Landlord Insurance

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Texas Landlord Insurance

Texas landlord insurance provides peace of mind for an investment property owner in TX. If you own one or more rental units in Houston, San Antonio, Dallas, Austin or other Texas cities you need to be sure you are properly protected. Here are five things that every landlord needs on their insurance policy:

  1. Landlord Liability Insurance - maximum amount possible
  2. Contents coverage - protects landlords personal property
  3. Loss of rental income - assume 12 months of lost rents
  4. Dwelling coverage - get an updated reconstruction cost estimate
  5. Personal umbrella policy - increased liability protection if you own multiple units

Each tenant can pose a potential threat to your net worth if they are hurt on your property. This can be minimized by having the right protection in the form of landlord liability insurance. You should require each renter to carry renters insurance with at least $20,000 in personal property coverage and $100,000 in liability coverage.

Being a landlord has many advantages but it also comes with a lot of responsibility. Be sure to check with your insurance agent as to what insurance coverage you may need when renting out homes. Not all properties are the same and each will require an in depth review of your coverage. Don't be caught off guard when something bad happens, make sure you have a landlord insurance policy.

Landlord Insurance for Mobile Homes in TX

When renting out a mobile home in Texas you need to consider the type of homeowners insurance that is necessary for proper protection. You will need a landlord insurance policy that covers your building property in addition to landlord liability. Landlord liability insurance will protect you against lawsuits filed by your tenants for property damage and/or injuries related to the upkeep of your rental property.

Many renters who live in Texas wish to have their own space separate from other rental units and a mobile home is perfect for that scenario. Things to consider when renting a mobile home:

  • Require renters insurance from your tenants
  • Inform tenants that flooding is not covered on most insurance policies and if they wish to have personal property coverage they need to get flood insurance from F.E.M.A
  • Maximize landlord liability coverage on your policy, usually $1 million
  • Only have a small amount of personal property coverage unless you furnish the mobile home with your own belongings

Cheap Landlord Insurance in Alabama

Landlord insurance in TX doesn't have to be expensive; in fact you can usually pay close to what your homeowners insurance would be with the added benefits of coverage for a rental property. This means you will get all the great coverage such as personal property, building contents, and dwelling coverage plus the landlord specific liability insurance and loss of rents.

Get a rate quote for rental property insurance in Texas today. It will likely save you hundreds of dollars over your current policy and possibly increase your coverage limits. Start now by entering your zip code at the top of this page.

Cost of Landlord Insurance in Texas

The cost to insure your rental property in TX is dependent upon numerous rating factors that home insurance companies use to determine the proper premium. When you own a condo or townhouse the cost of landlord insurance is very minimal because usually you split that cost with the homeowners association which insurers the exterior of your unit. If you insure a single family home or rental complex then your insurance costs are going to be much higher due to the replacement cost of the building is solely your responsibility.

Here are a few of the most common rating factors that insurance companies use to determine your landlord insurance premium:

  • Credit rating - This is your personal credit rating which is similar to a FICO score but can be based on other specific criteria such as payment history and bankruptcy.
  • Location - The zip code or city that your rental unit is located in has a dramatic effect on your insurance premiums as companies who have big losses in those areas will increase rates to get profitable.
  • Building type - This can include numerous things including condo, single family, and townhouse including the materials used to construct the property.
  • Claim history - If you have one or more claims in the past 3 years as a homeowner most insurance companies will surcharge your premium. Some companies may not even accept your business if you have more than two.
  • Discounts - If you have more business with an insurance carrier they are more likely to offer discounts to keep all of your business with them.

Texas' 5 largest cities by population

City
Population
Houston 2,099,451
San Antonio 1,327,407
Dallas 1,197,816
Austin 790,390
Fort Worth 741,206

*Data from 2010 Census Population by the Department of Economic and Community Development.

Common Landlord Insurance Claims in TX (Texas)

Wind
(Most claims cost over $4,800 to repair wind damage)

Water
(Most claims cost over $4,200 to repair damages from fire)

Hail
(Most claims cost over $4,000 to repair damage from hail)

Theft
(Most claims cost over $3,000 to recover property)

Medical Payments
(Most claims cost over $3,000 to recover medical payments)

NOTICE: The amounts listed above are for illustrative purposes only and should not be used to decide what coverage limits you need for your landlord policy. Speak with your insurance agent to determine the proper coverage limits.

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