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- Comprehensive coverage for fire, water, vandalism, and more
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- Tailored policies for short, mid, and long-term rentals
- Nationwide availability across all 50 states
Texas landlords face a unique mix of opportunity and risk. Whether you’re managing a duplex in Dallas or a vacation rental in Galveston, protecting your investment goes beyond a solid lease. You need the right insurance coverage—and landlord insurance in Texas is a crucial part of that strategy.
This guide breaks down what landlord insurance covers, what Texas-specific risks to watch for, and why a standard homeowners policy won’t cut it.
Why Homeowners Insurance Doesn’t Cover Rentals
Many first-time landlords make the mistake of relying on their existing homeowners policy for a rental property. Here’s why that’s a problem:
- Homeowners insurance is for owner-occupied homes—not rental income properties.
- Most policies exclude claims if the property is being rented out.
- Damage from tenant activity or loss of rental income usually isn’t covered.
Your next step: If you’re converting your primary home into a rental or purchasing a new investment, make sure you switch to a landlord-specific policy before your first tenant moves in.
What Does Landlord Insurance Cover?
In Texas, a standard landlord insurance policy typically includes:
- Dwelling Coverage: Protects the structure from perils like fire, wind, hail, and vandalism.
- Liability Protection: Covers legal expenses and medical costs if a tenant or guest is injured on your property.
- Loss of Rent: Reimburses lost rental income if the property becomes uninhabitable due to a covered event.
- Optional Add-Ons:
- Vandalism protection
- Rent guarantee insurance
- Coverage for appliances and furnishings
Texas-Specific Risks That Make Landlord Insurance a Must
Texas is known for its extremes—blazing heat, hurricanes, hailstorms, and even tornadoes. That volatility makes insurance more than a “nice-to-have.”
Here are key Texas-specific risk factors:
- Hail and Windstorms: Particularly in North and Central Texas.
- Flooding: While not covered in standard landlord policies, flood insurance is highly recommended in areas like Houston and coastal cities.
- High Litigation Risk: Texas is among the top states for premises liability lawsuits.
Savvy investors know: Skipping coverage can lead to catastrophic losses. Even a minor incident could eat into years of rental income.
Texas Landlord Laws and Insurance Implications
Understanding state law is essential for compliance—and for knowing when insurance is a safety net. Here’s what Texas landlords need to know:
- You’re responsible for maintaining safe premises under Texas Property Code §92.
- Security devices (locks, peepholes, smoke alarms) are required by law—and claims may be denied if these aren’t compliant.
- Tenants can sue for injuries or uninhabitable conditions, even if you’re not at fault.
Insurance Tip: Liability coverage in your landlord policy is your best defense against tenant lawsuits.
How Much Does Landlord Insurance Cost in Texas?
Rates vary by location, property type, and coverage level. On average:
- Texas landlords pay between $1,200–$2,500 annually per property.
- Coastal areas (e.g., Corpus Christi, Galveston) may see higher premiums due to hurricane risk.
- Adding liability or flood insurance can increase your total cost—but drastically reduce your exposure.
Landlord Insurance vs. Property Manager Coverage
Using a property manager? Don’t assume their insurance covers you.
Landlord policies protect your asset. Property management insurance protects their operations.
For full protection:
- Require your property manager to carry professional liability and errors & omissions (E&O) insurance.
- Still maintain your own landlord insurance for the building, income, and liability risks.
👉 Read more: Landlord Insurance vs. Property Manager Coverage
Real-World Example: Don’t Let This Happen to You
Carlos owned a single-family rental in Austin. He let a friend stay in the home rent-free for a few months while he traveled abroad. When a plumbing issue flooded the property, his homeowners insurance denied the $15,000 claim—because the home was being used as a rental. Had Carlos secured landlord insurance, he’d have been covered.
Ready to Protect Your Investment?
Don’t wait until disaster strikes to rethink your coverage. Whether you’re closing on your first rental or managing a growing portfolio, landlord insurance in Texas is essential for protecting your cash flow and peace of mind.
👉 Get matched with an insurance partner today
FAQs: Texas Landlord Insurance
Do I need landlord insurance if my tenants have renters insurance?
Yes. Renters insurance covers your tenant’s personal property, not your building or your liability as the owner.
Can I write off landlord insurance on my taxes?
Absolutely. Premiums for landlord insurance are generally tax-deductible as a business expense.
Is flood insurance included in landlord coverage?
No. You’ll need to purchase a separate flood policy through FEMA or a private insurer.
Read Next
- Landlord Insurance vs. Property Manager Coverage
- Insurance for Multiple Properties: Strategies for Portfolio Landlords
- Risk Management Tips for Rental Portfolios
Protect Your Rental Investment with Steadily
- Comprehensive coverage for fire, water, vandalism, and more
- Quick online quotes—get insured in minutes
- Tailored policies for short, mid, and long-term rentals
- Nationwide availability across all 50 states
Our advise is based on experience in the mortgage industry and we are dedicated to helping you achieve your goal of owning a home. We may receive compensation from partner banks when you view mortgage rates listed on our website.
