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 from a local agency that understands the market.
Landlord Insurance in Frisco — By the Numbers
Based on industry data and local market trends, here's what Frisco landlords need to know.
Avg. Annual Premium
Typical landlord insurance premium for a Frisco rental property — varies by location, property value, and coverage limits.
Avg. Rental Property Value
Typical Frisco single-family rental value — significant investment requiring proper protection.
Monthly Rent Collected
Average monthly rent for a single-family home in Frisco — loss of rent coverage protects this income stream.
Liability Claim Average
Average liability payout on rental properties — $300K+ limits are recommended for landlords.
What Landlord Insurance Covers
Landlord insurance (DP‑3) 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.
Loss of Rental Income
If a covered loss makes your rental uninhabitable, this covers lost rent while repairs are underway — typically up to 12–24 months. This protects your cash flow 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. Standard limits start at $300,000. Higher limits recommended for multiple properties.
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 and drain clogs.
Ordinance & Law
If a covered loss triggers mandatory building code upgrades during reconstruction, this covers the additional costs — especially important for older rental properties. 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.
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.
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.
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 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.
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 is essential.
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. 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.
The Scenario
A Frisco landlord owns a single‑family rental. A winter freeze causes a pipe to burst, flooding multiple rooms. The property is uninhabitable for four months. 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.
- Out‑of‑Pocket: The landlord pays only the deductible ($2,500).
Key Takeaway: Without landlord insurance, this investor would have faced $45,000 out of pocket. With the right policy, they paid only the deductible.
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.
Landlord Insurance — Frequently Asked Questions
Every question answered in plain view — no accordions, no hidden content.
InsureMyFriscoHome.com
Address: 425 Old Newman Rd, Ste 204, Frisco, TX 75036
Phone: 972‑987‑1628
Hours: Mon–Fri 8:00 AM – 6:00 PM
Conveniently located off Preston Rd near Frisco Square — easy access from the Dallas North Tollway.
Serving All of Collin County
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.
