How Much Renters Insurance Should a Landlord Require in Texas?


As a landlord, there are many different things to consider and lots of moving pieces. At the end of the day, your property is an investment and it’s important to protect it. The last thing anyone wants is to deal with a crushing blow from a loss and have to overcome it rather than raking in profits. A part of this comes down to determining how much renters insurance you should require as a landlord.

This can be a peculiar issue for some, but if you rent out enough properties, you soon understand the importance this protection can bring. After a major loss, picking up the pieces can be difficult for everyone involved. While you aren’t responsible for protecting your tenant’s personal property, without the right coverage they may be left in a bind.

The right coverage can also keep messy liability concerns at bay knowing an insurance policy is there to help with such potential losses. Get to know the right level of coverage, how it can help you and your tenant, and why renters insurance as a requirement can help both parties all around.


How Much Renters Insurance Should a Texas Landlord Require?

The amount of renters insurance you’ll need to require as a landlord in Texas will vary. Landlord insurance won’t cover the personal property of a tenant and they’ll need to have enough coverage to replace their belongings.

Furthermore, the amount of renters insurance they carry should also protect against liability concerns that could cause complications for both parties.

The basic answer is that there is no direct answer, but with market research and speaking with your tenants, you can find an appropriate level of coverage to fit the needs of your renters.  We typically recommend $300,000 in liability coverage for renters insurance.


Can a Landlord Require Renters Insurance in Texas?

Yes, Texas landlords can require renters insurance as a term of a tenant’s rental agreement. These policies help protect against losses involving liability and damage to a tenant’s personal property.

This is a great way to not only protect yourself as a landlord but a way to protect tenants from themselves. Accidents can happen and when they do, it’s important to make sure that everyone is in a position to overcome the losses they bring.

Things such as housing and replacing personal property can be too much for many tenants to overcome, depending on a variety of factors. Such issues mean a setback not only for them but also for your rental business.

The Lone Star State doesn’t make landlords provide their tenants with coverage, so, it can be helpful to understand where to go and how to acquire it if you’re renting a property. If you are a landlord, it’s important to understand as a way of helping tenants and marketing to potential residents.

What Is the Average Cost of Renters Insurance in Texas?

The average price for renters insurance in Texas will be around $20 according to the Texas Department of Insurance (TDI), but there are several factors that can affect the price. Some of these factors include the following:

  • The amount of coverage you need and the value of the personal property being insured.
  • Where the rental property is located.
  • The size of the deductible the policyholder is responsible for after suffering a loss.

In general, a renters insurance policy costs more if it has to insure more valuable items or a larger amount of coverage overall. When carriers determine the amount you’ll pay in premiums, they are all looking at the same thing: risk.

The riskier you are to insure, the more you will pay. For example, if a renter is living in a gated community with a low crime rate, premiums for coverage will be better than for someone in an area where robberies occur more frequently. The same is true for those living in areas more affected by natural disasters compared to areas with milder weather patterns.

It should also be mentioned that paying a higher deductible also generally means lower monthly premiums. This can be a great option for someone looking to keep monthly costs down, however, they will need to come up with a larger lump sum in the event of a loss.

While paying for coverage is never exactly a welcomed sight, it does help that compared to many other insurance policies, renters insurance is quite inexpensive. Of course, it’s still a great idea to shop around for your coverage.

By shopping around and comparing quotes from multiple insurance companies, you can locate not only the best price but the best coverage to fit your needs. Reviewing your coverage, around once a year, is also recommended to ensure that you remain protected with an appropriate level of coverage for both property damage and liability according to your lifestyle.


How Much Liability Insurance Do I Need for Rental Property?

Knowing how much liability insurance you need for your rental property is key. You’re going to need to maintain enough liability coverage to sustain a major loss and protect your finances as well as your real estate business.

But there are two parties involved in renting, both the renter and the landlord. Without both parties having liability coverage, lawsuits are possible due to liability.

There are a few examples of when a lawsuit can occur as a landlord. One example would be visitors or tenants injuring themselves in a common area such as a stairway for multiple apartments. Another example would be your tenant’s guests injuring themselves in a backyard while visiting for a party.

Both of these examples have many different variables that could occur between them and depending on these factors will depend on which policy would go into effect. Because there are usually more people in or visiting a rental property, however, it’s always recommended that more coverage be applied because there is more risk.

