The increase in extreme weather is causing a few headaches for Texas landlords, one of which is the skyrocketing cost of insurance premiums over the past few years. 

However, insurance remains something of a necessity when you own rental properties. Without proper coverage, you could risk significant financial losses due to property damage, natural hazards, legal liabilities, or tenant issues.

In this guide, you’ll discover the top Texas landlord insurance companies, learn about factors affecting insurance costs, discover potential discounts, and more. This way, you’ll better understand how to protect your rental property effectively and choose the best insurance policy for your needs.

1. Steadily

Steadily is a standout choice for landlord insurance in Texas and elsewhere, renowned for its exceptional service and comprehensive coverage options.

With property and liability insurance specifically tailored for rental property owners and investors, Steadily’s fast and efficient process helps ensure you can get a quote online within minutes. They make it simple to secure the protection you need without the hassle.

With Steadily, you can cover a variety of rental property types, including single-family homes, vacation rentals, condos, and multi-family units. Its  highly customizable policies allow you to cover a wide range of risks with various coverages.

Its insurance policies include essential protections, such as liability coverage for tenant injuries and property damage from natural disasters or malicious acts. Plus, the rates are competitive nationwide.

Whether you need basic protection or extensive coverage that includes less common perils like riots, Steadily’s flexible options make finding the right insurance fit for your property easy.

The company also offers stellar customer service. With 4.4 stars on Trustpilot, satisfied customers have praised Steadily for having knowledgeable representatives and a smooth policy setup process.

Key features:

• Tailored property and liability insurance for rental property owners and investors
• Partnered with Stessa, the #1 app for landlords
• Quick quote process, often delivered within minutes
• Coverage for various property types, including single-family homes, vacation rentals, condos, vacant units, apartment buildings, small multi-family units, and manufactured homes
• Highly customizable policies to match specific risk profiles and coverage needs
• Liability protection for tenant and guest injuries
• Protection against common damages like broken pipes, appliance leaks, and storm-related roof damage
• Coverage for rare perils, such as riots, explosions, and volcanic eruptions
• Competitive rates across all 50 states
• Expert guidance from knowledgeable sales agents to secure the right coverage
• Smooth policy setup process, praised by numerous satisfied customers
• Malicious mischief coverage for repairs and replacement of damaged property

Trustpilot rating: Excellent (4.4 stars out of 5 from 1,021 reviews as of August 2024)

Allstate

Allstate is a well-established insurance provider offering a wide range of coverage options beyond just landlord insurance. Known for its comprehensive policies and customer service, the company provides customizable insurance solutions for all types of needs.

Key features:

• Customizable coverage options: Tailor your policy with deductible amounts and endorsements that suit your specific needs.
• Variety of coverages: Access a broad spectrum of insurance products, including auto, home, and umbrella insurance, facilitating bundling for discounts.
• Discounts for safety features: Get discounts for properties equipped with safety features like smoke and burglar alarms.
• Claim satisfaction guarantee: Enjoy a unique satisfaction guarantee on your claims, which aims to help ensure better service and support.

Trustpilot rating: Bad (1.2 stars out of 5 from 440 reviews as of August 2024)

Farmers

With a strong emphasis on personalized coverage options, Farmers helps landlords protect their properties and achieve financial stability, offering peace of mind through comprehensive policies.

Key features:

• Named-peril coverage: Select specific perils for coverage, such as water damage from bursting pipes, loss of rent coverage, and other structures.
• Optional comprehensive property coverage: Protect against damage from weather events and other covered perils.
• Landlord liability coverage: Get help covering hospital bills and lost wages if a tenant gets injured on the property and the landlord is found legally responsible.
• Tenant screening service: Access a quick and reliable way to screen potential tenants through TransUnion, providing in-depth suitability reports within minutes.

Trustpilot rating: Bad (1.4 stars out of 5 from 177 reviews as of August 2024)

Foremost

Foremost Insurance Group offers specialized landlord insurance designed for the unique needs of property owners, with options for a wide variety of rental properties. Foremost provides flexible and customizable coverage packages so landlords can tailor their policies to meet their specific requirements.

