Reviewed and approved by Samuel Corso, licensed Texas insurance agent.

Published August 14, 2026 · Updated October 1, 2026

Landlord insurance in Texas — what changes when you rent out a house you own

Renting out a house you own changes who lives there, and that can change what your insurance needs to do. This guide walks through Texas Department of Insurance (TDI) tips that bear on it and the questions to raise before a tenant moves in.

The short version. If you rent out a house in Texas, TDI's rental tip sheet, which opens on short-term visitors, says most homeowners insurance won't cover damage to a rental property, or might limit what it pays for. It says landlord insurance is mainly for traditional, long-term leases and may not suit short-term rentals, and suggests asking your agent or insurer whether to add it to a homeowner policy or buy separately.

Here's what we'll cover: what TDI says landlord insurance is for, how coverage splits between you and your tenant, what TDI says about a house that sits vacant for 60 days or more, how claims can figure in a nonrenewal, renting out part of a property, and what to check before the first tenant moves in. What any particular policy does depends on that policy's terms, so the aim here is to help you ask the right questions.

What TDI says landlord insurance is for

Landlord insurance in Texas is coverage TDI suggests considering when you rent out your home. TDI's Renting out your home? Check your insurance says landlord insurance can give you added protection, and the page does not list what a landlord policy covers, so those details come from the policy itself.

The same TDI page says: "Most homeowners insurance won’t cover damage to a rental property, or it might limit what it pays for." That page is framed around renting a home or rooms to short-term visitors, and it does not say whether the sentence applies the same way to a long-term lease, so that is a question for your agent or insurance company.

TDI is specific about which kind of rental it has in mind for a landlord policy: "Landlord insurance is mainly for traditional, long-term leases, and may not be appropriate for short-term rentals." For short-term stays, the page says some home-share websites and apps offer coverage you can buy, and it suggests asking your insurance company if you should add coverage for paying guests. When you describe the rental to an agent, say how long the lease runs and whether you still live on the property.

On how to buy it, TDI's page says: "Ask your agent or insurance company if it makes sense to add it to a homeowner policy or get a separate one." That leaves two possible routes, an addition to the policy you already have or a separate policy, and TDI's page does not prefer one.

How coverage splits between you and your tenant

When you rent out a Texas home, your insurance and your tenant's belongings are separate matters. TDI's Renters insurance: What does it cover and how much does it cost?, a page written for renters, says: "Your landlord’s insurance won’t cover your personal items." The page adds that a renter will need renters insurance to protect belongings from theft or damage from a burst pipe or other cause.

For a landlord, the practical point is that a tenant's furniture, electronics and clothes are the tenant's to insure. The same TDI page tells renters that some landlords might require them to have a renters policy, so asking a tenant to carry one is something you can consider when you write the lease.

On cost, TDI's renters page, last updated 12/10/2025, says: "The average renters policy in Texas costs about $20 a month." That is TDI's statewide average as of that update, and a tenant's own quote may differ.

If your tenant is someone's dependent, one more line on TDI's renters page is relevant. It says that if a renter is a dependent, their parents' homeowners policy may cover their belongings even when they are not living at home, and that this coverage is usually limited to 10% of the personal property coverage in the homeowners policy.

What TDI says about a house vacant for 60 days

TDI lists a house vacant for 60 days or more among the situations in which a company might not renew a home policy in Texas. TDI's Was your home insurance canceled or not renewed? is about home insurance in general, with no separate rule stated for rentals. One item on its list reads: "Your house is vacant for 60 days or more."

TDI says a company might not renew in that situation. The page does not define vacant or say whether a gap between tenants counts, so that depends on your policy's own wording. If you expect the house to be empty for a long stretch, you can ask your agent or insurance company how your policy defines a vacant house.

What TDI says about claims and nonrenewal

Claims on a Texas home policy can figure in a nonrenewal, according to TDI's general home insurance guidance. In its canceled or not renewed page, which is about home insurance in general with no separate rule stated for rentals, the list of situations in which a company might not renew a policy includes: "You file three or more nonweather-related claims in three years." The page says nonweather events can include fires, rodent damage, or broken pipes.

