Landlord Insurance Texas

Landlord Insurance Texas: Everything You Need to Know

Property owners who rent out their personal property and earn some rental income become a landlord. And when you have rental properties, you need more than just home insurance because you need to get more insurance coverage as an added protection for your property. Being a landlord, you would have to get some additional coverage for your own peace of mind.

Get a quote from your trusted insurance company, and do not hesitate to shop around for landlord insurance policies from different insurance companies so you can obtain the best landlord insurance in Texas. Here’s what you need to know. 

Who Needs Landlord Insurance in Texas?

If you are a landlord in Texas and own a rental property, it is best to purchase appropriate landlord insurance to protect you from claims and other liabilities that may arise along the way. 

Though a landlord insurance policy is not mandated in Texas, getting Texas landlord insurance is still a wise thing to do. It works if you are renting out your personal property because homeowners insurance will not protect you from any damage or loss related to your rental property.

Why Do I Need Texas Rental Property Insurance?

On average, there is at least one natural disaster reported in Texas each year. Real estate in this state often gets ravaged by hurricanes, hailstorms, tornados, wildfires, and erosion. Landlord insurance in Texas can help you protect your property from natural disasters and various liabilities you may encounter. 

Whether the coverage is for personal or for business, having insurance can help you save from unwanted costs in the event of unexpected circumstances. If your business involves rental properties such as an apartment, a home for a family, or a commercial unit, your insurance policy may cost more because you need to have more coverage and protection.

Owning commercial properties comes with challenges, and having the best policy can help offer protection to your business and your assets. The good news is that you can always customize your policy so you can have maximum coverage. Request a quote and land on the best policy rate that you can have.

Read More: Business Insurance in Texas

How Much is Landlord Insurance in Texas?

Texas landlord insurance quotes are usually about 15% more than homeowners insurance. On average, landlord insurance in Texas costs between $850 and $2,500 a year.If your real estate property is in a bigger city such as Austin, Houston, or Dallas, then you may have to pay a higher premium for your landlord insurance.

The cost of landlord insurance varies based on different factors, including:

  • Location
  • When the property was purchased
  • The history of claims of the landlords
  • Whether you have some safety equipment like a fire alarm or other alarm systems, etc.

The type of property that landlords have also affects the rate of landlord insurance. So if you are renting out an apartment, a mobile home, a townhome, a condo, a single-family home, or some other type of home, expect that they each have different policies.

Landlord Insurance Texas Claims Process

When filing a claim, landlords need to inform their insurance company of the loss. They also need to keep all receipts that may substantiate claims of loss, damage, or repair. 

Texas law requires that companies notify the covered renters that they have received the claim within 15 days and accept or deny the claim no later than 15 days after receiving all the necessary information to process the claim. 

Is Landlord Insurance Required in Texas?

Landlord insurance isn’t required in Texas but it is worth having this policy as it can protect you if you are renting and managing a personal property. 

Is Landlord Insurance the Same as Building Insurance?

These two insurance policies are quite different. While landlord insurance covers the property owner from situations such as loss of rental income, theft within the rental property, or harm. Building insurance, on the other hand, provides liability coverage to the property owner for loss due to property damage.

A Texas landlord insurance protects the landlord in the event that a tenant suddenly leaves without any notice and suffers a loss of rental income. This insurance policy also offers protection to the landlord when the property cannot be available to be rented out due to fire damage, mold, and the like. As for building insurance, its liability coverage extends to the pool, garage, or shed and also offers protection against storm damage, fire, water damage, and lightning strikes.

What Does Landlord Insurance in Texas Cover?

Landlord insurance Texas types of coverage chart

As a business owner with rental units, you always want to make sure that you have the best liability insurance coverage and that insurance covers most aspects that can affect your company, such as loss of income, claims, and other liability.

Some types of policy available are property coverage covering:

  • Careless tenants
  • Vandalism
  • Natural disaster
  • Fire and gas leak

Loss of income coverage covers loss when your rental units become uninhabitable because of the sinkhole, mold damage, termite, and the like. There is also liability coverage, which covers personal injury that occurred on your commercial property, and costs for legal or medical needs.

Insurance companies can help you avoid property liability by leading you to the best insurance policy. Know the different types of insurance, such as property insurance, home insurance, commercial insurance, building insurance, homeowners insurance, business insurance, etc., to determine what kind of policy you need. Request a quote as well to have an idea of how much a policy can cost you.

Landlords with properties like an apartment, family homes, or units in a building certainly must have comprehensive coverage as they may encounter circumstances such as storm destruction, pipe burst, tenant injury, and the list goes on. Having the best policy can protect them from these liabilities and save them from having unwanted costs that may force them to use their own personal finances.

Some insurance providers offer extra services, and you may want to watch out for these things because they can save you time and effort, some can help you find the best or at least the right tenants for your apartment. They can do this by screening your potential renters, and they are able to do the process quickly and in a reliable way. When you avail of a service such as this one, you are not only saving energy and money, but you are also getting the best renter for your apartment rental.

Read More: Commercial Property Insurance in Texas

What Does Landlord Insurance in Texas Not Cover?

Although landlord insurance protects landlords from so many things, including loss of income, claims, and other unexpected losses, some aspects are not part of its coverage, such as:

  • Maintenance repair
  • Flooding
  • The carelessness of the tenant 
  • Tenant’s own property

To get more coverage, landlords should get more than one policy or add other coverage types such as property insurance, general liability insurance to cover personal injury, auto insurance, commercial insurance, etc.

Speak to an insurance specialist who is experienced and knowledgeable and one who is from a reputable insurance agency so you can inquire about their coverage options and ask for an insurance quote. Getting help from an insurance agency can help you make sure that you will have the best policy for your business.

Does Landlord Insurance Require a Deductible?

Yes, you can take a tax deduction for the entire landlord insurance premium in Texas. If you are renting out real estate, the IRS considers this a normal business expense. 

How to Choose the Best Landlord Coverage Provider

Protecting your apartment means getting the right coverage for it, and along with this is choosing the right provider. When you are searching for the provider to take your coverage from, check how long they have been in business and if their specialists are well-informed and experienced.

Service is also very important. Check if they give personalized service and if they pay close attention to your needs and are after your own well-being instead of their own. Having claims representatives that are well-versed in this process is also something that you should look for because when the time comes that you might file a claim, you know that they can assist you quickly.

Having properties and being a landlord is definitely not easy but instead comes with so many challenges financially, physically, and mentally. Getting the right coverage or having the most comprehensive coverage is the key to having a good night’s sleep and having the feeling of security, knowing that you are protected, and your assets are safe.

Whatever type of coverage you are looking for, ensure that you do not rush the process. Take your time but not too long. Review all the policies that are applicable to you and your needs. Ask for some advice to properly determine which is the best for you. And do shop around from several different providers because this way, you can have the chance to own a comprehensive coverage but still get the most affordable rate.

Are you still confused about landlord insurance in Texas, or do you need some help getting a quote for your business? Contact us today and get all the information you need fast and for free!