Property Management Blog

A Comprehensive Guide to Texas Landlord Insurance

System - Tuesday, April 30, 2024
Property Management Blog

As a landlord, keeping your investment property safe is crucial. Texas Landlord Insurance offers a safety net against potential risks and liabilities. 

You can understand why having some financial protection is crucial when you take into account the risks that come with renting out real estate in general. 

In this guide, we will look into the specifics of Texas Landlord Insurance, covering everything from coverage options to cost-saving strategies.

Understanding Texas Landlord Insurance

Texas Landlord Insurance is like homeowners insurance but made for rental properties in Texas. It covers structures and damage from certain events, just like homeowners insurance does. 

The main goal of Texas Landlord Insurance is to keep landlords and their investments safe from things like property damage, liability claims, lost rental income, and legal costs. You can personalize your Texas Landlord Insurance policies to match your needs

Exploring the Coverage Offered by Texas Landlord Insurance

Texas Landlord Insurance typically covers various aspects related to rental properties and the risks associated with them. Some common coverages included in Texas Landlord Insurance policies are:

  1. Personal Property: Protection for landlord-owned belongings used for the maintenance of the rental property, such as appliances, fixtures or furnishings.

  1. Property Damage: Coverage for damage to the structure of the rental property caused by hazards such as fire, theft, vandalism, or natural disasters.


  1. Loss of Rental Income: Compensation for lost rental income if the rental property becomes uninhabitable due to a covered hazard, such as fire or flood, and tenants are unable to occupy the property.

  1. Landlord Liability Protection: Coverage for legal expenses and damages if a tenant or visitor is injured on the rental property and holds the landlord liable for the injury.

  1. Legal Expenses: Coverage for legal fees and expenses related to tenant disputes, eviction proceedings, or other legal matters arising from the landlord-tenant relationship.

  1. Extra Protections: Certain Texas Landlord Insurance plans might include extra protections like liability coverage if a tenant gets hurt off the property, defense against wrongful eviction claims, or coverage for damage caused by tenants on purpose.

Identifying Exclusions in Texas Landlord Insurance Policies

While Texas Landlord Insurance provides comprehensive coverage, there are certain exclusions to be aware of:

  1. Tenant Possessions: Landlord Insurance usually does not cover damage to or loss of the personal belongings of tenants. Tenants are responsible for obtaining their own renters insurance to protect their personal property.

  1. Flood Damage: Standard Texas Landlord Insurance policies typically do not include coverage for damage caused by floods. Landlords may need to purchase separate flood insurance to protect against flood-related risks.

  1. Natural Deterioration: Normal wear and tear of the rental property over time, such as aging or deterioration, is generally not covered by Texas Landlord Insurance.


  1. Legal Responsibility: While Texas Landlord Insurance provides liability protection for certain situations, it may not cover all types of legal liability. For example, intentional acts of harm or certain types of legal disputes may not be covered.

  1. Deliberate Harm: Damage caused intentionally by the landlord or tenants is typically not covered by Texas Landlord Insurance.

  1. Property Vacancy: Some Texas Landlord Insurance policies may have limitations or exclusions related to coverage for vacant rental properties. 

Landlords should review their policies carefully to understand any vacancy-related provisions. Additionally, landlords may have the option to add endorsements or additional coverage options to address specific needs or risks not covered by standard policies.

The Benefits of a Landlord Insurance Policy

Landlord Insurance offers comprehensive financial protection, covering property damage from risks like fire or storms, liability claims from tenant injuries, and loss of rental income during repairs. 

It also includes coverage for tenant disputes, theft, vandalism, and assists with tenants' living expenses during displacement. Legal support is provided for complex legal matters. Overall, Landlord Insurance enables landlords to safeguard investments, maintain rental income, and confidently mitigate risks.

Assessing the Expense of Landlord Insurance in Texas

Assessing expenses helps landlords budget effectively for insurance costs. Although the average annual premium is approximately $2,400, this approximate amount may not accurately reflect the anticipated cost of yours. 


The cost of Landlord Insurance in Texas varies depending on several factors, including the size and location of the property, coverage limits, and the insurer's underwriting criteria.

Determining the Costs of Texas Landlord Insurance

Insurance costs are based on factors like the property's location, characteristics, coverage options, deductible amount, overall risk to the specific property, credit history, additional coverage, and available discounts. 

These factors collectively determine the level of risk associated with insuring the rental property and the landlord, influencing the regular payment. 

Landlords can work with insurance agents or brokers to evaluate their specific needs, compare coverage options, and find the most cost-effective insurance solution for their rental properties. However, they need to check out your property before they can tell you the final price.

Strategies for Lowering Your Texas Landlord Insurance Premiums

To reduce your Texas Landlord Insurance costs, compare prices from different companies and opt for higher deductibles. Bundling insurance types with one provider can also lead to lower costs. Enhancing property safety with features like smoke detectors lowers risk and premiums.

Maintaining a good credit score helps reduce insurance expenses, and selecting appropriate coverage prevents overpaying. 

Avoiding small claims and seeking available discounts maximizes savings. Choosing annual payments over monthly installments is financially wise. These steps help cut insurance expenses while ensuring sufficient coverage for your rental property.


Texas Landlord Insurance is essential for protecting rental properties and minimizing financial risks for landlords. When combined with SGI Property Management Dallas, landlords can significantly improve their property management effectiveness and ensure long-term success. 

SGI Property Management Dallas offers a wide range of services, including property marketing, tenant screening, rent collection, maintenance, financial reporting, and eviction protection. 

By understanding insurance coverage options and partnering with SGI, landlords can make informed decisions to safeguard their investments and maximize returns.