- Free quotes for rental properties
- Accidental landlords welcome
Texas Landlord Insurance
The day you rent it out, your homeowners policy stops applying.
Landlord insurance (also called a dwelling fire or DP policy) covers a property you own but rent to someone else. It replaces homeowners, adds loss of rental income coverage, and adjusts the liability to fit a landlord relationship. If you’re an accidental landlord (moved out but kept the house), this is the policy you need.
- DP-1 and DP-3 forms explained honestly
- Loss of rental income if the property is unrentable
- Landlord liability, separate from tenants' own coverage
- Single-family, multi-family, and small portfolios
🏘️ Get your landlord quote
Free, no obligation. DP-1 and DP-3 options compared.
Trusted by Texas landlords since 1983
Landlord placements since 1983
The right policy structure explained
Coverage if the property is unrentable
Same person for renewals & claims
The single most important thing
Homeowners insurance doesn't cover a property you rent to someone else.
The day a home stops being your primary residence and starts being a rental, your homeowners policy quietly stops applying to major categories of loss. This catches thousands of accidental landlords (people who kept a home when they moved) every year. Here’s what changes.
- Before: owner-occupied
Homeowners Insurance (HO-3)
The right policy when you live in the home yourself.
- You are the primary occupant of the home
- Your personal belongings are inside the home
- Your family members and guests are the ones on the property
- Liability is written for a homeowner, not a landlord
- Personal property coverage no longer fits, tenants have their own belongings
- Liability may not respond to tenant-related claims
- Some claims may be denied due to material misrepresentation of occupancy
- Carrier may non-renew once occupancy status is discovered
- After: rented to others
Landlord Insurance (DP-3 or DP-1)
The right policy when you own the property but someone else lives there.
- The physical structure of the rental property
- Other structures on the rental property (detached garage, fences)
- Landlord's liability for the building and premises
- Loss of rental income if the property becomes unrentable
- Owner-provided appliances and property (fridge, stove, lawn equipment)
- Tenants' personal belongings (their renters insurance)
- Tenants' personal liability for their own actions
- Tenants' temporary housing if displaced
The accidental landlord trap: if you moved out of a Texas home and started renting it without switching to landlord coverage, you may be uninsured for major loss categories right now, and a future claim could be denied for material misrepresentation. This is one of the most common (and expensive) coverage mistakes we see. Fixing it is straightforward, we just need to switch you to the right policy form.
The two dominant landlord policy forms
DP-1 or DP-3. Same idea, meaningfully different results.
Landlord policies come in two main forms. DP-3 is the modern, broader-coverage form most landlords should carry. DP-1 is an older, basic form still used for some higher-risk or specialty properties. Knowing which form you have (and why) matters.
- Basic form
DP-1 (Basic Named Perils)
The older, more limited landlord form. Covers only a narrow list of named perils, and generally settles losses on an actual cash value (ACV, depreciated) basis rather than replacement cost.
- Named perils only (fire, lightning, wind, hail, explosion, riot, aircraft, vehicles, smoke, and a few others)
- Vandalism and theft often optional or excluded
- Settles on actual cash value (ACV, depreciated) unless upgraded
- Used for older, higher-risk, or vacant properties when DP-3 isn't available
- Typically less expensive but significantly less protective
- Broadest form
DP-3 (Special Form)
The modern, broader-coverage landlord form. Covers all causes of loss to the dwelling except those specifically excluded, and settles losses on a replacement cost basis. This is what most Texas landlords should carry.
- All-risk (open perils) coverage on the dwelling
- Includes vandalism, sudden water damage, and other common losses
- Replacement cost settlement on the dwelling (no depreciation)
- Loss of rental income typically included or easily added
- Higher premium than DP-1, but far broader protection
What landlord insurance covers
The core coverages inside a standard landlord policy.
Landlord insurance is structured differently than homeowners. Understanding the parts helps you compare quotes on more than just price.
Dwelling
The physical structure of the rental: walls, roof, foundation, attached garage, permanent fixtures. Settled at replacement cost under DP-3.
Other Structures
Detached structures on the property: detached garage, shed, fence, driveway. Typically a percentage of the dwelling limit.
Loss of Rental Income
If a covered loss makes the property unrentable, the policy pays the fair rental value while repairs happen. Often overlooked but frequently the most valuable coverage.
