Landlord insurance in Texas is usually a dwelling policy on the house you rent out, not a homeowners policy. It protects the building itself, other structures such as a detached garage or fence and, on forms that include it, the rent you lose while a covered loss is repaired. Liability is often an add-on. No Texas law requires you to buy it, but if you financed the rental, your lender will.[1][3][8] Two Texas details shape the purchase: on the coast, wind and hail may have to come from the Texas Windstorm Insurance Association (TWIA), and most insurers stop covering a house that sits vacant for 60 days or more.[1][7]
This guide is for a Texas owner renting out a single-family house, a duplex or a townhouse, including an owner who moved out and kept the old home as a rental. Our landlord insurance page lists what a rental policy covers and what we need to know about the property.
Is landlord insurance required in Texas?
No. TDI's home insurance guide says "the law doesn't require you to have home insurance," but "if you still owe money on your home, your lender will require you to have it."[1] The same applies to a rental with a mortgage. TDI also notes that a lender will probably require an all-risk policy, which on a rental means an open perils dwelling form rather than a basic named perils one.[2]
Don't leave a rental on your old homeowners policy without telling the insurer. A homeowners policy is written for a home its owner lives in, and a change in occupancy needs to be reported to the insurer.
What does a Texas dwelling policy cover?
Texas dwelling policies come in the same three levels as they do nationally. TDI's orders describe them by the old Texas Dwelling Policy names, TDP-1, TDP-2 and TDP-3, and insurers today file their own versions that are "analogous" to those forms.[3]
| Basic (TDP-1 style) | Broad (TDP-2 style) | Special (TDP-3 style) | |
|---|---|---|---|
| How the building is covered | Named perils. On the FAIR Plan's TDP-1, fire and lightning are required and other perils are optional[4] | Broad named perils[3] | All risk: any direct physical loss not excluded[3] |
| Loss settlement | FAIR Plan TDP-1: actual cash value only, no replacement cost option[4] | Depends on the insurer's form | Depends on the insurer's form. Read the declarations |
| Fair rental value | FAIR Plan policies: loss of use at 10% of the dwelling amount, where the policy includes it[4] | Depends on the form | Included on the form TDI describes[3] |
| Landlord liability | FAIR Plan TDP-1: not available[4] | Usually an add-on | Usually an add-on. One Texas DP-3 program offers $100,000 to $500,000[8] |
| Theft | FAIR Plan TDP-1: not covered[4] | Depends on the form | Personal property named perils include theft on the form TDI describes[3] |
Named perils forms are less expensive but only pay when the loss is caused by one of the perils listed, while all-risk forms cover anything that is not excluded. TDI notes that even all-risk policies usually leave out termites, wear and tear, sewer backup, flood and earthquake.[2] Our DP-1 vs DP-3 guide compares the three forms in more detail.
Check occupancy before you buy, because not every Texas dwelling program takes houses rented to tenants. One carrier's Texas DP-3 guide, for example, lists "Owner Occupied only" and "Primary and Secondary Residences only" among its eligibility rules.[8] A rental needs a program written for rentals.
Does my landlord policy cover my tenant's belongings?
No. TDI explains that renters insurance covers a tenant's clothes, furniture and other personal property, and "won't pay to fix the house or apartment building. The building owner's policy does that."[1] Your policy can cover property you own as the landlord. TWIA's dwelling policy, for example, covers maintenance equipment, floor coverings, window shades, refrigerators and stoves "that you own as a landlord" at the described location.[6]
How do I insure a rental on the Texas coast?
With up to three policies. In Aransas, Brazoria, Calhoun, Cameron, Chambers, Galveston, Jefferson, Kenedy, Kleberg, Matagorda, Nueces, Refugio, San Patricio and Willacy counties, and in Harris County east of Highway 146, a dwelling policy may exclude wind and hail.[7] TWIA sells wind and hail coverage there to owners turned down by at least one private insurer, for buildings certified to the windstorm code.[7] Its dwelling policy can insure a rental house, including the landlord-owned appliances above.[6]
Flood is the third policy. TWIA's dwelling policy states that it doesn't cover flood "even if hurricane winds and rain caused the flood to occur."[6] Our Texas windstorm and FAIR Plan guide explains TWIA's eligibility rules and limits.
What happens when the house is vacant between tenants?
Coverage can shrink. TDI's guide lists "losses that occur if your house is vacant for the number of days specified by your policy" among the things most policies don't cover, and says most companies stop coverage after a house has been vacant for 60 days or more, though they usually don't stop liability coverage.[1] A long vacancy is also a reason an insurer may nonrenew.[1]
So if a turnover runs past two months, a renovation between tenants drags on or the house sits empty waiting to sell, call your insurer before the vacancy passes the policy's limit. Ask whether coverage can continue during the vacancy or what type of policy you would need for a vacant dwelling. The FAIR Plan is not a fallback for an empty house, because TFPA lists vacant property among the reasons it can decline an application.[5]
Can I rent it out short term?
