There are six ways through which you can pay for landlord insurance (also known as rental property insurance) in Texas, including:
Always speak with knowledgeable and state-licensed insurance professionals prior to making insurance coverage decisions.
In Texas, the landlord of the insured building pays for their landlord insurance policy. If a group of persons jointly owns a rental property or properties, the policyholder of the landlord insurance pays for the policy.
You can pay for rental property insurance in Texas through any of the following means:
Yes, you can finance your landlord insurance cost in Texas. There are many premium financing companies in Texas that can help you save money at the moment when you need the coverage and may not be able to afford to pay for the policy in full. Such companies pay your insurance premium by giving you a loan to pay your landlord insurance premium. This allows you to have insurance coverage for your rental units while you do not have to pay a significant lump-sum payment for the coverage from your pocket upfront. You will, however, be required to pay back the loan with interest to the premium financing agency as stated in the premium finance agreement.
Yes, premium financing is available for landlord insurance in Texas. Typically, if you are getting landlord insurance coverage for your primary or secondary home, your insurer may offer you an option to keep paying the premium on a monthly basis and not charge you extra for it, or charge a small ($3 - $10) monthly fee to offset its processing costs.
Insuring larger multi-unit residential properties in Texas typically requires commercial insurance coverage, which is usually either paid upfront in full or financed through a 3rd party financing company. Speak with a knowledgeable Texas-licensed property insurance agent to discuss your intention to finance your landlord insurance premium.
If the insurer requires the payment for the property in full, owners of such rental properties can use premium financing to pay the premiums for their landlord insurance policies through loans from premium financing companies. This is how premium financing works for landlord insurance in Texas:
Unlike other forms of loans, a landlord who applies for premium financing to pay their premiums does not need any collateral to secure the loan besides the landlord insurance policy itself.
Premium finance is different from other payment methods for landlord insurance in two ways.
Landlord insurance is paid annually, bi-annually, or monthly, depending on the policyholder's agreement with the insurer. The payment options a policyholder has are:
Landlord insurance can be paid both monthly or yearly in Texas. The payment structure is determined by the insured landlord's agreement with the insurer, as recorded in their insurance policy document and whether premium financing was used or not.
Yes, landlord insurance premiums can be paid annually in Texas. Paying the premiums for landlord insurance annually is advisable as it typically results in discounts.
Speak with a state-licensed and knowledgeable property insurance agent to discuss your payment options.
No, your new landlord insurance cannot cover your old bills. If you had a rental insurance insurance plan when the covered loss occurred, your old landlord insurance policy would cover the old bills. However, if you did not have any landlord insurance coverage for your rental property when the peril affected your property, your new policy cannot cover the expenses of fixing or replacing the property. If there was no coverage for your rental property when someone experienced slip and fall on your property, you will have to cover any premises liability claims that come up out of your pocket. To avoid paying for an insurable damage and liability claims out of pocket, do not leave your property uninsured at any time.
You can use any of the following methods to send your landlord insurance bill in Texas.
No, you do not pay taxes when you purchase landlord insurance in Texas. Your insurer pays a tax on the policies they sell, but the tax they pay is not transferred to you, although your insurer may have built the tax into the policy's price.
Also, the payout you receive when you file a landlord insurance claim in Texas is not considered part of your earnings because it is only meant to restore your rental property to the state it was before the damage occurred. What your insurer pays you is for repairs. Even if you do the repairs yourself, you do not pay any tax on the claim payout itself, but on the money you make as a contractor. The Internal Revenue Service (IRS) only taxes income. Therefore, your insurance claim payout for repairs is not taxable.
However, you will pay a tax on your landlord insurance claim if the claim payout is for loss of rental income because it becomes an income and it is taxable. One of the coverages that landlord insurance provides is loss of rental income coverage. If you file a claim because your tenant refuses to pay or because a couple of your rental units are being repaired and you have lost some of your rental income, your claim payout is taxable.
Yes, landlord insurance premium is typically tax-deductible. You can pay your complete rental property insurance premium from your total rental earnings. After deducting your total premium, you pay your tax on the remaining income, as this is considered your actual income. Landlord insurance premium being tax-deductible reduces what actually becomes your actual earnings and reduces what you pay as tax. For taxation purposes, seek advice from a licensed tax professional in Texas.
Yes, you can pay your landlord insurance late, provided it is within your insurance policy’s grace period. Insurance companies that sell landlord insurance give their clients a grace period within which they can pay for their insurance before it becomes inactive. However, if they do not pay their premiums within the grace period, their insurance will lapse, and they will lose coverage.
Yes, Texas landlord insurance has a grace period, typically up to 30 days (depending on the insurer). Within this time (which is outlined in the contract), the insured is expected to pay all outstanding premiums. If the policyholder fails to pay their outstanding premiums within this period, they will lose the insurance coverage for their rental properties.
A grace period in landlord insurance is the extra time that an insurance carrier gives their client to meet up with the payment of their landlord insurance premium. Delayed payment of your landlord insurance premium within the grace period does not attract late payment penalties. However, if payment is not made during the grace period, you will lose your landlord insurance coverage.
No, there is no other grace period for landlord insurance after termination in Texas. If you fail to pay for your insurance during the grace period before termination and your insurer terminates your policy, you have two options to get landlord insurance again:
It is advisable not to miss the payment of your insurance premium, especially after your insurer has given you a grace period, to avoid policy termination. If you find yourself in such a situation, contact a Texas-licensed insurance agent to discuss your options.
If you cannot pay for landlord insurance in Texas, there are two alternatives for you:
No, your landlord insurance will not lapse immediately if you miss a payment’s due date because, after the due date, you still have a grace period of 30 days during which you can make payment. However, your landlord insurance company can terminate your policy if you still do not pay your premium within the grace period. When your landlord insurance coverage lapses, your property will be without coverage. To get coverage again, you have two options:
For any option you wish to take, a knowledgeable Texas-licensed property insurance agent will help you get your rental property covered.