for flood damage, you will need to buy a separate flood insurance policy or add a flood endorsement to your existing mobile home insurance policy. 

• Wear and tear and neglect. Your policy won’t pay to replace components, systems, or materials, like worn pipes, that are compromised by normal wear and tear or neglect.  

• Damages caused by earthquakes and sinkholes. Mobile home insurance does not cover earthquakes, sinkholes, or other ground shifts. You’ll need a separate policy or endorsement to cover each type of damage. 

• Damage that occurs while transporting your home. Your policy will not cover damage that occurs while your mobile home is in transit. 

Your coverage needs will depend on several factors, including the value of your property and belongings. Keep the following in mind when shopping for mobile home insurance in Texas:

• Dwelling coverage. It’s a good idea to cover your mobile home for the total replacement cost in case of a complete loss. This helps ensure you can afford to replace your home after a catastrophic event. 

• Personal property coverage. Personal property limits are frequently set to at least 50% of your dwelling coverage limit. You can typically increase or decrease coverage based on the value of your belongings and coverage preferences.  

• Other structures coverage. Mobile home insurance can cover other structures on your property, such as a shed or detached garage. Coverage is usually set to at least 10% of your dwelling limit, but you can purchase more coverage if needed. 

• Personal liability coverage. This part of your policy provides financial protection if someone is injured on your property (and you’re at fault) or if you or a covered household member damages someone else’s property. It also covers legal expenses if you are sued over the incident. You should have enough personal liability insurance to cover the value of your assets.  

• Medical payments coverage. Home insurance often provides $1,000 to $5,000 in medical payments coverage in case someone gets hurt on your property, regardless of who is at fault. 

• Loss of use coverage. If your home becomes uninhabitable after a covered loss, this part of your policy can help you pay for additional living expenses, such as lodging and meals. Loss of use coverage is typically set at 20% of your dwelling limit. 

Mobile home owners in Texas should consider the following additional coverages:

• Wind and hail coverage. If you live in some regions of Texas, your mobile home insurance policy may not cover wind or hail damage. You must buy wind coverage for financial protection from this type of damage. 

• Flood insurance. Home insurance does not cover damage caused by flooding. Consider purchasing flood insurance, especially if you live near a body of water or an area prone to flooding. 

• In-transit coverage. If you ever plan to move your mobile home to another location, you may want to add an endorsement to your policy to ensure you’re covered while your home is on the move. 

Here's what makes mobile home insurance and traditional home insurance similar: they both cover your home’s structure, your personal belongings, and your personal liability. They also both usually cover damage caused by any hazard (called open-perils coverage) — unless the cause of damage is specifically excluded (like flood damage).

But here’s what makes them different: Insurers have found that manufactured homes represent a different risk than traditionally built homes. As a result, mobile home insurance can be more expensive than traditional home insurance. 

In Texas, our policies can be written as either replacement cost value (RCV) or actual cash value (ACV). ACV policies are cheaper but payouts reflect the depreciation of your property (meaning they subtract for age and wear); RCV coverage pays to replace items with new items of like kind and quality at today’s prices, ensuring a smoother recovery.

Note: Modular homes are another type of home altogether. They’re usually built to the same standards as traditional homes, so they’re often insured with an HO-3 home insurance policy.