Texas landlords have to manage their risks to maximize business profitability. Common threats include natural disasters, as Texas is the US state that is most prone to natural disasters. Landlords also face liability exposures. Control your risks with the best landlord insurance in Texas.

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What is landlord insurance?

Landlord insurance is insurance that can be purchased by landlords to protect against a wide range of risks related to owning and renting out properties. Landlord insurance policies typically cover property damage, including damage caused by fires, wind and hail. Liability protection is another key element of landlord insurance policies. 

Who needs landlord insurance?

Whether you own a single apartment building or multiple properties, landlord insurance can be a smart way to protect your investment and your future income. 

Although state and local laws in Texas may not require landlord insurance, landlords may be required to maintain coverage if they have a mortgage. This is because many lenders include insurance requirements as part of their terms.

Even if you are not obligated to buy landlord insurance, you should seriously consider doing so. Consider what would happen if unexpected damage made a unit uninhabitable. Would you have the cash on hand to cover repairs, and could you manage without the rental income? Likewise, think about what would happen if someone were injured on your property and sued you. Could you cover the medical costs and possible legal fees yourself? If these scenarios would create a financial hardship for you, consider protecting yourself with landlord insurance.

Can a landlord require renters insurance in Texas?

According to the Texas Department of Insurance, landlords may require tenants to purchase renters insurance. Renters' insurance provides personal property coverage, additional living expenses and personal liability coverage. 

Requiring renters insurance may be a smart move because renters insurance provides important protection. The landlord’s insurance covers the landlord’s liability exposures and property, but tenants need their own coverage if they want to protect their own personal property and secure liability coverage. By requiring renters insurance, landlords can help educate their tenants on the importance of coverage and help avoid potential disputes.

Special considerations for Texas landlord insurance

Regardless of the state where they own property, landlords face threats from accidents, crime, fire and weather-related damage. In Texas, natural disasters are an especially significant threat.

According to World Atlas, Texas has more natural disasters than any other state. This is partially due to the state’s location near the gulf and partially due to its size – it’s the largest state after Alaska. Texas usually declares at least one natural disaster each year.

Texas Ready says that flooding is the most common type of disaster in Texas. Tornadoes are also common, especially in the spring. Other natural disasters that can strike the state include hurricanes, wildfires, thunderstorms, winter storms and extreme heat.

Hail is also a major risk in Texas. While most people recognize the devasting potential of hurricanes, they may underestimate the damage that hailstorms can cause. According to the Insurance Information Institute, hail-related losses averaged between $8 billion and $14 billion per year between 2000 and 2019, and Texas had more major hail events in 2021 than any other state.

Data from the National Oceanic and Atmospheric Administration (NOAA) shows that Texas experienced 118 tornadoes, 688 large hailstorms and 656 windstorms in 2021, for a total of 1,462 storms. No other state had more hailstorms, tornadoes, or total storms. 

hurricane season texas landlord insurance
Houston, Texas: Hurricane sign warning the drivers over the freeway down in the city

Are natural disasters covered by landlord insurance?

Standard property insurance does not include coverage for flooding. Landlords and other property owners who want this important protection need to purchase additional coverage. Property insurance policies also typically exclude coverage for earthquakes and landslides. 

However, fires, wind damage and hail damage are typically covered. Sudden and unexpected water damage, for example, from a burst pipe during a winter freeze, may also be covered. See your landlord insurance policy for coverage details and exclusions.

Being a landlord in Texas

In addition to navigating natural disaster risks, Texas landlords also need to navigate local, state, and federal laws. 

Unlike some cities and states, Texas does not have rental control caps on rent increases. According to the Texas Tribune, a city may be able to implement rent control, but only if a disaster causes a housing emergency. 

However, there are a number of landlord-tenant laws in Texas. For example, Texas landlords need to provide a copy of the lease agreement within three days of signing. Other rules cover how security deposits must be handled and the processes that landlords need to follow if they determine that it’s necessary to evict a tenant, among other things.

In addition to state laws, Texas landlords need to follow relevant federal laws, such as the Fair Housing Act, and relevant local laws in the city or county.

Honeycomb Texas Landlord Insurance

Honeycomb's landlord insurance is available in Texas. We provide simple and transparent coverage for landlords, property managers, and building owners. Coverage can include the following:

  • Landlord property protection. Repairs can be costly, and landlords may not have funds set aside for unexpected repairs. Your policy will help pay for the necessary repairs after a covered loss, such as a fire or hailstorm.
  • Loss of use. After a disaster, your building may be uninhabitable until repairs are completed. As a result, you may incur costs rehoming your tenants, as well as loss of income. Loss of use coverage helps cover rehoming costs and lost rent.
  • Medical payments. If someone is injured on your property, medical payments coverage can help pay the resulting medical bills.
  • Landlord liability protection. Landlords can be the target of lawsuits. If you’re sued, your policy can help cover defense costs and court judgments.

Average Honeycomb customers typically save around 40% on their landlord insurance. Do you want to see how much you can save on Texas landlord insurance? Get a quote now.