Protecting Your Manufactured Home in a Texas Community: A Complete Guide to Mobile Home Insurance
Manufactured homes offer affordable living in a state where housing prices continue to rise. For thousands of Texans, life inside a land-lease community—where the home is owned, but the land is rented—means access to affordable housing, friendly neighbors, and shared amenities. But one area that many homeowners overlook, until it’s too late, is insurance.
Mobile home insurance for manufactured homes in Texas isn’t a one-size-fits-all product. Mobile Buy Buy, a manufactured home broker specializing in helping buyers and sellers transact used manufactured homes, recommends all owners have insurance. It differs significantly from homeowners insurance for site-built houses. If you live in a Texas manufactured home park, the legal classification of your home, the fact that you lease land, and your exposure to risks like hail, windstorms, and fire all make mobile home insurance a unique necessity.
In this guide, we’ll break down how mobile home insurance works in Texas, what it typically covers, how to choose the right policy, and why it’s especially important for residents in land-lease communities.
Understanding the Legal Classification of Manufactured Homes
The first thing to understand about manufactured home insurance in Texas is how your home is legally classified. This determines both the type of insurance you’ll need and how claims are processed.
- Manufactured homes (built after June 15, 1976) that are not affixed to permanent foundations and do not include land ownership are generally treated as personal property.
- Homes installed on land owned by the homeowner and converted to real property through the Texas Department of Housing and Community Affairs (TDHCA) are eligible for traditional homeowners insurance (HO-3 or HO-7).
- In most land-lease communities, manufactured homes are personal property, and require mobile home or dwelling fire policies, not standard homeowners insurance.
Knowing your home’s classification will help you shop for the right policy and avoid coverage gaps.
Why Insurance Matters in Land-Lease Communities
Texas is no stranger to extreme weather. Whether it’s hail in Dallas-Fort Worth, hurricanes near Houston, or straight-line winds across the Hill Country, mobile homes are particularly vulnerable due to their lighter construction and elevated position.
If you live in a land-lease park, your risks may also include:
- Fire (especially if units are close together)
- Wind damage
- Falling trees
- Park infrastructure failures (power, water, sewer)
- Liability issues with guests or neighbors
Without proper insurance, a single storm or accident could leave you responsible for tens of thousands in repairs or medical bills. While the park may have its own liability policy, it rarely covers your personal unit or belongings.
What a Typical Mobile Home Insurance Policy Covers
Mobile home insurance policies for personal property units in Texas often fall under DP-1 (basic dwelling fire) or special mobile home insurance forms designed specifically for manufactured housing.
Here’s what these policies typically include:
1. Dwelling Coverage
This protects the physical structure of your home against named perils such as:
- Fire
- Wind
- Hail
- Lightning
- Explosion
- Vandalism
Some insurers offer replacement cost coverage, which pays to repair or replace your home at today’s prices. Others use actual cash value (ACV), which factors in depreciation and may leave you underinsured.
2. Personal Property Coverage
Covers your belongings inside the home, such as:
- Furniture
- Appliances
- Clothing
- Electronics
Limits may be set between $20,000 and $50,000 depending on the policy, with sub-limits for certain categories like jewelry or firearms.
3. Liability Coverage
If someone is injured on your property—such as tripping on your steps—you may be sued. Liability insurance protects you by covering:
- Legal fees
- Medical bills for third parties
- Court judgments up to your limit (typically $50,000 to $300,000)
4. Additional Living Expenses (ALE)
If your home becomes uninhabitable due to a covered peril, ALE coverage helps pay for:
- Temporary housing (e.g., hotel or rental unit)
- Meals
- Relocation costs
5. Detached Structures
Covers other buildings on the lot you own—such as:
- Sheds
- Porches or decks
- Carports
Note: In a leased-lot community, coverage may exclude structures unless specifically added.
Common Exclusions in Mobile Home Insurance
Understanding what isn’t covered is just as important as knowing what is. Many mobile home policies exclude:
- Flood damage (must be covered by a separate FEMA or private flood policy)
- Earthquake damage (can often be added as a rider)
- Pest or rodent infestations
- Wear and tear, rust, or mold
- Damage due to neglect or lack of maintenance
- Business-related losses
In coastal areas, policies may also exclude windstorm or hail coverage unless purchased separately through the Texas Windstorm Insurance Association (TWIA).
Policy Types for Texas Mobile Homes in Parks
Manufactured homeowners in Texas typically fall into one of three insurance types:
1. DP-1 Basic Dwelling Fire
- Named peril only
- ACV payout
- Low-cost but limited
- May require frequent endorsements to be adequate
2. HO-7 / HO-3 Modified for Manufactured Homes
- Available if the home is titled as real property
- Broader coverage (open perils)
- Typically requires land ownership and a permanent foundation
3. Specialty Mobile Home Policies
- Designed by companies like Foremost, American Modern, Assurant, or Standard Casualty
- Can include replacement cost, broader liability, and endorsements for skirting, carports, awnings
- Often tailored to land-lease community residents
Cost of Mobile Home Insurance in Texas
The average annual premium for mobile home insurance in Texas ranges from $400 to $1,200, depending on:
- Value of the home
- Location (especially coastal or hail-prone zones)
- Age of the home
- Foundation type (pier & beam vs. slab)
- Coverage limits and deductibles
- Credit score and claims history
In areas like San Antonio or Austin, premiums may be lower than in Corpus Christi or Galveston, where windstorm coverage dramatically increases costs.