Landlord Liability
If a tenant, guest, or visitor is injured on the property and holds you responsible as the owner, this coverage responds to legal defense and settlement costs.
Owner Property
Appliances, lawn equipment, tools, and other landlord-owned property kept on the premises. Not tenant property, and typically a smaller limit than homeowners.
Vandalism & Theft
Included by default on DP-3, optional on DP-1. Given the reality of vacancies between tenants, this coverage matters more than most landlords assume.
Why work with Aimbest
Texas rental properties come in every shape. We know the forms.
Whether you have one house, a small portfolio, a duplex you inherited, or a property you converted to short-term rental, the right policy structure matters. As an independent broker, we compare multiple landlord carriers and walk you through DP-1 vs. DP-3, vacancy provisions, and short-term rental rules.
Real quotes from multiple Texas landlord carriers on the form that fits.
Fast switch from homeowners to landlord coverage without gaps.
Renewals, tenant transitions, and claims all handled by the same person.
"We kept our old house when we moved and had no idea our homeowners policy no longer applied. Aimbest switched us to a proper DP-3 policy the same week and walked through what loss of rental income actually covered."
How it works
From quote request to bound policy, four steps.
Share your rental property details and current situation. A Texas advisor reaches out.
Multiple landlord carriers compared on the right form (DP-1 or DP-3) for your property.
Side-by-side comparison of coverage, deductibles, loss-of-rents limits, and premium.
Choose your policy. Same advisor handles renewals, tenant changes, and any future claims.
Common questions
Landlord insurance, answered.
I only rent my house out occasionally. Do I still need landlord insurance?
If the property is not your primary residence, your homeowners policy is very likely the wrong policy for it, even for part-time rental use. Short-term rentals (Airbnb, VRBO) create additional complications that most standard homeowners policies exclude entirely. If you’re renting a property, or planning to rent it soon, we should discuss whether landlord coverage, a short-term rental endorsement, or something else fits your specific arrangement.
What's the difference between DP-1 and DP-3 in plain language?
DP-1 is the older, basic form. It only covers a short list of named perils, often excludes vandalism and theft unless added, and settles losses on an actual cash value basis (accounting for depreciation). DP-3 is the modern, broader form. It covers all causes of loss except those specifically excluded, includes vandalism and theft by default, and settles the dwelling at replacement cost (no depreciation). Most Texas landlords should carry DP-3 unless the property specifically doesn’t qualify. The premium difference is usually meaningful but rarely as large as the coverage difference.
My tenant said they have renters insurance. Am I covered?
Only for the things renters insurance covers, which is the tenant’s own belongings, the tenant’s personal liability, and the tenant’s temporary housing costs. Your building, your loss of rental income, and your own liability as the property owner are still your responsibility. Landlord insurance and tenant renters insurance are separate policies that cover different sides of the rental relationship. Some Texas landlords require tenants to carry renters insurance as a lease condition, and that’s smart, but it doesn’t replace the landlord’s own policy.
What happens between tenants when the property is vacant?
Most landlord policies have a vacancy provision that limits or excludes certain coverages once the property has been vacant for a set period (often 30 or 60 days). If you have a long turnover, are renovating between tenants, or the property will sit empty for months, we may need to add vacancy coverage or transition to a vacant property policy to keep protection continuous. Tell us about vacancy plans ahead of time so we can structure coverage correctly.
What about short-term rentals like Airbnb?
Short-term rentals sit in an awkward middle ground. A standard landlord policy typically assumes traditional long-term tenants and may exclude or limit short-term rental activity. Airbnb offers its own supplemental protection for hosts, but it has meaningful gaps and is not a substitute for underlying insurance. If your property is used for short-term rentals, we work with specialty carriers that specifically write short-term rental policies designed for this use case.
Does landlord insurance cover flood damage?
No. Just like homeowners insurance, standard landlord policies exclude flood damage from rising water outside the property. Flood coverage on a rental property is handled through a separate policy, available through NFIP or the private flood market. Given how much of Texas has real flood risk (in and out of designated flood zones), this is a coverage worth thinking about, especially since a flood loss on a rental typically means lost rental income on top of physical damage.
Related coverage
What pairs with landlord insurance.
🏚️
💍
🏠
🔑
🌊
🏘️
🏬
🏔️
🚚
Get your Texas landlord quote today.
Free, no obligation. We shop multiple carriers and explain the DP-1 vs. DP-3 decision in plain language.