Getting Started - Guidelines for Texas
Installers/Transporters:
Guidelines to Getting Started in Texas
In addition to attending the three day Retailer/ Broker / Installer class required by the TDHCA and obtaining your installer certificate, Installers must complete four other requirements before a Texas Installers License is granted.
These include:
- Acquisition of an Installer Bond
The Bonding Company requires financial statements, both personal and business. If this is a new venture, please provide a business plan (projected revenues, expenses, sources of business, etc.) as well as a personal financial statement. Husband and wife both need to sign the application writing Indemnitor next to their signature. - Purchase of General Liability Insurance
Give Mobile a call and we will give you a quote over the phone. If it sounds good to you, we will complete the application while we talk on the phone and mail it to you for your review and signature. You are only required by the state to carry $300,000 of liability coverage. However some of your future customers will require you to carry higher limits. We suggest you obtain at least $1,000,000 of coverage. - Purchase of Toter Liability Insurance
Mobile has several companies from which to choose. Your driving experience, driving radius, loss history, drivers driving records, and liability limits determine which company will provide the best coverage and premium for you. We will guide you through the Texas Department of Transportation Application and the filing required by the Department. If you are satisfied with our quote, we will complete the application on the phone. The state of Texas requires a minimum liability limit of $500,000 per occurrence. Mobile recommends you carry limits of at least $1,000,000 per accident. - Purchase of Cargo Insurance
Your future customers will require you to carry comprehensive cargo insurance coverage. Call Mobile and we will give you a quote on the phone. We will show you the advantages of our cargo program such as multi-section coverage, unattended cargo coverage, and all risk coverage.
Mobile's insurance professionals make the process easy for you.
*Insurance premium financing at competitive rates is available.
Installers & Transporters:
Five Common Questions Asked by New Business Owners
- What is an installer bond and why do I need one?
An installer bond is a financial guarantee to the State of Texas that you will take care of your contractual obligations to the consumer. Should you fail to do so, the state can release the bond money or a portion of it to the consumer. The bonding company will then look to you for reimbursement. A $25,000 installer bond is required by the state of Texas to do business here. To be eligible for the bond, you must show the bonding company that you could repay them the $25,000 in the event the bonding company paid someone on your behalf. - How long will it take me to get the bond, insurance, and state license I need to do business in Texas?
Approximately two weeks. The TDHCA (Texas Department of Housing and Community Development) projects that it will take ten (10) days or so on average to get your license done once you submit your certificates of insurance, class completion certificate, and bond. You should plan for about three days to get your bond and insurance. However, the two week plan can be beaten with complete applications and an in-person trip to the TDHCA. - What are the license, bond, and insurance going to cost me?
Prices vary dramatically depending on your particular location, operation, driving radius, size, type vehicles, and experience. That said, a typical one toter operation with a good driving record would pay about $11,000 / year for the license, Department of Transportation filing fees, installer bond, cargo insurance, general liability insurance, and commercial auto (toter) insurance. Most of these costs can be financed with about 25% down. - What is cargo insurance and how much do I need?
This insurance protects the homes you transport. You need as much insurance as the most expensive home you will be transporting. You should count the total value of a multi-section home even though the sections are transported separately because many manufacturers won't rebuild one section of a home. - What does general liability insurance cover? Do I have to have it?
Broadly defined, general liability insurance is designed to cover the non-auto related negligence of your business operations. For instance, if you negligently install a home, and because of this, that home burns to the ground killing two occupants, you would likely be liable for all damages. The State of Texas requires you to carry limits of at least $300,000.
