What’s the Difference and Which One Do You Need?

For many Texans, purchasing a manufactured home offers a practical and affordable path to homeownership. Many savvy buyers have realized the huge benefit of buying a used manufactured home vs a new one, which is what Mobile Buy Buy recommends. Whether situated on private land or in a land-lease community, these homes serve as long-term residences for families, retirees, and working individuals across the state. However, protecting your investment is critical—and that’s where both mobile home insurance and mobile home warranties come into play.

At first glance, these terms might sound interchangeable. After all, both provide peace of mind and financial protection. But they serve very different purposes.

This article breaks down the core differences between mobile home insurance and mobile home warranties in Texas. We’ll cover what each one includes (and excludes), how much they cost, whether they’re legally required, and which situations warrant one, the other, or both.

What Is Mobile Home Insurance?

Mobile home insurance is a financial contract that protects against sudden, external events that can damage your home, belongings, or result in personal liability. It is designed for unexpected risks—like fire, windstorms, theft, or liability claims—rather than the gradual wear and tear of appliances or systems.

Key Features:

• Covers the structure of the home (dwelling coverage)
• Includes liability protection for accidents on your property
• May include coverage for personal property and loss of use
• Usually required by lenders if you have a loan
• Typically renewed annually

In Texas, mobile home insurance is crucial because of the state’s unique environmental risks, such as hailstorms, hurricanes, and tornadoes.

What Is a Mobile Home Warranty?

A mobile home warranty (also called a home service contract) is a repair plan that covers the breakdown of major home systems and appliances due to wear and tear, not external damage. It’s similar to a manufacturer’s warranty, but more comprehensive and renewable after the first year.

Key Features:

• Covers appliances like the stove, refrigerator, washer/dryer
• Includes systems like HVAC, plumbing, electrical
• Offers repair or replacement for mechanical failures
• Often optional and not required by lenders
• Typically renewed annually or monthly

Warranties are especially appealing to homeowners who want predictable repair costs and fewer surprises when systems inevitably fail over time.

Major Differences Between Insurance and Warranty

Let’s break down how these two forms of protection differ across various criteria:

What Does Each Cover?

Mobile Home Insurance Coverage

1. Dwelling (Home Structure)
   Protection against external events like wind, fire, hail, or explosions.
2. Personal Property
   Reimbursement for stolen or destroyed belongings such as furniture, clothing, electronics.
3. Liability Protection
   Covers medical bills and legal costs if someone is injured on your property.
4. Loss of Use (Additional Living Expenses)
   Pays for hotel or temporary housing if your home becomes uninhabitable.
5. Other Structures
   May include carports, sheds, decks, or fences—if specifically listed in the policy.

Mobile Home Warranty Coverage

1. Major Appliances
   Includes refrigerator, stove, dishwasher, washer/dryer, and microwave.
2. Home Systems
   Covers plumbing, electrical, water heater, and HVAC.
3. Optional Add-ons
   Some plans include coverage for spas, septic systems, ceiling fans, and more.
4. Service Calls
   Warranties often include a repair technician visit for a flat service fee.

Real-Life Example: Why the Difference Matters

Imagine this:

• A hailstorm hits your park in Dallas, cracking your skylight, damaging the roof, and letting water into your walls.
  → This is an insurance claim—not covered by a home warranty.
• A few months later, your air conditioner breaks down during a hot July. It’s 10 years old and fails due to wear and tear.
  → This is a warranty claim—not covered by home insurance.

Legal Requirements in Texas

• Mobile Home Insurance:
  Required if you financed your home through a lender (chattel loan or mortgage). Some land-lease communities also require proof of liability coverage even if your home is paid off.
• Mobile Home Warranty:
  Never required by law. It is optional and consumer-driven. You can choose your provider and coverage level.

Insurance is also regulated by the Texas Department of Insurance, while warranties are more loosely governed and sometimes not regulated at all—so buyer beware.

