In Texas there are two primary types of policies which cover dwellings. The most common is a Homeowners Policy, which is intended to cover “Owner Occupied” dwellings. The other, is simply called a “Dwelling Policy” or a “Fire Policy”. The Dwelling Policy is the most common form of policy for Rental or Non-Owner Occupied dwellings. Be careful to note there are specific coverages and exclusions in the Dwelling Policy. Specifically a Homeowners Policy will cover Personal Liability, Loss of Use, and Theft. A Dwelling Policy does not. Loss of Rents and Landlord’s Liability Insurance is available by endorsement. Personal Liability may be added by endorsement to the Landlord’s own Homeowners Insurance Policy. Some companies will allow up to ten rental dwellings to be added to the Personal Liability Coverage, and the coverage is very affordable.
There are three forms of Dwelling Policies which go by the acronyms: TDP 1, TDP 2, and TDP 3.
The TDP 1 is the most basic, and the least expensive. It covers:
- Dwelling
- Contents (If Needed)
- Adjacent Structures (If Requested)
The Perils insured against are:
- Fire & Lightning
- Smoke
- Windstorm, Hurricane & Hail
- Explosion
- Aircraft & Vehicles
- Vandalism & Malicious Mischief
- Riots & Civil Commotion
The TDP 2 covers everything the TDP 1 covers, plus:
- Collapse of the building
- Freezing
- Falling Objects
The TDP 3 is broader and usually covers Replacement Cost, versus Actual Cash Value.
Additionally, Extended Coverages can be added to cover debris removal, and consequential loss.
Optional Coverages are:
- Fair Rental Value (Loss of Rents)
- Premises Liability
- Accidental discharge of Water or Steam
- Residence Glass
You are required by your Texas Association of Realtors Management Agreement to list the Property Management Company as an Additional Insured. This endorsement is provided at no cost by most of our carriers.
Call for quotes:
Latta Insurance Agency
6450 Louetta, Suite 120
Spring, TX 77379
Phone: 281-444-2226
Toll Free: 1-866-819-3313
Fax: 281-444-6281
Website: http://www.lattainsurance.com/
e-mail: rlatta@lattainsurance.com