Personal Lines · Landlord
Landlord insurance in Texas: what changes when you rent the house out.
Long-term rentals and short-term, single doors and portfolios — including carriers built specifically for landlords.
The short version
A homeowners policy assumes you live in the house. The moment you rent it out that assumption breaks, and a carrier can deny a claim on those grounds. A rental needs a landlord policy — usually a DP-3 dwelling form — covering the structure, your liability as an owner, and lost rent while the property is uninhabitable after a covered loss.
Three things catch Texas landlords specifically. The policy must be in the same name as the deed, so moving title into an LLC without updating the policy creates a real claim problem. Wind and hail usually carry a percentage deductible — on a $400,000 dwelling limit, 2% is $8,000 before the carrier pays anything. And coverage narrows sharply once a property has sat vacant, typically after 30 to 60 days, which is exactly the window between tenants.
The Form Changes
HO-3 to DP-3 — a different policy, not a rider.
An HO-3 is built around an owner-occupant. None of that fits a rental, where the belongings are the tenant's and you don't live there.
DP-1 is basic
A short list of named perils, losses settled at actual cash value. It prices well and shows up in online quotes; depreciation makes claims disappointing.
DP-2 is broader
Broader named perils, usually replacement cost.
DP-3 is what most investors want
Special form — covered for everything except what's specifically excluded, replacement cost on the dwelling. This is what “landlord insurance” should mean by default.
Check that liability is actually there
On some dwelling policies liability is an add-on rather than included. A landlord without it has no defense coverage when a tenant or their guest is injured.
Texas Hail
Compare the roof terms before you compare the premium.
Texas landlords lose more money to roof-claim fine print than to anything else on the policy.
Percentage wind/hail deductibles
Instead of a flat $2,500, often 1%, 2%, or 5% of the dwelling limit. On $400,000, 2% is $8,000 out of pocket. Two policies at the same premium can be very different purchases.
ACV roof endorsements
Many Texas policies settle roof losses at depreciated value rather than replacement cost. On a fifteen-year-old roof that can be a fraction of the replacement bill, with the difference coming out of your equity.
Cosmetic damage exclusions
Hail that dents metal roofing, vents, or gutters without causing a leak may be excluded as cosmetic.
None of this is hidden
It's simply never discussed at the point of sale, because the policy carrying all three prices lowest. Compare the roof settlement basis and the wind/hail deductible first.
Two Ways to Void Your Own Coverage
Both are common, and both are avoidable with a phone call.
These are the failures that turn a paid-up policy into a denied claim.
- The deed says LLC, the policy says your name
- A carrier can deny on the basis that the named insured has no insurable interest
- If you've moved a property into an LLC, series LLC, or trust, the policy has to follow
- Your lender may need to know too
- The property is on Airbnb and the policy doesn't know
- Short-term rental is a different exposure and generally isn't covered by a DP-3
- Platform host protection is limited and does not replace insurance on the building
- It's straightforwardly insurable — hiding it is the version that ends in a denial
Vacancy is the third one worth watching. Almost every property policy restricts coverage after 30 to 60 consecutive vacant days — vandalism, glass, and water damage typically drop off. That's exactly the window while you turn a unit or renovate. A short turn is usually fine; an extended vacancy needs a vacant property policy and a renovation needs builders risk.
Straight Talk
When you need less than you think.
One rental doesn't need a commercial package
A single DP-3 with adequate liability is the right answer and it's cheaper. Being sold a commercial policy for one door is being oversold.
Require renters insurance instead
A lease clause requiring the tenant to carry it and name you as additional interest costs you nothing, covers their belongings so they don't come after you, and notifies you if it cancels. Highest-return item here, and it isn't a product anyone sells you.
Don't insure the land
Dwelling limits should reflect rebuild cost, not purchase price and not the Zillow estimate. Investors routinely insure to what they paid and overpay for years.
Scaling up changes the answer
As the portfolio grows, separate renewal dates get painful and a scheduled package starts to win. That's driven by door count, total insured value, and your time — not a fixed number.
Get Started
Request a landlord insurance quote.
One door or a portfolio, long-term or short-term. Send the current policy and we'll tell you what's actually in it.
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Plano, TX 75074
Landlord FAQ
Questions we hear often.
Can I rent out my house on my homeowners policy?
No. A homeowners policy assumes owner-occupancy, and renting the property out can be grounds for denying a claim. A rental needs a landlord dwelling policy, usually a DP-3.
What does landlord insurance cover that homeowners doesn't?
Lost rent while the property is uninhabitable after a covered loss, and liability scoped to you as an owner rather than a resident. It also drops coverage for personal belongings you no longer keep there.
Does landlord insurance cover a tenant who stops paying rent?
No. Loss of rents applies only when a covered loss makes the property uninhabitable. Non-payment and eviction are not insurance claims.
My rental is in an LLC. Whose name goes on the policy?
The named insured should match the deed. If the LLC owns the property, the LLC should be the named insured, often with you added as an additional insured. A mismatch is a real claim problem.
Do I need landlord insurance if the tenant has renters insurance?
Yes. Renters insurance covers the tenant's belongings and liability. It does nothing for your building.
Why is my wind and hail deductible a percentage?
Percentage wind/hail deductibles are standard in Texas. On a $400,000 dwelling limit, 2% means $8,000 out of pocket before the carrier pays on a hail claim.
Am I covered if I list the property on Airbnb?
Usually not under a standard landlord policy. Short-term rental is a different exposure and needs a specific endorsement or a dedicated short-term rental policy — both readily available. Platform host protection is limited and does not replace insurance on the building.
How long can my rental sit empty before coverage changes?
Commonly 30 to 60 consecutive days, after which vandalism, glass, and water damage coverage typically drop off. Extended vacancies need a vacant property policy.