Key features:

• Rental property types: Cover one-to-four family dwellings, properties rented to students, and short-term vacation rentals.
• Customizable coverage packages: Choose from base policies with add-ons or select from the Landlord package or Landlord Platinum package.
• Flexible payment plans: Use various payment methods, such as online payments, mail, and electronic funds transfers.
• Discounts for associations: Save money as a member of landlord associations.

Trustpilot rating: Poor (2.3 stars out of 5 from 6 reviews as of August 2024)

GEICO

GEICO offers a broad range of insurance products outside of landlord insurance. Its extensive suite of policies, including auto, home, motorcycle, and more, makes it convenient for customers to bundle their insurance needs.

Key features:

• Customizable landlord coverage: Choose options for different property types, including condos, single-family homes, and townhouses, with coverage tailored to each.
• Wide variety of insurance policies: Access multiple insurance products, such as auto, home, motorcycle, umbrella, and pet insurance.
• Liability, vandalism, and theft protection: Protect against legal claims if someone gets injured on your rental property and get coverage for vandalism damage and theft of landlord-owned items from the property.
• Multi-policy discounts: Save when bundling landlord insurance with other GEICO insurance products.

Trustpilot rating: Bad (1.3 stars out of 5 from 721 reviews as of August 2024)

Lemonade

Lemonade is a modern insurance provider that leverages technology to offer fast and efficient insurance services, including landlord insurance. Coverage is available to owners of condos and apartments in limited areas, including some parts of Texas.

Key features:

• Wide range of insurance products: Choose from various types of insurance beyond landlord coverage, including homeowners, renters, pet, and life insurance.
• Add-on coverages: Get enhancements, such as Equipment Breakdown Coverage (EBC) for landlord-owned appliances and water backup endorsements.
• AI-driven policy crafting: Utilize an AI bot named Maya to personalize your insurance policies (for those who prefer this method of customer service).
• Social impact mission: Lemonade operates as a Public Benefit Corporation and certified B-Corp, with a legal mission to integrate social impact into its business model.

Trustpilot rating: Excellent (4.3 stars out of 5 from 2,064 reviews as of August 2024)

Liberty Mutual

Liberty Mutual has been in business for over 100 years, supplying a wide array of insurance products that include auto, home, condo, renters, and landlord insurance. They also offer discounts for bundling policies and for long-term claim-free customers.

Key features:

• Customizable landlord insurance: Tailor your policy to cover only what you need, helping to manage costs effectively.
• Landlord insurance discounts: Get savings for bundling multiple policies and maintaining a claim-free history for five years or more.
• Inflation protection: Adjust coverage limits to align with inflation, helping ensure adequate protection over time.
• Reputation and reliability: Gain a long-standing commitment to customer service and financial stability, providing peace of mind for landlords.

Trustpilot rating: Bad (1.1 stars out of 5 from 411 reviews as of August 2024)

Mercury

Known for competitive pricing and extensive coverage options, Mercury helps landlords safeguard their investments with policies that cover single-family homes, duplexes, triplexes, and fourplexes. They also provide discounts for properties equipped with protective devices.

Key features:

• Broad coverage options: Protect against perils, such as fire, lightning, wind, hail, smoke, and sudden plumbing leaks.
• Fair rental value coverage: Pay for lost rental income if your property becomes uninhabitable due to a covered loss, with options for extended fair rental value.
• Libel and slander protection: Get coverage against claims of libel, slander, wrongful eviction, and invasion of privacy.
• Homeowners association assessment: Gain additional coverage if an HOA levies an assessment for common area repairs due to a covered loss.

Trustpilot rating: Bad (1.7 stars out of 5 from 22 reviews as of August 2024)

Nationwide

Nationwide offers a broad range of products to protect individuals, businesses, and their futures. From its origins as a mutual auto insurance company for Ohio farmers, Nationwide has grown to provide home, auto, life, commercial, and specialty health insurance alongside retirement and investment solutions.

