Landlord insurance in Texas
A standard homeowners policy probably won't cover it if a tenant lives there.
What it covers
- The rental house itself, plus fences, sheds, and detached garages
- Lost rental income while the property is repaired after a covered loss (loss of rents, included on most DP-3 policies)
- Liability if a tenant or guest is injured on the property (added by endorsement on most dwelling policies)
- Appliances and furnishings you provide, like a fridge or washer (optional contents coverage)
- Wind and hail damage, subject to the wind/hail deductible (coastal properties may need TWIA)
- Legal defense for covered liability claims, when liability coverage is included
How it works in Texas
A landlord policy, sometimes called a dwelling fire policy or DP-3, covers a house you own but don’t live in. It’s built for the risks that come with tenants: more wear, less supervision, and liability for people who aren’t your family.
The Texas-specific parts look a lot like a home policy. Wind and hail usually carry a percentage deductible, often 1% to 5% of the dwelling limit. Roof age and condition affect both the price and whether the carrier will write the property at all. Older roofs may be covered at actual cash value rather than replacement cost. And flood is excluded on a standard policy, so a rental near a bayou or creek needs its own flood policy.
Loss of rents is the coverage landlords most often skip and most often regret. After a storm or fire, repairs in Texas can drag on for months while contractors are backed up. Loss of rents replaces that rental income, up to the policy limit, during that stretch.
Liability is the other piece. If a tenant’s guest is hurt on a loose step, you’re the one they’ll look to. Landlord policies can include liability coverage, and we’d recommend it. If you own more than one property, an umbrella on top is worth a conversation.
What changes your price
- The roof: age, material, and condition
- Where the property is and how it’s built
- Whether it’s a single-family house, duplex, or fourplex
- Your deductibles, especially wind/hail
- Loss of rents limits and how many months you want covered
- Claims history on the property and on you
What we’ll ask you
- The property address, year built, and roof age
- Whether it’s currently rented, vacant, or about to turn over
- Monthly rent, so we can size loss of rents correctly
- Any updates to plumbing, electrical, or HVAC
- If you have more than one rental, a list of all of them
We’ll also ask whether your tenants carry renters insurance. If they don’t, we can help with that too.
Why go through an independent agent
Rental property is where carrier appetite swings the most. One carrier will write a 1975 house with a 15-year-old roof, another won’t touch it. One prices duplexes well and refuses fourplexes. We keep track of which carriers are currently writing what in Texas, which saves you from filling out five applications to get one yes.
We also look at the whole picture. Your rental, your own house, your auto, and an umbrella are all connected when it comes to liability. Placing them so the limits line up, and so nothing falls between two carriers, is the kind of thing an agent does and a website doesn’t.
Common questions
Can I just keep my homeowners policy on a house I'm renting out?
Usually not. Homeowners policies are written for owner-occupied homes, and most limit or exclude coverage once the house is rented to someone else. If you've already moved out and a tenant is in, tell us right away so we can switch it to a landlord (dwelling fire) policy before there's a claim.
Does landlord insurance cover my tenant's belongings?
No. Your policy covers the building and, if included, your liability. Your tenant's furniture, electronics, and clothes are their responsibility, which is why many Texas landlords require renters insurance in the lease. We can write that for your tenant too.
What is loss of rents coverage?
If a covered loss, like a kitchen fire, makes the house unlivable, loss of rents replaces the income you'd have collected while it's being repaired. Most policies cap it at a set number of months or a dollar amount. Given how long repairs can take after a big Texas hailstorm, we usually suggest not going with the minimum.
What if the property is vacant between tenants?
Most landlord policies have a vacancy clause, often 30 or 60 days, after which some coverages shrink or stop. If a house will sit empty longer than that, whether for renovations or a slow rental market, let us know. There are vacancy endorsements and short-term policies for that situation.
I own several rentals. Can they go on one policy?
Often yes. Some carriers will schedule multiple properties on one policy, which simplifies billing and can help with pricing. Once you're past a handful of units or into small apartment buildings, it may make more sense to move to a commercial property policy. Ask us where that line is for your properties.
This page is general information about landlord insurance in Texas, not a description of any specific policy. What a policy covers, excludes, and pays is set by the policy documents the carrier issues, which control if anything here differs. Coverage availability and terms vary by carrier and by risk, and can change after this page was written. How we write and check these pages.
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