If you rent out a home, condo, duplex, or small multifamily building in Texas, your standard homeowners policy probably will not respond when you file a claim. Landlord insurance, also called a Dwelling Fire policy or DP3, is built specifically for rental properties.
What is landlord insurance?
A landlord policy covers the structure of your rental property, your liability as the property owner, and the rental income you would lose if a covered loss makes the property uninhabitable. It is the right fit for long-term, short-term, and seasonal rentals.
Why you need it:
- Required by most lenders for investment property loans
- Standard homeowners policies often exclude rental use
- Replaces rental income while the property is being repaired
- Provides liability protection against tenant and visitor injury claims
- Available for single-family rentals, condos, and small multifamily buildings
What it typically covers:
- Dwelling – the structure of the rental
- Other structures on the property
- Personal property used to maintain the rental (lawn equipment, appliances)
- Loss of rental income
- Premises liability
- Optional vandalism, glass breakage, and short-term rental endorsements
Frequently asked questions:
Can I use my homeowners policy for a rental?
Generally no, once a property is regularly rented out, most homeowners policies will not respond to a claim. A DP3 landlord policy is the proper fit.
Do I need a separate policy for short-term rentals (Airbnb, VRBO)?
Yes, in most cases. Standard landlord policies are written for long-term tenants. Short-term rental coverage requires either a specific endorsement or a dedicated short-term rental policy.
Should my tenant carry renters insurance?
We recommend you require it in the lease. Renters insurance covers your tenant’s belongings and liability – neither of which is covered by your landlord policy.