Costs: Insurance vs. Warranty in Texas

Mobile Home Insurance:

Premiums vary by:

• Age and value of the home
• Location (risk of tornadoes, hail, floods)
• Foundation type (pier & beam vs. permanent)
• Credit history and claims record
• Deductible selected

💰 Estimated Cost: $400–$1,200/year
💡 Tip: Older homes may cost more to insure or be eligible only for Actual Cash Value policies.

Mobile Home Warranty:

Pricing depends on:

• Size of home and number of systems
• Level of coverage (basic vs. premium)
• Provider and service network

💰 Estimated Cost: $300–$700/year or $30–$75/month
💵 Service Fee: Typically $75–$125 per claim
💡 Tip: Bundles with appliance-only or system-only plans can reduce the cost.

Pros and Cons

Mobile Home Insurance

Pros:

• Essential for financial protection after major loss
• Covers liability and personal property
• Legally required with most loans
• Helps after natural disasters or accidents

Cons:

• Doesn’t cover breakdowns from normal use
• May exclude windstorm or flood coverage without endorsements
• High deductibles can limit small claims

Mobile Home Warranty

Pros:

• Reduces surprise repair bills for aging systems
• Simple flat-rate service call fees
• No large deductibles
• Good for older homes with aging appliances

Cons:

• Doesn’t cover structural or weather damage
• Limited to covered items only
• Not all warranty companies are reputable
• May exclude pre-existing conditions or poor maintenance

When Should You Get Both?

Many Texas mobile home owners carry both insurance and a warranty. Why? Because each protects different aspects of the home:

• Insurance protects against the uncontrollable: hail, fire, liability
• Warranty protects against the inevitable: aging systems, worn-out appliances

This is particularly useful in:

• Older homes where HVAC and plumbing are likely to fail
• Budget-conscious households wanting to avoid $3,000 A/C repairs
• Land-lease communities where park rules don’t require structural maintenance

Best Insurance and Warranty Providers in Texas

Top Mobile Home Insurance Providers:

• Foremost Insurance (subsidiary of Farmers)
• American Modern
• Standard Casualty Company (Texas-based)
• Assurant
• Progressive (through Assurant)

These providers understand manufactured housing risks, park requirements, and local Texas weather.

Top Mobile Home Warranty Providers:

• America’s First Choice (AFC)
• Select Home Warranty
• Choice Home Warranty
• Cinch Home Services
• Liberty Home Guard

Always check whether the provider serves your zip code and allows manufactured homes in their plan. Read reviews carefully, especially about service delays and technician quality.

Key Questions to Ask Before Choosing

For Insurance:

• Is this policy designed specifically for mobile homes?
• Is it replacement cost or actual cash value?
• Are my skirting, deck, or carport covered?
• What’s the deductible?
• Does it include windstorm or flood coverage?

For Warranty:

• Are manufactured homes covered?
• Are there dollar limits per appliance or per year?
• What’s the claim process?
• Can I choose my own technician?
• Are pre-existing issues excluded?

Avoiding Common Pitfalls

Insurance Pitfalls:

• Underinsuring your home’s replacement cost
• Assuming flood or wind coverage is automatic
• Failing to notify insurer after adding a deck or room addition

Warranty Pitfalls:

• Choosing an unregulated or poorly reviewed company
• Assuming everything is covered (read the fine print)
• Ignoring coverage caps or exclusions

Final Thoughts: Which One Should You Choose?

If you’re trying to decide between mobile home insurance and a home warranty in Texas, ask yourself:

• Can I afford to rebuild my home if it’s destroyed?
• Could I pay out-of-pocket to replace my HVAC next month?

The ideal situation is to carry both:

• Insurance is essential—it protects your home from major disasters, theft, and liability.
• Warranties add convenience and predictability, especially as your systems age.

They’re not substitutes—they’re complementary tools to protect different parts of your home.

Summary Chart

Disclaimer:

This article is for informational purposes only and does not constitute legal, financial, or insurance advice. Mobile Buy Buy is not a licensed insurance or warranty provider. Readers should consult with licensed professionals before purchasing any policy or service contract.