Key features:

• Multi-product offerings: Choose from a comprehensive suite of insurance products, including car, motorcycle, homeowners, pet, farm, and commercial insurance, in addition to annuities, mutual funds, retirement plans, and specialty health services.
• Customizable property insurance: Get tailored protection for homes, condos, and rented apartments, covering personal property and liability.
• Flood insurance options: Nationwide encourages proactive flood insurance coverage, recognizing that virtually everyone lives in high-risk or low-risk flood zones.
• Longstanding reputation: With a history of serving generations, Nationwide prioritizes protecting what matters most to its members.

Trustpilot rating: Bad (1.5 stars out of 5 from 98 reviews as of August 2024)

State Farm

State Farm has been an insurance provider for over 100 years, delivering a diverse array of insurance and financial services. Its extensive product lineup includes auto, home, life, and rental property insurance, helping customers customize their protection and find ways to save.

Key features:

• Rental property insurance: Get specialized policies for rental dwellings and rental condo units, protecting property, liability, and loss of rental income from covered claims.
• Customization and savings: Obtain customizable plans with potential savings when bundling multiple policies or personalizing coverage options.
• Financial services: Access financial products like mutual funds, annuities, educational savings, and retirement planning.
• Future-forward approach: State Farm continually develops products and solutions to meet ever-changing customer needs with a focus on innovation and reliability.

Trustpilot rating: Bad (1.7 stars out of 5 from 628 reviews as of August 2024)

Travelers

Known for their broad range of products, Travelers offers tailored coverage options to meet the diverse needs of their customers. Its landlord insurance protects rental properties, helping ensure peace of mind for property owners.

Key features:

• Extensive range of insurance products: Get auto, homeowners, business, pet, motorcycle, and flood insurance through trusted partners.
• Comprehensive landlord insurance: Obtain coverage for single-family homes, multi-family homes, condos, and apartments with protection for liability, property, and loss of rental income.
• Optional coverages: Acquire premises liability and medical payments coverage, providing additional protection for landlords.
• Customer-focused tools: Utilize easy-to-use tools for managing claims and accessing policy information, ensuring a seamless customer experience.

Trustpilot rating: Bad (1.6 stars out of 5 from 40 reviews as of August 2024)

5 tips for choosing the best insurance for a Texas rental property

1. Assess your specific needs and risks: Tailor your coverage based on factors like property location, age, and tenant profile to ensure comprehensive protection.
2. Compare quotes from multiple insurers: Gathering quotes from several providers helps you find the best balance between cost and coverage for your distinct needs.
3. Read policy details carefully: Scrutinize exclusions, limits, and deductibles to avoid unexpected gaps in your coverage.
4. Use a company focused on landlord insurance: Insurance companies specializing in landlord policies can streamline the process by providing easy comparisons and customized advice.
5. Research customer service and claims support: Prioritize companies with strong reputations for customer service and efficient claims processing to help ensure hassle-free support when needed.

FAQs about Texas landlord insurance

What is the difference between landlord insurance and homeowners insurance?

While homeowners insurance protects your primary residence, landlord insurance is specifically for rental properties. It includes coverage for property damage, liability protection in case a tenant or visitor gets injured, and loss of rental income if your property becomes uninhabitable due to a covered event.

Does Texas require landlords to have insurance?

Texas has no law requiring landlords to get insurance for their rental properties. However, if you have a mortgage on your rental property, your lender may require you to purchase landlord insurance as part of the loan terms.

Even if not mandated by law or your lender, anyone renting out a home, apartment, condo, or other unit should consider investing in landlord insurance.

This specialized coverage protects your investment from numerous risks, including property damage, liability issues, and loss of rental income, offering peace of mind and financial security.

Potential risks facing Texas landlords

Natural disasters

• Hurricanes
• Tornadoes
• Flooding
• Wildfires

Tenant-related risks

• Non-payment of rent
• Property damage
• Illegal activities
• Tenant turnover

Legal liabilities from tenant injuries or disputes

• Injuries on property
• Discrimination claims
• Lease disputes
• Habitability issues

What factors affect the cost of landlord insurance in Texas?