Check first. TDI says "most policies won't pay for damages or injuries that occur during short-term rentals," and tells owners who rent for short-term lodging to ask their agent whether they're covered.[1] A long-term lease and a nightly rental are different risks, and the policy has to match the one you run.
What if no insurer will write the rental?
The Texas FAIR Plan is the insurer of last resort. It writes a dwelling policy, the TDP-1, for one- and two-family rental dwellings, and it had 48,420 TDP-1 policies in force on March 31, 2026, 31,236 of them in Harris County.[4] To apply you must have been declined by at least two insurers licensed to write and writing property insurance in Texas, and you must reapply in the private market every two years.[5]
Know what the TDP-1 leaves out: no liability, no theft, actual cash value only, and in the coastal catastrophe area no wind and hail, which go to TWIA.[4] The maximum dwelling coverage on a TFPA policy is $1,000,000, and other structures get 10% of the dwelling amount.[4] TFPA can also decline a residential dwelling used for business.[5]
How much does landlord insurance cost in Texas?
There is no official average for Texas rental dwelling policies that we can point you to, so we won't quote a range. The price follows the house and its form: the location and wind exposure, age, roof and construction, the dwelling amount, your deductible, whether the form is named perils or all risk, and whether you add liability and fair rental value. On the coast, the TWIA premium is a separate bill.[7]
Frequently asked questions
Do I need a special policy if I move out and rent my house?
Yes. Tell your insurer the house is now a rental and move it to a dwelling policy written for tenant occupancy. Some Texas dwelling programs accept only owner-occupied homes.[8]
Does landlord insurance cover lost rent?
Should I require renters insurance from my tenants?
Many landlords do, because the landlord's policy doesn't cover the tenant's belongings.[1] Put the requirement in the lease and ask for proof at move-in.
Is my rental covered if it sits empty for three months?
Possibly not. TDI says most companies stop coverage after 60 days of vacancy, though liability usually continues. Call the insurer before the vacancy passes the policy's limit.[1]
This guide is for educational purposes. It summarizes TDI consumer guidance and orders, TDI's Texas FAIR Plan overview of June 2026, TFPA's eligibility page, TWIA's dwelling policy and eligibility rules, and one carrier's Texas dwelling guide dated 2025, all read in September 2026. Your policy's terms, conditions and endorsements control. Menlo Insurance Services is a licensed property and casualty broker in Texas and California that may earn a commission on a placement. Naming a program here doesn't mean we place it in Texas or that any coverage or price will be available.
The Bottom Line
In Texas, a rental property belongs on a dwelling policy written for tenant occupancy, ideally an all-risk form with liability and fair rental value added. On the coast, plan for TWIA wind coverage and a separate flood policy, and tell your insurer before any turnover runs past 60 days.[1][6][7] If two insurers decline the house, the FAIR Plan's TDP-1 is a basic, temporary answer.[4]
References
- 1.Texas Department of Insurance. “Home insurance guide.” Accessed 2026-09-29. https://www.tdi.texas.gov/pubs/consumer/cb025.html ↩
- 2.Texas Department of Insurance. “Home insurance policies: All risk or named peril.” Accessed 2026-09-29. https://www.tdi.texas.gov/tips/all-risk-or-named-peril-home-insurance-policies.html ↩
- 3.Texas Department of Insurance. “Commissioner's Order CO-03-0110, New Property Endorsements (dwelling policy forms DP 00 02TX and DP 00 03TX).” 2003. https://www.tdi.texas.gov/orders/co-03-0110.html ↩
- 4.Texas Department of Insurance. “Texas FAIR Plan Association Overview, for quarter ending March 31, 2026.” 2026. https://www.tdi.texas.gov/pubs/pc/fair-overview.pdf ↩
- 5.Texas FAIR Plan Association. “Coverage & Eligibility.” Accessed 2026-09-29. https://www.texasfairplan.org/about-us/coverage-eligibility/ ↩
- 6.Texas Windstorm Insurance Association. “TWIA Dwelling Policy, Windstorm and Hail (Form TWDP, edition August 31, 2023).” 2023. https://www.twia.org/wp-content/uploads/TWIA-Dwelling-Policy-HB-3208.pdf ↩
- 7.Texas Windstorm Insurance Association. “Coverage & Eligibility.” Accessed 2026-09-29. https://www.twia.org/coverage-eligibility/ ↩
- 8.Bamboo Insurance (Concert Specialty Insurance Company). “Texas Dwelling Fire & Landlord Quick Reference Guide (Texas DP-3), Ed. 05.05.25.” 2025. https://6041899.fs1.hubspotusercontent-na1.net/hubfs/6041899/Carrier%20Store%20Resources/Bamboo/TX%20Dwelling%20Fire%20&%20Landlord%20-%20DP3.pdf ↩