---
title: Mortgage Protection Insurance in Texas | Coverfolk
url: https://coverfolk.com/states/texas/mortgage-protection
updated: 2026-10-08
---

# Mortgage protection insurance in Texas

Keep the house paid for your family. Local numbers and Texas rules.

Updated October 8, 2026[Fact checked](/editorial-standards)

The short answer

About 3,959,000 Texas homes still have a mortgage, 55% of owned homes. The typical owned home is worth $313,200. A term policy sized to your loan keeps the house paid if you pass away.

Homes owned
:   62%

Owned homes with a mortgage
:   55%

Typical home value
:   $313,200

Median household income
:   $79,721

Census ACS 2024 one year estimates.

## How it works

Mortgage protection is life insurance sized to your home loan. The money goes to your family, not the bank, and they choose how to use it. It is not PMI, which protects the lender.

A regular level term policy can do the same job, often for less. Match the term to the years left on your loan. [Mortgage protection vs term life](/compare/mortgage-protection-vs-term-life).

## Texas cities with the most mortgages

[Frisco 73%](/states/texas/frisco)[McKinney 72%](/states/texas/mckinney)[Atascocita 72%](/states/texas/atascocita)[Round Rock 71%](/states/texas/round-rock)[Killeen 71%](/states/texas/killeen)[League City 69%](/states/texas/league-city)[Pearland 67%](/states/texas/pearland)[Denton 67%](/states/texas/denton)

## Texas rules

* Free look: set by policy
* Grace period: one month
* Guaranty protection: $300,000

[Mortgage protection calculator](/mortgage-protection-calculator)

## Common questions

Is mortgage protection insurance required in Texas?

No. Lenders can require homeowners insurance and sometimes PMI, but not mortgage protection life insurance. It is your choice.

How much mortgage protection do I need in Texas?

Start with your loan balance. The typical owned home in Texas is worth $313,200. Use our calculator to add a cushion.

What if my insurer fails in Texas?

The Texas Life & Health Insurance Guaranty Association protects up to $300,000 in death benefits per person.

## Sources

1. [Census ACS 2024 1 year estimates, table based summary file](https://www2.census.gov/programs-surveys/acs/summary_file/2024/table-based-SF/)
2. [CFPB: What is private mortgage insurance?](https://www.consumerfinance.gov/ask-cfpb/what-is-private-mortgage-insurance-en-122/)
3. [New York DFS: Types of Life Insurance Policies](https://www.dfs.ny.gov/consumers/life_insurance/types_of_policies)
4. [Texas Life & Health Insurance Guaranty Association](http://www.txlifega.org)