Here’s a look at some of the key elements that affect insurance premiums:

• Property location: The geographical location of your rental property can significantly affect insurance costs. Properties in areas prone to natural disasters like hurricanes or floods typically have higher premiums due to the increased risk.
• Age and condition of the rental property: Older properties or those in less-than-ideal condition may attract higher premiums. That’s because these properties are more likely to require repairs or be susceptible to damage.
• Coverage options and limits: The type and amount of coverage you choose can directly impact your insurance costs. More comprehensive policies with higher coverage limits are typically more expensive but offer greater protection.
• Deductibles: The deductible is how much you pay out-of-pocket before your insurance kicks in. Higher deductibles generally result in lower premiums, but you should weigh this against the potential out-of-pocket costs for a filed claim.
• Claims history: If you or your property have a history of frequent claims, even from a previous owner, insurers may view you as a higher risk and charge higher premiums. Maintaining a good claims history can help keep your insurance costs down.

Can you get a discount for landlord insurance in Texas?

Yes, there are several ways to get discounts on landlord insurance in Texas:

• Many insurers offer discounts when you bundle multiple policies, such as insuring more than one rental property.
• Installing safety and security features like smoke detectors, burglar alarms, and deadbolt locks can also lower your premiums by reducing the risk of damage or theft.
• Additionally, long-term policyholder discounts may be available if you maintain your policy with the same insurer over several years, rewarding your loyalty with reduced rates.

What does landlord insurance cover (and not cover) in Texas?

Landlord insurance in Texas offers various coverage options tailored to protect your rental property and investment. Here’s a list of the primary coverages typically available. 

What landlord insurance in Texas can cover

• Liability insurance: This insurance covers expenses related to lawsuits from tenants or other third parties claiming bodily injury or property damage.
• Premises medical protection coverage: If a tenant gets injured in a covered event while on your property, this covers their medical expenses.
• Other structures coverage: This coverage protects against losses from damage or destruction of detached structures like sheds and fences.
• Loss of income coverage: If your rental property becomes uninhabitable due to a covered loss (e.g., fire or vandalism), this reimburses you for lost rental income and other continuing expenses.
• Dwelling coverage: This insurance covers repairs to your rental property’s dwelling and attached structures from perils like fire, smoke, vandalism, windstorms, hail, or tenant-caused damage.
• Optional coverage: Additional coverages can include rent guarantee insurance, natural disaster insurance, vandalism coverage, burglary coverage, rental property under construction coverage, building code coverage, employer liability insurance, and landlord contents insurance.

What landlord insurance in Texas will not cover

While landlord insurance provides extensive protection, you should be aware of certain exclusions:

• Personal property loss: Landlord insurance generally doesn’t cover the loss, theft, damage, or destruction of your personal property.
• Water or sewer backup damage: Issues like a backed-up sewer line causing flooding in a basement are not generally covered unless you add a specific endorsement to your policy.
• Intentional or malicious acts: If you or someone else deliberately causes damage to the property or harm to tenants (e.g., vandalizing your own property to file a claim), landlord insurance does not cover these acts.
• Flood or earthquake damage: Standard policies don’t cover flood or earthquake damage, though additional endorsements may be available.
• Routine maintenance costs: Regular maintenance and wear and tear on your rental property aren’t covered by landlord insurance.

How often should you review your landlord insurance policy?

Regularly reviewing your landlord insurance policy is essential to help ensure it continues to meet your evolving needs and adequately protects your investment. Over time, changes in your rental property, tenant turnover, local regulations, or even market conditions can impact the coverage required in your area.

As a general rule of thumb, consider reviewing and updating your policy at least once a year or immediately following any significant changes to your property or rental agreements. This proactive approach helps you address potential gaps in coverage and take advantage of new policy features or discounts that may be available.

Steadily: Your trusted partner for landlord insurance

Protect your rental property with Steadily’s comprehensive landlord insurance. Its policies cover a wide range of risks that can impact your investment, from fires, windstorms, and water leaks to vandalism and more. 

You can benefit from liability protection for tenant injuries, repair coverage for malicious mischief, and even riot and civil commotion protection. Steadily’s customizable policies help meet your unique needs, offering unmatched flexibility and security.

Enter your rental property address to get an instant online quote for landlord insurance in Texas today.