Getting landlord insurance from any insurer in Texas requires completing an application form. Generally, the insurer will request information concerning the property size, geographical location, total rental units, and the available security systems.
Choosing the desired coverage amount is often the first step in the application process, so make sure that you understand all the coverages, deductibles, and exclusions before commiting to a contract. Once approved, the landlord makes a premium payment and the insurer issues the policy. The newly insured landlord can now rent out the property to the renters without worrying about losing their investment due to a freak accident or an unruly tenant. In the event of a covered event, the insured landlord can file a claim with the insurer, who then pays the damages, minus the agreed upon deductible.
Coverage remains in effect as long as the premiums are made on time and the renewals of the policy are maintained. Make sure to discuss all your questions about landlord insurance with a Texas-licensed residential and/or commercial insurance agent, who is legally authorized to provide advice, guidance, and quotes.
In Texas, landlord insurance is commonly purchased by owners of rental properties to protect their properties against damages and any medical or legal liability. It also offers income protection. If a rental property becomes uninhabitable due to damage, tenants will leave and there will be no rent until repairs are completed. Rental income coverage will compensate you for the income you would have made from rent during this period.
The most common use of landlord insurance in Texas is for protection against loss of rent and property damages.
While homeowner insurance protects a homeowner's personal residence, it does not cover rental properties. Landlord insurance covers only rental properties, in which the landlord does not live.
Landlord insurance and building insurance are important policies beneficial for renters in Texas. However, while landlord insurance focuses on the liabilities related to renting out a property, building insurance focuses on protecting the property’s structure. Standalone landlord insurance will not cover damages done to the building. This is why some insurers offer landlord building insurance to cover both the building and tenant-related liabilities.
Make sure to discuss your needs with a state-licensed property insurance agent who can go over the best options to cover your risk exposures.