Rental Property Insurance Built for Landlords.
Protect your investment property, rental income, and liability. Landlord insurance is different from homeowners — get the right coverage for your Frisco rental.
Landlord Insurance in Frisco — By the Numbers
Based on industry data and local market trends, here's what Frisco landlords need to know about protecting their rental properties.
What Landlord Insurance Covers
Landlord insurance (DP‑3 or similar commercial property policies) is designed specifically for rental properties. Here's what it covers — and why it's different from standard homeowners insurance.
Dwelling & Other Structures
Covers the physical structure of your rental property — walls, roof, foundation, and permanently attached systems. Also covers detached structures like fences, garages, and sheds. In North Texas, where hail and wind are common, this is essential. Replacement cost coverage is strongly recommended to avoid depreciation deductions.
Loss of Rental Income
If a covered loss (fire, storm, water damage) makes your rental uninhabitable, this coverage reimburses you for lost rent while repairs are underway — typically up to 12–24 months. This is one of the most valuable coverages for landlords, as it protects your cash flow during a time when you're still responsible for mortgage payments and property taxes.
Landlord Liability
Protects you if you're sued for bodily injury or property damage occurring on your rental property — tenant injuries, slip‑and‑fall accidents, or damage caused by a tenant that affects others. Standard limits start at $300,000. We recommend higher limits, particularly if you own multiple properties or have significant personal assets.
Water Backup & Sewer
Standard landlord policies may exclude water backup from sewers or drains — a common risk in rental properties. We recommend adding this endorsement to protect against costly damage from sewer backups, sump pump failures, and drain clogs. Learn more about drain & sewer backup protection.
Ordinance & Law Coverage
If a covered loss triggers mandatory building code upgrades during reconstruction, this endorsement covers the additional costs — especially important for older rental properties in Frisco. Average code upgrade costs in North Texas range from $10,000 to $25,000.
Umbrella Liability
Adds $1M+ in excess liability coverage above your primary policy — protecting your personal assets from catastrophic lawsuits. Highly recommended for landlords with multiple properties or significant net worth. Learn more about umbrella insurance.
Why Standard Homeowners Insurance Won't Cover Your Rental
Many landlords assume their standard homeowners policy covers their rental property. This is a costly misunderstanding. Here's why you need a specialized landlord policy.
Homeowners Policy (HO‑3)
- Designed for owner‑occupied properties
- Limited or no loss of rent coverage
- May exclude tenant‑related liability
- Requires you to live in the home
- Lower liability limits typically
Landlord Policy (DP‑3)
- Designed specifically for rental properties
- Loss of rent coverage included
- Higher liability limits for landlord risks
- Coverage for tenant‑caused damage
- Landlord liability endorsements available
Critical: If your insurance carrier discovers you're renting out your property without a landlord policy, they may deny a claim, cancel your policy, or both. The premium difference is modest — but the protection difference is massive. Don't risk your investment.
Unique Landlord Risks — Frisco, TX
Tenant‑Caused Damage
Frisco's rental market attracts a diverse tenant base — families, young professionals, and corporate relocations. While most tenants are responsible, accidents happen. Water damage from a tenant's washing machine overflow, kitchen fires, or careless smoking can cause significant damage. Landlord insurance covers the structure, but we also recommend requiring tenants to carry renters insurance for their personal belongings.
North Texas Weather
Frisco's severe weather — hail, wind, tornadoes, and winter freezes — poses a significant risk to rental properties. A single hailstorm can cause $15,000–$30,000 in roof damage. Winter freezes can burst pipes, causing extensive water damage. Landlord insurance with extended replacement cost and ordinance & law coverage is essential to protect your investment from these events.
Landlord Liability
If a tenant or guest is injured on your rental property — a slip on icy steps, a fall from a deck, a dog bite — you could be held liable. Landlord liability coverage protects you from these lawsuits. We recommend at least $300,000 in liability coverage, and an umbrella policy for additional protection if you own multiple properties.
Illustrative Claim Scenario — How Landlord Insurance Works
The following is a hypothetical example designed to illustrate how a landlord policy responds to a common loss. Names and details are fictional.
The Scenario
A Frisco landlord owns a single‑family rental in Phillips Creek Ranch. A winter freeze causes a pipe to burst in the attic, flooding the living room, kitchen, and two bedrooms. The property is uninhabitable for four months. Total repair cost: $35,000. Lost rent: $2,500/month for 4 months = $10,000.
How the Policy Responds
- Dwelling: Pays $35,000 to repair structural damage and water remediation.
- Loss of Rent: Pays $10,000 to cover lost income during the four‑month rebuild.
- Liability: Not triggered in this scenario.
- Out‑of‑Pocket: The landlord pays only the deductible ($2,500).
Key Takeaway: Without landlord insurance, this investor would have faced $35,000 in repairs and $10,000 in lost rent — a total of $45,000 out of pocket. With the right policy, they paid only the deductible and maintained their cash flow.
Optional Endorsements — Customize Your Landlord Policy
Every rental property is unique. These endorsements let you tailor your policy to your specific situation.
Extended Replacement Cost
Adds 20–50% above your dwelling limit to cover post‑disaster cost spikes — essential in North Texas where demand surge can inflate rebuild costs.
Ordinance & Law Coverage
Covers mandatory building code upgrades during reconstruction — average cost in North Texas is $10,000–$25,000.
Water Backup & Sump Pump
Covers damage from sewer backups and drain clogs — a $10,000–$30,000 risk often excluded from standard policies. Learn more about drain & sewer backup protection.
Landlord Insurance — Frequently Asked Questions
Every question answered in plain view — no accordions, no hidden content.
Prefer to Meet Face‑to‑Face?
While we handle everything online or over the phone with ease, we also welcome you to our Frisco office for a personal consultation. It's entirely up to you.
Our office is conveniently located at 425 Old Newman Rd, Ste 204 and open for appointments. Walk‑ins are always welcome — we're here to review your coverage, identify gaps, and build a strategy that fits your life.
Why Frisco Landlords Choose Us
We live and work in Frisco. We know the rental market, the neighborhoods, and the unique risks that come with being a landlord in Collin County. From the high‑demand rentals near The Star and Toyota Stadium to the family‑friendly communities in Stonebriar, Phillips Creek Ranch, and Newman Village — we understand what it takes to protect your investment.
We compare options from 10+ top‑rated carriers to find the coverage that fits your property and budget. We also review your lease agreements, screen tenants, and recommend appropriate liability limits. But more importantly, we stand by you when it matters most — with claims advocacy that ensures you're treated fairly and promptly.
Protect Your Rental Investment —
From Home or In Person
Get the right coverage for your rental property. Dwelling protection, loss of rent, liability — we've got you covered.
We make it easy — from your couch or our office.
