A Landlord's Guide to Rental Property Insurance in San Marcos

Owning a rental property in a thriving community like San Marcos can be a fantastic investment. Whether you're renting to Texas State students or a family in a quiet neighborhood, you are running a business—and that business needs specialized protection. A standard homeowners policy isn't designed for a property you don't live in, which creates a dangerous coverage gap.

At San Marcos Insurance Agency, we understand the local rental market. Here’s our guide to the essential coverages every landlord needs to protect their investment.

1. Property Damage: Protecting Your Building

The core of any landlord policy is protecting the physical structure of your property. This coverage helps pay for repairs or rebuilding costs after damage from a covered event.

• Fire: This is a standard covered peril in most policies.
• Hail & Windstorms: A hailstorm can destroy a roof, leading to tens of thousands of dollars in damage. Landlord insurance helps cover these repairs.
• Vandalism: If a vacant property is damaged, this coverage can help with the cleanup and repair costs.

It's critical to remember that, like a homeowners policy, standard landlord insurance 

does not cover damage from flooding. You will need a separate flood insurance policy to protect your investment from our "Flash Flood Alley" risks.

2. Liability Protection: Your Financial Shield

This is one of the most important coverages for a landlord. If a tenant or their guest is injured on your property due to a maintenance issue (like a loose railing or uneven sidewalk) and you are found negligent, you could be sued. Landlord liability coverage can help with legal fees and medical bills, preventing a significant out-of-pocket expense.

3. Loss of Rental Income: Preserving Your Cash Flow

What happens if a fire makes your rental unit uninhabitable for several months? You still have a mortgage to pay, but you won't be collecting rent. This is where Loss of Rental Income coverage is essential. It helps replace the rent you would have collected while the property is being repaired, similar to how Additional Living Expenses helps a homeowner or Business Interruption helps a small business.

A Smart Move: Requiring Renters Insurance

Your landlord policy covers your building and your liability, but it does not cover your tenants' personal belongings. By requiring your tenants to carry their own renters insurance policy, you protect them and yourself. Their policy will cover their laptops, furniture, and clothes in a fire, and it provides them with their own personal liability coverage. This can prevent disputes and potential lawsuits down the road.

Protect Your San Marcos Investment

Your rental property is a valuable asset and a source of income. Ensure it’s protected with the right insurance. As your local, independent agency, we can compare policies from multiple carriers to find the best coverage and value for your specific property.

Contact San Marcos Insurance Agency today for a free review of your rental property insurance.