What to Know About Rental Property and Landlord Insurance?

If you live in Austin, TX, and plan to use a building on your property as a rental unit, such as a guest house or a converted garage, you may be wondering whether you need landlord insurance. When you contact Armadillo Insurance Agency, our team can help you understand the coverage needed to protect yourself and your property.

About Landlord Insurance in Austin, TX

Landlord insurance is not only for large apartment complexes or rental homes. It is also recommended for homeowners who want to rent a structure on their property.

In Texas, landlord insurance is not legally required. However, if you have a mortgage on your property, your lender may require you to have additional protection for the building you plan to rent out.

While a standard homeowners policy protects your primary residence, it does not usually cover buildings used as rental units. This is why a separate landlord policy is strongly recommended.

What Does Landlord Insurance Cover?

• Landlord insurance typically includes liability coverage. If someone is injured inside the rental unit, this coverage can help protect you financially.
• If the rental structure is damaged by a covered event such as fire, theft, or vandalism, the policy helps cover the cost of repairs. If the property becomes unlivable due to the damage, you may also receive compensation for lost rental income.

Although you are not responsible for a renter’s personal belongings, it is recommended that tenants carry their own renters’ insurance to protect their items.