(800) 253-1482Can You Get Renters Insurance for a Property You Own in Texas?
Summary: Renters insurance covers tenants' personal belongings and liability, while homeowners insurance protects property owners' structures and liability. Landlords renting out their homes need landlord insurance, not renters insurance, to cover rental-related risks. Owning a home you live in typically requires homeowners insurance, while renting a residence needs renters insurance for personal property and liability coverage. It's essential to understand these distinctions to ensure proper protection, and consulting a licensed insurance agent in Texas can help clarify the best coverage for your situation. Estimated Read Time: 4 mins
In Texas, renters insurance covers tenants' personal belongings and liability, while homeowners insurance protects property owners by covering the structure, fixtures, and liability. If you're renting out your home, renters insurance won’t suffice—you'll need landlord-specific coverage to address rental-related risks and if you are living in the property, a home insurance policy will likely be the right coverage. Understanding these distinct insurance purposes is crucial for Texas property owners with unique situations who might otherwise find themselves inadequately prepared for perils that may come.
Can You Have Homeowners Insurance and Renters Insurance?
While it’s technically possible to hold both homeowners and renters insurance, it’s rarely necessary.
Homeowners insurance covers individuals living in their primary residence, while renters insurance is for those leasing a property.
If you own a home and rent it out, you don’t need renters insurance—instead, you need landlord insurance.
This specialized policy offers protection against property damage, liability, and loss of rental income, providing essential coverage for tenant-related incidents and safeguarding your financial interests as a landlord.
However, if you’re renting a home you live in, it’s likely you will need home insurance.
These situations are unique and complex and it’s always best to speak with a licensed insurance agent to ensure that you are adequately protected.
When to Get Home Insurance
Ideal for those who own their residence in Texas, homeowners insurance protects your home, and other structures on your property, personal property, against liability risks, and more.
By mitigating these risks, it helps homeowners avoid significant out-of-pocket expenses from unexpected events.
When to Get Renters Insurance
If you're renting your home, a renters insurance policy is necessary to protect personal property from theft, fire, and other covered events.
Unlike homeowners insurance, it focuses on your possessions and provides liability coverage for accidental property damage or visitor injuries.
This coverage is not the responsibility of the landlord though it may be required as a term and condition of your lease agreement.
Related Read: 5 Considerations About Texas Renter’s Insurance
When to Buy Multiple Policies
Renters and homeowners insurance typically apply only to your primary residence, so you usually can’t have both.
If you own a home and rent out another, you’ll need homeowners insurance for your residence and landlord insurance for the rental property.
If you rent your living space and own an investment property, renters insurance covers your belongings, while landlord insurance protects your rental property.
Landlord insurance is essential for safeguarding against risks associated with renting out a property you aren’t living in.
Homeowners Insurance vs. Renters Insurance
Homeowners and renters insurance share many similarities, offering coverage for personal property, liability, additional living expenses, and medical payments.
The key difference lies in who the policies are designed for—homeowners insurance protects the structure of the home and the owner’s liability, while renters insurance focuses on safeguarding the tenant’s belongings and liability within a rented space.
Below, we're looking at some of the key similarities and differences you'll find comparing renters insurance vs. homeowners insurance:
Dwelling Coverage
When comparing homeowners vs. renters insurance, dwelling insurance is a key difference that shouldn't be ignored.
While a homeowners policy will protect a home's physical structure, renters' policies focus on just the personal belongings of a tenant.
The perils they protect against are similar, including losses from fire, hail, or losses pertaining to liability or theft
However, they are also similar in what the perils they exclude, such as earthquakes, flooding, and issues related to maintenance.
Cost and Discounts
The cost of renters insurance vs. home insurance is different and homeowners are going to pay more.
This is because while both policies cover personal property and losses involving liability, homeowners insurance is also responsible for protecting the actual structure of the home, along with other buildings on the property.
A renters policy is typically only a few hundred dollars annually, whereas home insurance can exceed $1,000 per year.
Fortunately, both options offer discounts, including bundling, that can help you keep premiums low whether you're a renter or homeowner.
Compare Quotes for Renters Insurance and Home Policies in Texas
From homeowners to renters to landlords, Freedom Insurance Group is here to help.
We partner with top-rated carriers offering coverage throughout Texas to help you protect what matters most through personalized protection at the lowest possible cost.
To compare homeowners vs. renters insurance or any other policy you might need, ask an agent today by clicking or calling the number above, or get a free home insurance quote using our no-obligation tool below:
