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Discover the essential insurance coverage you need when renting out your house in the US. Find out how to protect your property, liability, and income with the right insurance policies.


Renting out your house can be a lucrative endeavor, but it also comes with its fair share of risks. As a responsible landlord, it's crucial to understand the insurance coverage you need to protect your property, liability, and rental income. In this article, we will explore the different types of insurance you should consider when renting out your house in the US, ensuring your peace of mind and financial security.

Why is Insurance Important When Renting Out Your House?

Renting out your house opens up a range of potential risks that may not be covered under your standard homeowner's insurance policy. Without adequate coverage, you could be left vulnerable to significant financial loss in case of accidents, property damage, or liability claims. Here's why insurance is essential when you rent out your house:

  1. Protecting Your Property:
    • Rental Dwelling Insurance: This policy covers the physical structure of your rental property, including damage caused by fire, storms, vandalism, or theft. It typically includes coverage for attached
Property insurance is a type of insurance policy that can provide coverage for property owners or renters. Examples of property insurance include homeowners, renters, and flood insurance policies. These policies can provide coverage for damages caused by fire, flooding, theft, weather, and other risks.

Is landlord insurance required in Texas?

Though a landlord insurance policy is not mandated in Texas, getting Texas landlord insurance is still a wise thing to do. It works if you are renting out your personal property because homeowners insurance will not protect you from any damage or loss related to your rental property.

What is the main reason someone would want to have and need to have renters insurance?

Renters insurance protects your belongings from loss, damage, or destruction following things like burglaries, fires, tornadoes and other covered events. Plus, renters insurance also protects your liability (and your money) if someone is injured at your rental home or apartment.

How much is landlord insurance in California?

The average monthly cost of landlord insurance in California is $112 or about $1,341 per year. However, bear in mind that the final price will vary for all landlords depending on where you reside, your building, liability coverage options, your credit history, deductible, and other plan options.

What are the three 3 main types of property insurance coverage?

Understanding Property Insurance There are three types of property insurance coverage: replacement cost, actual cash value, and extended replacement costs.

What is the difference between a dwelling policy and a homeowners policy?

A: Think of home insurance as a package of protection. Dwelling coverage is simply one part of that package. It covers the home itself —not the contents or land. Just the structure.

Is the renter responsible for paying renters insurance?

Renter's insurance is taken out by tenants to cover personal property and liability owned by the tenant and not the responsibility of the landlord.

Frequently Asked Questions

Why would someone want to have renters insurance if their building owner has insurance?

Renters insurance helps protect the renter. In many cases, the insurance a landlord carries covers only the building. Personal property loss or damage, caused by theft, vandalism or fire are typically not covered by the landlord's policy.

How long should a renters insurance claim take?

Insurance companies in Texas have 35 business days to settle a claim after it is filed. Texas insurance companies also have specific time frames in which they must acknowledge the claim and then decide whether to accept it, before paying out the final settlement.

Do I need landlord insurance in Texas?

Landlord insurance isn't required in Texas but it is worth having this policy as it can protect you if you are renting and managing a personal property.


What type of insurance is needed for rental property in Texas?
Insurance for Rental Properties in Texas
  • General Liability.
  • Professional Liability.
  • Business Owner's Policy.
  • Business Property.
  • Commercial Auto.
  • Equipment Coverage.
  • Workers Compensation.
How much is landlord insurance in Texas?
$850 to $2500 How Much is Landlord Insurance in Texas? The Short Answer: The average landlord insurance policy in Texas costs typically about 15% less than homeowners insurance and anywhere from $850 to $2500 depending on the type, location, and other risks of the investment property.
What I wish I knew before renting?
  • Make sure you understand exactly what you're paying for.
  • Be realistic.
  • If something is broken, tell someone immediately.
  • Take notice of the location.
  • Remember what your priorities are.
  • Check out the entire building.
  • Accept that not everything will go according to plan.

What type insurance do i need when i rent out my house

What type of insurance needed for rental property in Texas? Landlord insurance is a policy purchased specifically for rental properties. Most landlord insurance policies provide coverage for property damage, liability protection, and rental income loss. A landlord insurance policy costs about 25% more than a homeowners insurance policy.
How to rent out your house in Texas? How to Become a Landlord in Texas Step-by-Step
  1. Check Local Requirements for Landlord License. In the state of Texas, getting a landlord license is not required.
  2. Find the Right Property.
  3. Prepare Your Property.
  4. Advertise Your Property.
  5. Screen Potential Tenants.
  6. Sign the Lease Agreement.
Is renters insurance a need or want? Yes. If you can afford it, renters insurance is usually worth it. It will protect your belongings, provide liability coverage, and may cover your personal items when you travel. Renter's insurance protects you from a long list of perils, as well.
  • What is the point of renters insurance?
    • Renters insurance protects your personal property in a rented apartment, condo or home from unexpected circumstances such as theft, a fire or sewer backup damage – and will pay you for lost or damaged possessions. It can also help protect you from liability if someone is injured on your property.
  • Is lemonade insurance good?
    • Is Lemonade a good insurance company? Overall, Lemonade is a good insurance company. It offers fairly standard insurance coverage at an excellent price. However, customer service reviews are mixed, so it may take longer to make repairs after filing a claim.

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