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Texas Landlord Insurance: A Guide to Cancellation and Reinstatement

Key Points

  • Landlord insurance in Texas can be canceled either by the policyholder or the insurance company. There may be a cancellation fee involved.
  • If the policyholder cancels the insurance, they may be entitled to a refund of unused premiums, deducted by any cancellation fee.
  • Canceling landlord insurance is not advisable if the insured property is still owned by the policyholder and not insured elsewhere, as this would leave the property exposed to risks and potential costs out of pocket.
  • Appropriate times to cancel landlord insurance are when the property is no longer owned by the policyholder, or no longer being used as a rental property.
  • A canceled landlord insurance policy can be reinstated by contacting the insurer and signing a new agreement. However, this may result in an increased premium rate.


You can cancel your landlord insurance if you think you are no longer in need of it or if you wish to take your coverage to another insurance company. There are some steps that your insurer may expect you to take to cancel your policy, and your insurer may even charge you a cancellation fee. Your insurer can also cancel your landlord insurance if you fail to pay your insurance premiums during the grace period or you file a fraudulent claim. When your insurer wants to cancel your policy, you do not have to pay any cancellation fee. However, your insurer has to inform you, in writing, about their intention to cancel your policy and the reason behind the cancellation.

How Do I Cancel My Landlord Insurance Plan in Texas?

You can cancel your landlord insurance plan by following these steps:

  • Contact your insurer through your property insurance agent to inform them of your intention to cancel your landlord insurance policy
  • Sign the cancellation paperwork provided by your insurer
  • If the cancellation is during an active policy term and you still have unused premiums, you can apply to collect your unused premiums minus the cancellation fee if your insurer charges it.

Before canceling your rental property insurance plan in Texas, consult with your Texas-licensed property insurance agent for professional advice.

Is It Bad To Cancel Landlord Insurance Policy?

Whether canceling a landlord insurance policy is bad or not depends on the reason for canceling it. It is not bad to cancel your rental property insurance policy if you are no longer the owner of the building property that your landlord insurance covers. It is not bad to cancel your rental property insurance for a property that you are no more using as a rental. However, it is bad to cancel your current landlord insurance if you still own the insured property and have not purchased another landlord insurance policy to cover it. If you cancel your policy when you have not purchased another one, your rental property is exposed to risks that your insurance company will not cover. This means that in the event of a peril that results in certain damages, you will have to bear the replacement costs out of pocket. If there are personal liability claims on the property, you will have to settle medical costs and legal fees, as the case may be, out of pocket. It is bad to cancel your landlord insurance policy because it can result in lost rental income if your tenants fail to pay the rent or your rental property is under repair and no tenant lives there.

Can I Cancel Landlord Insurance Without Penalty?

This depends on your insurer and the terms of the contract. Unlike some other types of insurance in Texas, landlord insurance does not offer a free look or a cool off period. The coverage starts on the date listed in the contract and its cost is calculated by the insurer based on the elapsed time and a daily rate.

How Long After Getting Landlord Insurance Can I Cancel It Without Penalty?

Although you can cancel your landlord insurance anytime, some property insurance companies operating in Texas may allow you to cancel your policy within the first 14 days after you get it, without having to pay extra fees beyond the amount already spent on the coverage.

When Should I Drop Landlord Coverage?

You should drop your landlord insurance coverage when:

  • You are no longer the owner of the building or properties that your rental property insurance policy covers
  • You no longer rent out the building your policy covers, and you have converted it for your personal use. In this case, you can add the property to your homeowners insurance coverage.

Your landlord insurance coverage is considered unnecessary after any of the above events have occurred. Consult with a knowledgeable Texas-licensed property insurance agent if you consider dropping your landlord insurance coverage.

Do I Get a Refund of Unused Premiums If I Cancel Landlord Insurance Coverage?

Yes. You get a refund of your unused premiums if you cancel your landlord insurance coverage before the end of your policy term. Your insurer will calculate the number of days for which the coverage was active, deduct it from the total amount paid, and refund the unused premiums to you. (Note: If any additional cancellation fees are due to the insurer, they are deducted from the unused premium. The remaining amount is refunded to the insured.)

How Can I Reinstate Canceled Landlord Insurance?

You can reinstate a canceled landlord insurance policy by:

  • Contacting your insurer to discuss your intention to reinstate your policy
  • Signing a new landlord insurance policy agreement with your insurer

Your insurer may increase your premium rate depending on the circumstances surrounding the initial cancellation of the policy. Contact a knowledgeable Texas-licensed property insurance agent to help you with reinstating your canceled landlord policy.

How Does Landlord Insurance Work in Texas?

What is Covered by Landlord’s Insurance - a Detailed Texas Guide

How to Get Landlord Insurance in Texas

How Much is Landlord Insurance in Texas?

How Are Landlord Insurance Claims Handled in Texas?

How to Pay for Landlord Insurance

How to Make Changes to Landlord Insurance

How to Replace Landlord Insurance