Optional Endorsements Worth Considering
You can often enhance your mobile home policy with endorsements (optional add-ons). Common ones in Texas include:
- Trip collision coverage (if moving the home)
- Skirting, decks, awnings (otherwise may be excluded)
- Mechanical breakdown
- Water backup of sewer or drain
- Golf cart or ATV liability
- Inflation protection (to adjust coverage with market changes)
Check if your park requires insurance on additional structures or modifications to meet their rules.
Insurance Requirements by Lenders and Communities
If you have a chattel loan, your lender will almost always require:
- Physical damage coverage equal to the loan amount
- Liability limits (often $100,000+)
- Deductibles not exceeding a certain threshold
- Proof of insurance before closing
Your park may also require:
- Minimum liability coverage
- Park named as “additional insured” on the policy
- Insurance on outbuildings, carports, or skirting
It’s important to review your park lease agreement and loan documents to understand what’s mandatory.
How to Shop for the Right Insurance Policy
1. Use a Specialist
Standard auto or homeowners insurance agents may not offer mobile home coverage or may lack knowledge of community-specific requirements. Look for insurers like:
- Foremost (owned by Farmers)
- American Modern (used by Vanderbilt Mortgage)
- Assurant
- Standard Casualty (Texas-based)
- Tower Hill Specialty
2. Compare Multiple Quotes
Rates and coverage vary widely between insurers. Be sure to compare:
- Coverage limits
- Deductibles
- Replacement cost vs. actual cash value
- Exclusions
- Customer reviews and claims handling
3. Bundle with Auto or Other Policies
Some insurers offer mobile home coverage only as part of a bundle, potentially saving you money.
Claims Process: What to Expect
If your home is damaged, follow these steps to maximize your insurance payout:
- Contact your insurer immediately
- Start the claim process early
- Document everything
- Take photos of the damage
- Save receipts for any repairs or temporary housing
- Mitigate further damage
- Tarp roofs, turn off utilities, and prevent mold
- Work with the adjuster
- Walk them through the damage when they visit
- Ask for a detailed explanation of any denied claims
Claims for manufactured homes may process more quickly than site-built homes—but payouts may be smaller, especially for older units.
Insurance and the Age of Your Home
Older manufactured homes are more difficult to insure. Most insurers have restrictions:
- Over 20 years old: May require condition inspection or surcharge
- Pre-1976 homes: Often uninsurable unless completely rehabbed
- Homes missing the HUD data plate or serial number may be rejected outright
If your home is older, specialty insurers like Standard Casualty or Foremost may still write policies—but often at higher premiums.
Tips for Lowering Your Premium
- Install storm shutters or reinforced roofing
- Anchor or strap your home to reduce wind risk
- Maintain smoke detectors and fire extinguishers
- Raise your deductible if you can afford it
- Bundle with other policies
- Avoid small claims to keep your record clean
- Improve your credit score
Insurance During a Move or Renovation
If you’re moving your home to a new park, standard policies do not cover transportation damage. You’ll need:
- Trip transit coverage (usually a separate short-term policy)
- Collision and cargo insurance from the moving company
If you’re renovating, notify your insurer—especially for major upgrades like roofing, plumbing, or HVAC. These may affect your premium or eligibility for replacement cost coverage.
What Happens If You Don’t Insure?
While insurance isn’t legally required if you own your home outright, going uninsured exposes you to major financial risk. Common consequences include:
- Total loss from a fire or tornado with no way to rebuild
- Lawsuits if someone is injured on your property
- Park violations or eviction if insurance is a lease requirement
- Loss of your loan balance protection if the home is destroyed while still financed
Peace of mind is worth the relatively modest annual cost of coverage.
Final Thoughts: Insurance as Protection and Leverage
Insurance isn’t just a checkbox for closing paperwork or park compliance. For Texas manufactured home residents—especially those in land-lease communities, like those sold by Mobile Buy Buy —it’s a critical financial safety net.
Whether you face a severe storm, an unexpected fire, or a guest injury, a solid mobile home policy protects your savings, your family, and your long-term housing security. In some cases, it may even help increase resale value by keeping your home in good condition and documentation ready for potential buyers.
Take the time to understand your options, compare coverage carefully, and ask questions before signing a policy. The time you spend today could save you thousands in the future.
Disclaimer:
This article is for general informational purposes only and does not constitute legal, financial, or insurance advice. Mobile Buy Buy is not a licensed insurance provider. Always consult a licensed insurance agent or advisor to determine the appropriate coverage for your home and circumstances.