On a rental, you may hear about a problem later than you would in a home you live in. Regular maintenance visits and a tenant who knows how to reach you are steps you can take to learn about problems early.

Renting out part of the property

Renting out part of a Texas property, such as a pool or a storage area, raises its own insurance question. The TDI rental tip sheet says: "If you want to rent out your pool or storage area, but not the house, you probably need specific coverage." The page's advice is to work with your insurance company to find the right amount of coverage for renting out your pool or storage shed.

TDI's page also mentions Texans who rent out rooms in their homes to short-term visitors, alongside those who rent out the whole home. If paying guests or renters use any part of a property you live on, it is worth describing that use to your agent or insurance company and asking what the policy does with it.

If a company turns you down

If an insurance company declines to write a policy on a Texas home, TDI describes a written statement of the reason, for decisions made after Jan. 1, 2026. The canceled or not renewed page, which covers home insurance in general with no separate rule stated for rentals, says: "If you were declined a policy or your policy was canceled or not renewed after Jan. 1, 2026, your company must give you a written statement telling you why they declined, canceled, or nonrenewed your policy."

The same page says that, for a nonrenewal, your company must give you the reason if you ask. For a landlord, the written reason is useful information to have in hand when you talk to an agent or insurance company about the property.

What to do before the tenant moves in

Before a tenant moves into a Texas house you own, these are steps you can take. The checklist is Credify's own, and the TDI pages are cited only for the facts inside each step.

• Talk to your agent or insurance company about the rental. Talking to your agent or insurance company is the first heading on TDI's rental tip sheet, which is framed around short-term visitors.
• Describe the arrangement. Say whether it is a long-term lease or short-term stays, because the same page says landlord insurance is mainly for traditional, long-term leases and may not be appropriate for short-term rentals, and suggests asking whether it makes sense to add it to a homeowner policy or get a separate one.
• Decide whether to ask tenants for a renters policy. The renters insurance page tells renters that some landlords might require one.
• Ask how the policy treats a vacant house. The canceled or not renewed page lists a house vacant for 60 days or more among the situations in which a company might not renew a home policy, and it does not define vacant.
• Ask what liability coverage applies. The rental tip sheet says, about renting to short-term visitors, that homeowners insurance probably won't cover the costs if someone else gets hurt or causes damage on your property.

Key facts

• TDI's rental tip sheet, which is framed around short-term visitors, warns that damage to a rental property is something most homeowners insurance won't cover, or may restrict what it pays for. The page does not say whether that applies the same way to a long-term lease.
• Landlord insurance can give added protection, is mainly for traditional, long-term leases, and may not be appropriate for short-term rentals, according to the same TDI page, which suggests asking your agent or insurance company if it makes sense to add it to a homeowner policy or get a separate one.
• A landlord's insurance won't cover a renter's personal items, and some landlords might require a renters policy, per TDI's renters insurance page, which is written for renters.
• The average renters policy in Texas costs about $20 a month, according to TDI's renters page, last updated 12/10/2025.
• TDI's canceled or not renewed page, a page about home insurance in general, says a company might not renew a policy if the house is vacant for 60 days or more, or if the policyholder files three or more nonweather-related claims in three years. The page does not define vacant.
• For a decline, cancellation or nonrenewal after Jan. 1, 2026, the same TDI page says the company must explain the reason in a written statement.

Sources: Texas Department of Insurance, Renting out your home? Check your insurance, Renters insurance: What does it cover and how much does it cost? and Was your home insurance canceled or not renewed?. This page is general information, not legal advice.

Take the next step

If you are about to rent out a house, or you have been renting one out on a policy written when you lived there, the first step is a conversation with your agent or insurance company about how the house is used.

For background on home insurance generally, how to choose home insurance in Texas covers sizing coverage, independent agency vs. direct covers the two ways to shop, and what to do about a non-renewal explains the nonrenewal process.

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