Houston homeowners insurance is a type of insurance for owners of homes that are rented to others. Most insurance companies will not allow customers to purchase a regular homeowners policy on a rental property. That’s because there are different risks and needs for leased property.
In Texas, the state has standardized coverage levels in packages. Homeowners will typically get a TDP 1, TDP 2, or TDP 3 package. (TDP is Texas Homeowners Policy) An Extended Coverage (EC) option is usually added, so a policy could be TDP 1 EC, TDP 2 EC or TDP 3 EC.
A TDP 1 package will include housing and outbuildings, fire, lightning, windstorm, hurricane, hail, explosion, riot or civil disturbance, aircraft or vehicle damage, and smoke. In some cases there may be a special exclusion for windstorms, hurricanes and hail. This is common in coastal areas and you can get a separate windstorm policy if this is the case.
The TDP 2 package will add breaking or exploding for water damage, falling trees, freezing pipes, collapsing buildings, weight of snow, and breaking glass.
The TDP 3 package will add a special form on construction, additional living expenses, replacement cost, and tree and shrub coverage.
Things that are not covered generally include theft, flooding, and mold damage. Some policies will have additional coverage options at an additional cost. Generally, there will be no coverage for tenants’ personal property.
Most landlords will require the tenant to purchase a tenant package for both the tenant’s property and the tenant’s personal liability. This is a very good idea and a high limit on liability coverage is recommended. Ask your insurance agent for details on this.
As a disclaimer, this information may not be current or completely accurate. You can visit the state insurance website at http://www.tdi.state.tx.us for the most up-to-date information. All policies will have restrictions and exclusions. Program details are constantly changing. It is very important to review all the details with an experienced agent before selecting a policy.
Texas residents can visit my Houston homeowners insurance site for more information or call 281-537-2700.