Investing in rental properties can yield significant long-term gains, but it’s not without risk. Landlord insurance may help Texas landlords safeguard against risks such as vandalism, natural disasters and injury lawsuits, which could otherwise greatly reduce returns.
Landlord insurance provides tailored coverage for residential investment properties. Most policies can protect buildings, equipment, and the landlord themself.
Virtually any landlord could face a major, expensive liability lawsuit. It’s recommended that most landlords in Texas have landlord liability insurance to protect against covered lawsuits.
Landlord policies also can provide important protections for the properties that a landlord owns. Coverage for buildings is strongly recommended, and frequently required when buildings are financed (as many are).
Landlord policies typically offer a variety of coverages, which can be customized for landlords’ specific needs. Some coverages to talk with a knowledgeable insurance agent about are:
An insurance who specializes in landlord liability insurance and other landlord coverages can help landlords review each of these options, to determine which ones they should include in their policy.
What types of residential income properties can be insured with a landlord policy?
Landlord policies are available for most types of rental properties. Landlords shouldn’t have any issue insuring single-family houses, townhomes, duplexes, multi-unit buildings and apartment complexes.
Landlord policies are designed to insure residential income properties. They generally aren’t well-suited for commercial buildings, such as office spaces, storefronts or similar properties.
For this reason, a landlord policy generally isn’t the right choice when insuring commercial buildings. A commercial property insurance policy likely should be used.
A landlord policy often also won’t provide all of the coverages that a mixed-use property ought to be insured with. For these properties, landlord coverages may be combined with other coverages to get the varied protections that are needed.
When insuring a mixed-use property, landlords should work closely with a knowledgeable insurance agent. An agent who knows landlord liability insurance policies and other commercial property policies will be able to make sure a policy provides the various coverages that a mixed-use property should be protected with.
If you are a landlord in Texas and need landlord insurance, reach out to the independent agents at Wise Insurance Group. Our agents can show you policy options from several insurance companies since we’re an independent agency. We’ll work closely with you to ensure you get the best policy for your building, regardless of what company is underwriting it.