Landlord Insurance in Texas

What is landlord insurance? 

Texas landlords have multiple risks to protect against. An accident on the property, structural fire or break-in could have devastating costs, and these are just some of what can happen. To help protect against perils such as these, there’s landlord insurance.

Landlord insurance offers tailored coverage for rental properties. Policies may help protect the landlord, the property, and the income received from tenants.

Who in Texas is landlord liability insurance right for?

Most Texas landlords should have landlord liability insurance, as anyone with a rental property could be sued. Coverage for the property and income received is also broadly recommended. In many cases, coverage for the property is likely required assuming a property is financed.

Thus, individual landlords, real estate groups, realty businesses and property managers might all need a landlord policy.

What coverages are available through landlord policies?

Landlord policies are able to protect against multiple risks because they offer multiple coverages. The coverages found within a policy often include:

• Property Damage Insurance: This might insure physical buildings and landlord-owned items on the property, such as appliances, lawnmowers and other equipment. Usually protects against various causes of loss or damage.
• Landlord Liability Insurance: This might insure landlords against legal costs and settlements stemming from injuries occurring on the property that lead to litigation. Even if a tenant is responsible for an injury, the landlord is still frequently sued.
• Legal Assistance Insurance: This might pay legal expenses unrelated to liability claims that fall under landlord liability coverage. For example, the costs associated with securing a judgment or eviction may be paid.
• Loss of Rental Income Insurance: This might offset lost revenue, if the rental unit requires rebuilding due to a covered loss that prohibits leasing it for the time.
• Rent Guarantee Insurance: This might cover lost revenue, if one or more tenants consistently fail to pay their rent.
• Commercial Umbrella Insurance: This might provide additional coverage that builds upon the landlord liability, and any other liability protections, that a policy has.

Can landlord policies cover commercial or mixed-use properties?

Landlord policies generally aren’t suitable for commercial properties such as retail centers or office buildings. These buildings have different tenants, and the residentially focused coverages in landlord policies won’t necessarily provide all of the protection that’s needed. Instead, commercial property insurance is probably a better choice for retail, office and other commercial buildings.

When insuring mixed-used investment properties, the coverages found in landlord policies are probably needed. But, they likely won’t provide all of the protection that the commercial aspects require. Investors with mixed-use properties should work with an insurance agent specializing in landlord and commercial property insurance, to find a policy that’ll provide the extensive protections that these properties should have.

Do homeowners need landlord liability insurance when renting out a bedroom?

Homeowners who rent out a bedroom or in-law apartment should check their liability coverage. A homeowners insurance policy might not protect against rental-related lawsuits as a standard protection, but this doesn’t necessarily mean that a full landlord policy is needed.

Some homeowners policies may have an add-on feature that covers rentals within the insured home, with coverage applying to either short-term or long-term rentals. Many short-term rental platforms offer coverage for rentals booked through the site.

If coverage isn’t available through a homeowners policy or rental platform, then a landlord policy could be necessary. This is fairly uncommon, however.

A knowledgeable agent who’s familiar with landlord liability insurance can help homeowners determine how to best get coverage for renting a spare room.

Do landlord policies cover tenants while they’re leasing?

Landlord policies generally don’t provide tenants with coverage. Tenants should be encouraged to look at renters insurance options.

Where can landlords in Texas find landlord insurance? 

If you have one or more rental properties in Texas, contact the independent insurance agents at Steve White Insurance. Our agents can help you find the best policy for your properties, and we’re able to recommend the best landlord insurance policy regardless of what insurance company is offering it.