Texas Landlord Insurance
Get a complete analysis of Texas landlord insurance costs, coverages & companies.
Written by
Christine Lacagnina has written thousands of insurance-based articles for TrustedChoice.com by authoring consumable, understandable content.
Reviewed by
Jeff Green has held a variety of sales and management roles at life insurance companies, Wall street firms, and distribution organizations over his 40-year career. He was previously Finra 7,24,66 registered and held life insurance licenses in multiple states. He is a graduate of Stony Brook University.
Find the Best Landlord Insurance Rates & Companies in Texas
Maybe you own a house in Dallas that you lease to families, or perhaps you have a couple of condos in downtown Austin that you rent out to area executives. Regardless of the type of home, if you own a property that's rented by tenants, you can benefit from having landlord insurance. This coverage is designed to protect you against losses due to tenant damage or destruction to your rental properties as well as third-party lawsuits.
Luckily, an independent insurance agent in Texas can help you find the right policy. They'll get you matched to all the landlord insurance you need to protect your investments. But first, here's a closer look at Texas landlord insurance requirements, average costs, and more.
Best Landlord Insurance Companies in Texas
As one of the largest states in the nation, Texas has no shortage of insurance companies, and many of them sell landlord insurance. That's why it's extra helpful to know exactly where to shop to find the best policies available. Here are a few of our top recommendations for the best landlord insurance companies in Texas to get you started.
- Stillwater: This insurance company sells landlord insurance and many other types of personal and business insurance. Stillwater has excellent ratings from both AM Best and the Better Business Bureau (BBB), offers coverage nationwide, and provides 24/7 claims reporting services.
- Progressive: This insurance company sells landlord insurance and many other types of personal insurance and business insurance. Progressive has outstanding financial strength, offers numerous discounts, and provides 24/7/365 customer service.
- Foremost Insurance: This insurance company sells landlord insurance and many other types of personal insurance. Foremost has excellent ratings from AM Best and the BBB, offers many discounts, and provides 24/7 claims reporting services.
A Texas independent insurance agent can shop and compare landlord insurance quotes from each of these carriers and any others that offer coverage in your area.
What Is Landlord Insurance?
Though landlord insurance is somewhat similar to homeowners insurance, it's not exactly the same. Landlord insurance considers the increased risks to property that come along with having tenants rent it out. These policies provide coverage that can reimburse you for tenant damage or destruction to rental units as well as liability protection in case a tenant, guest, or another third party sues you.
How Is Landlord Insurance Different from Home Insurance?
Landlord insurance also includes parts of business insurance. If a tenant cannot rent out one of your units for a period of time due to a covered disaster like a fire or a break-in, you could stand to lose this income. Fortunately, landlord insurance provides loss of income coverage, which can reimburse you for such occurrences.
Is Landlord Insurance Required in Texas?
Landlord insurance isn't required by law in Texas. Many landlords decide the cost of coverage is well worth it, however. Without coverage, landlords run the risk of having to pay out of their own pocket for lawsuit expenses or for repairs to their rental properties. This could cause bankruptcy for many landlords who lack insurance.
What Landlord Insurance in Texas Can Cover
You're able to design your landlord insurance policy in a way that makes the most sense for you. In Texas, the following coverage options are usually available to choose from:
- Liability insurance: This covers tenant or other third-party lawsuit expenses related to claims of bodily injury or personal property damage.
- Premises medical protection coverage: This covers medical expenses if a tenant gets injured in a covered event while living at your rental property.
- Other structures coverage: This covers losses related to the damage or destruction of detached structures (e.g., sheds, fences, etc.) against the same perils as dwelling coverage.
- Loss of income coverage: This reimburses you for lost rental income and provides a continuation of coverage for other expenses if a rental property becomes temporarily uninhabitable due to a covered loss, such as hail damage, vandalism, or a fire.
- Dwelling coverage: This reimburses you for repairs to your rental property's dwelling and attached structures if fire, smoke, vandalism, windstorms, hail, or tenants cause damage or destruction.
- Optional coverage: Some additional coverage options for landlords to choose from include rent guarantee insurance, natural disaster insurance, vandalism coverage, burglary coverage, rental property under construction coverage, building code coverage, employer liability insurance, and landlord contents insurance.
A Texas independent insurance agent can help you decide which types of coverage are right for you.
What Landlord Insurance in Texas Will Not Cover
Texas landlord insurance comes with certain exclusions that you should review before ever filing a claim. Don't expect your landlord insurance policy to cover the following:
- Loss, theft, damage, or destruction of your personal property
- Water or sewer backup damage or destruction
- Intentional or malicious acts to third parties
- Flood or earthquake damage or destruction
- Routine maintenance costs due to rental property wear and tear
While landlord insurance may not cover any of these costs as the policies come, you might be able to add endorsements to your coverage for things like flood damage, sewer backups, and more.
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Average Cost of Landlord Insurance in Texas
This year, Texas is one of the most expensive states in the country for landlord insurance. Currently, landlord insurance costs an average of $2,444 per year in Texas. However, the cost of your policy might vary based on:
- The number of rental units you own
- The age, size, and condition of your rental units
- The number of "attractive nuisances" at your rental units, such as pools
- Your claims history
- The exact location of your rental units
The good news is that you might be able to reduce your premium rates through Texas landlord insurance discounts. Be sure to check with your independent insurance agent or your insurance company about any available discounts you might qualify for, such as bundling your coverage with another policy.
Popular Questions about Texas Landlord Insurance
Texas state law doesn't require landlord insurance. Many landlords still decide to get coverage to protect themselves against potentially hefty losses due to tenant damage or lawsuits, however.
Tenant damage to rental unit dwellings is covered by landlord insurance in Texas. However, landlord insurance typically won't cover tenant damage to your personal property.
Texas landlord insurance costs an average of $2,444 annually. Texas is currently in the top five most expensive states for landlord insurance.
We found that Stillwater is the best landlord insurance company in Texas this year. Stillwater's rates, coverage options, discounts, and customer reviews easily led us to choose this carrier.
Landlords aren't required to cover their renters' property. That's why, in many cases, renters insurance is required by landlords for their tenants before a lease can be completed.
In Texas, landlord insurance doesn't typically cover the cost of evicting tenants. You might be able to add an endorsement to your policy to cover these expenses, though.
Texas independent insurance agents can help you find the landlord insurance you need from a top-rated local carrier. Independent insurance agents work hard to find quality coverage at the most affordable rate. They'll shop and compare landlord insurance quotes from several carriers for you.
And down the road, they can help you file landlord insurance claims or update your coverage as needed. Your agent can help you find landlord insurance in Houston or wherever you reside.
https://www.simplyinsurance.com/landlord-insurance-rates-by-state/