What Houston property owners should have for landlord insurance in Texas
Owning rental property in Houston can make a lot of money, but it also comes with risks. Landlords need the right insurance to protect their investment from things like bad weather, damage to property, liability claims, and problems with tenants. Landlord insurance is important for Houston property owners because regular homeowner’s insurance isn’t enough for rental properties.
This guide tells you what landlord insurance covers in Texas, what Houston landlords should have, and how to pick the best coverage.
Why You Need Landlord Insurance in Houston
Landlord insurance is very important in Houston because of the weather and the economy. Some of the risks that property owners face are:
- Hurricanes and very bad storms
- Water damage and flooding
- Injuries to tenants and claims of liability
- Not being able to rent out the property because of repairs
A single event can cause a lot of financial damage if you don’t have enough coverage. Landlord insurance is meant to protect rental properties, not homes that the owner lives in.
What Is Insurance for Landlords?
Landlord insurance is a type of insurance that protects people who rent out their homes from damage to the property, liability risks, and loss of income. It covers the property as if it were occupied by tenants, which is different from homeowner’s insurance.
Most policies can be changed to fit the needs of Houston landlords based on the type of property, its location, and the level of risk.
Main Coverages Houston landlords should have dwelling coverage
This includes damage to the building itself, such as:
- The roof, walls, and foundation
- Appliances that are built in
- Garages or buildings that are connected to them
Because of storms, wind damage, and hail, this coverage is very important in Houston.
Protection from Liability
Liability coverage protects landlords from having to pay for injuries that happen on their property by tenants or guests. This could include:
- Injuries from slipping and falling
- Conditions that aren’t safe
- Costs of legal defense
Liability claims can be very costly, so this is one of the most important types of insurance for landlords in Houston.
Coverage for Loss of Rental Income
If a covered event makes the property uninhabitable, loss-of-income coverage pays for lost rent while repairs are being made. This helps landlords keep their cash flow going even when tenants have to leave for a short time.
This coverage is especially helpful for Houston landlords who need rental income to pay their mortgages or other bills.
Flood insurance is not required, but it is highly recommended
Flood damage is not covered by standard landlord insurance. Because Houston is at risk of flooding, landlords should think about getting separate flood insurance from either the National Flood Insurance Program (NFIP) or private insurers.
Protection against windstorms and hurricanes
Some policies don’t cover or limit damage from windstorms. Landlords in Houston should check to see if their insurance covers wind and hurricanes, or if they need a separate endorsement.
Coverage for Personal Property
This includes things that the landlord owns, like:
- Appliances
- Furnishings (for rentals that are only partially furnished)
- Tools for maintenance
It doesn’t cover things that tenants own, but it does cover things you give them.
Insurance for Umbrellas
For landlords who own more than one property or have a higher risk of liability, umbrella insurance gives them extra liability protection that goes beyond the limits of their standard policy.
What Landlord Insurance Doesn’t Cover
It’s just as important to know what isn’t covered as it is to know what is. Most landlord policies don’t cover:
- Personal things of the tenant
- Normal wear and tear
- Not taking care of or ignoring
- Some natural disasters that don’t get any help
Clear expectations help keep claims from being surprising.
How much insurance should Houston landlords have?
There are some general rules about coverage needs, but they can vary:
- Coverage for your home should be equal to the cost of replacing it, not its market value
- Liability limits of at least $300,000 to $500,000
- Loss-of-income coverage that matches the expected rental income
It is best to talk to an insurance agent who knows a lot about Houston properties.
Lease and Insurance Agreements
Landlords should also protect themselves by putting certain things in the lease, like:
- Making tenants get renters insurance
- Clearly stating who is responsible for maintenance
- Including disclaimers of liability when possible
It works best when insurance and lease terms are the same.
How Home CoHost Keeps Houston Landlords Safe
Getting insurance is only one way to protect a rental property. Home CoHost helps Houston landlords lower their risk by offering professional property management, proactive maintenance coordination, tenant screening, and clear operational processes. Home CoHost helps owners keep their properties in good shape and their tenants up to date, which lowers the number of claims, keeps costs down, and makes rentals safer. Visit https://www.homecohost.com to learn more.