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What is landlord insurance?
Texas rental properties can be profitable long-term investments, but any investment in real estate comes with certain risks. Landlords need to consider what they could face if someone is hurt on their property, a leased residence is damaged, or something else happens. Purchasing landlord insurance can be an important part of safeguarding against risks like these.
Landlord insurance provides customizable coverage for rental properties. Policies may offer landlords protections for their buildings, themselves, and the income they receive.
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Who in Texas should carry landlord liability insurance?
A landlord policy is generally recommended for anyone in Texas who has residential income properties. This includes landlord liability insurance coverages, building coverages, and other protections.
Many types of landlords purchase these policies, including individuals who have a few properties, businesses that have several properties, and investment firms with large portfolios. Property management services may also get a policy that has certain coverages, like landlord liability insurance protection.
What coverage options do landlord policies make available?
Landlord policies can offer a number of coverages. Many policies have the following as optional or standard protections:
- Property Damage Insurance: Usually covers the physical building(s) that a landlord owns. May also cover any landlord-owned equipment, such as yard equipment and appliances, that are on the premises.
- Landlord Liability Insurance: Usually covers the landlord for legal expenses and settlements if someone gets injured on the property and sues. Could cover injuries to tenants, their guests or others.
- Legal Assistance Insurance: Usually covers legal fees that aren't associated with liability suits. May cover the costs associated with obtaining a judgment, evicting a tenant, or similar proceedings.
- Loss of Rental Income Insurance: Usually covers lost rental income if the property is damaged by a covered peril. May make up for lost rent until repairs are complete.
- Rent Guarantee Insurance: Usually covers lost rent when tenants are unable to or otherwise don’t, pay rent.
- Commercial Umbrella Insurance: Usually provides additional limits that supplement other liability coverages.
Are landlord policies suitable for commercial properties?
Typically, landlord policies are designed for insuring residential properties. These could be single-family homes, duplexes, townhomes or multifamily properties, but they usually don’t include office buildings, shopping centers or other non-residential properties.
For a commercial property that’s not residential, commercial property insurance policies tend to be a better choice.
Are landlord policies suitable for mixed-use investment properties?
Landlord policies alone normally don’t meet all of the coverage needs that mixed-use properties present. The coverages found in landlord policies certainly are needed for most of these properties’ residential units, however.
Mixed-use properties typically should be protected with landlord coverages and other coverages. An insurance agent specializing in landlord policies and other investment property policies will be able to find a combination of coverages that’ll protect mixed-use properties well.
Do homeowners need landlord policies if renting out a spare bedroom?
Homeowners planning to rent out a portion of their house, like a spare bedroom or in-law suite, should check that they have adequate coverage in place. This primarily is in reference to landlord liability insurance.
A full landlord policy usually isn’t necessary for homeowners to get sufficient landlord liability insurance coverage. Coverage can often be had through a homeowners policy, perhaps with an endorsement. Alternatively, many online short-term rental platforms offer certain coverages through their sites.
Homeowners who aren’t sure how best to insure themselves with landlord liability insurance coverage can work with a specialized agent. An agent who knows landlord coverages well will be able to determine how any protection that’s needed can best be obtained.
Where can Texas landlords get landlord insurance for their properties?
For help insuring a residential investment property that’s located in Texas, contact the independent insurance agents of Ramey King Insurance. Our agents have the expertise needed to find the right landlord insurance policy for your property.
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