Insurance Requirements
We require and you need to have insurance for your property even though you are not living there. Call your agent and let them know you will no longer occupy the property as your primary residence. You will need to ask them to change your homeowner’s policy to a “Fire and Liability” or “Landlord” policy. This is VERY important, or the insurance company can deny any claim if you are no longer occupying the premises.
We ask that you list us as an additional insured party on the policy so that we can file claims on your behalf. A vandalism rider is usually required if the house is vacant for more than 30 days so please keep this in mind during the time we are marketing your property for rent
If you own a condominium, be sure to have your own policy. It is very reasonable and will typically cover liability expenses such as water overflowing and damaging the unit below is the most typical claim for condos.
Unless you have flood insurance, the standard insurance policy will not cover damage due to the rising water. If your property has had any problems with ground water coming in, you might want to check with your agent about purchasing flood insurance.
There are three types of policies a home owner can buy in Texas.
Personal Policies – include TDP-1, TDP-2, TDP-3, Texas dwellings
- Policies TDP – Basic actual cash value
- TDP-2 Broad replacement coverage
- TDP-3 Special broad coverage
Tenant Insurance
In addition to the insurance you have for your property, the lease requires tenants to have renter’s insurance. This covers their personal possessions and any damage resulting from their negligence. It does not cover your home or any damage to your home, unless the insurance company and/or the courts find that the damage was caused by tenant negligence.
Recommendations
We recommend a TDP-3 policy with accidental water coverage and fair rental value and liability.
Commercial Policy – If you own several properties or your property is in a business name, we recommend a commercial policy.
Liability – We recommend you endorse your homeowner’s policy to extend coverage to your rental properties if possible, check with your home insurance agent. If not, add it to your TDP policy or buy a separate policy. This will protect your asset from a lawsuit if someone is injured on the property. Normally the maximum limit available is $500,000.00
Umbrella – If your assets are over $500,000.00 we recommend an Umbrella Policy for 1, 2 or 5 million. This coverage is available for commercial policies too.
What if my previous personal home is not a rental?
If you are renting a house previously lived in, you need to advise your insurance company. The policy coverage’s are different.
What if the property is vacant?
You have an obligation to notify your agency if your rental is vacant over 30 days. If you don’t any claim may be denied due to a vacancy clause in your policy.