Texas Landlord Insurance

Texas landlord insurance literally takes the risk out of renting out property. As a landlord, you know that renting out property is a very risky activity. A house or apartment building is a very expensive investment and you don't want it to lose a significant amount of value in a short time. You don't want to have to lose a lot of value in the long term either, which is not unlikely in some cases.

Some landlords in Texas, don't have any form of property insurance on the buildings that they rent. This is either because they don't see the importance or they don't realize that this option is available to them. Then there are those who opt for standard house insurance rather than Texas landlord insurance. There is actually quite the difference between the two.

One main difference is that Texas homeowner's coverage does not protect a landlord against the loss of rent. You also can't add on protection that covers the damages that tenants can do to a property. By not being able to cover these items with your landlord insurance in Texas, you are leaving yourself quite vulnerable to the financial consequences that can occur. The financial consequences are such things as a loss of income, not being able to recover the property, or recovering the property at an expense.

Special Structure

There is a special structure to coverage that is designed to protect landlords. The structure is specific to the needs of a landlord rather than a homeowner living within the property. When you are not living there, your requirements are different. For instance, you don't have to cover the contents within. The tenants carry their own contents insurance. The contents are not yours, so you don't have to cover them.

Here is another example of how the structure of Texas landlord insurance is different: If a disaster would occur that would make the property unlivable, then your Texas landlord insurance will pay for the repairs or rebuilding and will take care of the missing rental income during the repair process. That way you don't lose any income while getting back on your feet. This is something that homeowner's coverage cannot provide because there is no income that is received from a regular home.

In regards to loss of rent, there is that occasion when a Texas landlord may have a difficult time obtaining rent from a tenant. This can benefit you a great deal if you have a mortgage on the property and rely on the rent to pay that mortgage. Not receiving the rental payment could result in you not being able to pay the mortgage and that is not something you want to deal with.

All-in-all, Texas landlord insurance protects you all the way around when it comes to your Texas rental property. You will want to obtain insurance quotes so that you can compare the different policies that may meet your needs. You can then choose the insurance policy that has everything that you want. It is good to be an insured landlord in Texas than one that is not insured.

Don't be Underinsured

One issue that some landlords tend to face with their Texas landlord insurance is being underinsured. This means not having high enough limits to cover a rebuild of the property. So if the property is worth $80,000 and you are 20% underinsured, you are going to be $16,000 short if you have to rebuild. This is a rather significant amount.

If you are $16,000 short on your Texas landlord insurance, then that is $16,000 that you are going to have to come up with so that you can rebuild. Some landlords may have the money in the bank, while others don't. For others, they have to finance the amount, which is another expense. Some landlords may not even have the room for the financing, especially if other properties have financing.

If the property is so highly valued that you reach the limits of your Texas landlord insurance, you may consider adding a blanket policy to the existing coverage. This means adding an additional dollar amount on to what you already have so that you can be completely covered rather than partially covered. This will then make things the way they are supposed to be and that is you paying just your premium to get the coverage that will completely cover the property.

So make sure you have Texas landlord insurance rather than homeowner's on the property. Although you own it, you must have the appropriate coverage for what you are doing. That way you can have everything covered the way that it needs to be covered. You won't be left financially vulnerable. This takes a lot of the stress out of renting properties to others.

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