While the total amount of coverage required can vary; $300,000 to $1 million in coverage is common. It’s also typically affordable, considering the protection you receive. The right policies are going to help you and your tenants avoid major financial losses, legal issues, and headaches all around.

Because each property is different, as are the needs of each landlord, it’s always a good idea to contact a licensed insurance agent. Receiving a professional overview will help you find personalized coverage that caters to your needs and budget.


Understanding the Differences Between Renters Insurance and Landlord Insurance

It’s important for everyone to understand that renters insurance and landlord insurance are two types of coverage. Both are important, but they both help protect in different ways. Here are some of the ways these policies differ:



A renters insurance policy is going to provide protection for personal property as well as the liability of tenants. Landlord coverage is there to protect the landlord from property damage and liability concerns.

You’ll notice that the coverage limits of a renters policy is usually lower than that of a landlord policy because it only covers the personal property and liability of the tenant. Landlord insurance on the other hand will usually have higher coverage limits because it has to cover the entire rental property and losses from liability for the landlord.

It’s also important to point out for landlords that a tenant’s renters insurance policy will cover personal property, but it won’t cover yours. Your landlord coverage will protect your personal property if it’s necessary for maintaining the property, but otherwise, it will not.



Having a renters insurance policy is the responsibility of the tenant, including procurement and the payment of premiums. Likewise, being sure a property is covered by a landlord policy falls under the responsibility of the property owner.


Cost of Premiums

Renters insurance is a much cheaper coverage than landlord policy. The exposure to risk is higher from a landlord perspective. For this reason, you can expect to pay more if you own the property rather than if you are a tenant.


The Reasons Landlords Should Require Renters Insurance

Landlords requiring renters insurance may find some resistance to the concept. That’s natural, however, there are many reasons that this condition is a great idea for your rental business. Not only does it help you, but your tenants benefit also from this low-cost coverage. Here are some of the top reasons how:

  1. You receive protection in the event your tenant’s personal possessions are damaged. Lawsuits can happen regardless of fault or other policies in place, this is a great way to deter them.
  2. But in the event litigation is unavoidable, a renters policy can help cover legal expenses should your tenants sue.
  3. Additionally, it can help you protect against lawsuits involving bodily injury while people are visiting your rental property.
  4. The right policy can be there to help tenants pay for expensive temporary housing costs after a major loss.
  5. If you allow pets, damages can arise but a renters policy will have such losses covered.
  6. Renters insurance can also cover losses due to vandalism which aren’t always covered by other forms of coverage.
  7. Finally, these policies can help you establish boundaries, set parameters, and gain peace of mind with the understanding of what is covered and who is responsible.

Personal liability renters insurance cost is an extra expense, but it’s affordable coverage that can help everyone stay better protected from loss.


What Renters Insurance Does Not Cover?

There are various potential losses that renters won’t find covered by their coverage. Here are some of the common threats not covered by a standard renters insurance policy:

  • Damage from flooding.
  • Infestations causing a loss including bed bugs or termites.
  • Earth movement including earthquakes, sinkholes, and landslides.

Additional riders and insurance coverages, such as flood insurance, can help tenants enjoy a more complete form of coverage. Speaking with the right insurance agent can help everyone find the right level of protection, personalized toward their risks.


How To Set Up Your Rental Property for Success


Having a plan in place is critical for all landlords. Without one, your real estate business, big or small, will suffer. One of the key components of any real estate endeavor is mitigating risks and landlords in Texas can do so with the right insurance policies in place.

At Freedom Insurance Group, we continue to help landlords find the right policies to protect their homes, but we are here for you every step of the way. Whether that means being a resource, submitting a claim, or providing renters insurance for your tenants, we understand the ins and outs of protecting rental properties and are happy to help.

Our team of licensed agents are experts at helping landlords and renters alike find the right policies for their needs all while pinpointing the lowest price on the market. Since 2005, we’ve helped clients save money on coverage by comparing their policies with top-rated carriers.

Any venture comes with risk and there is a lot that can go wrong when renting a property, but with the right coverage, you’ll have peace of mind every step of the way. Get started by contacting our agents for a quote today!

Contact Us

Freedom Insurance Group
3861 Long Prairie Rd Ste 110
Flower Mound, TX 75028
Phone: (972) 798-3769


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