Texas Property and Casualty License Practice Exam 2025 – All-in-One Guide to Exam Success!

A landlord policy is designed to protect property owners who rent out residential properties. It usually includes coverage against liability, which can protect the owner in case a tenant or visitor suffers an injury on the property. Additionally, it covers loss of rental income, which ensures that the landlord can recover lost income if the property becomes uninhabitable due to a covered loss, such as fire or severe damage.

This comprehensive approach distinguishes landlord policies from coverage types focused solely on personal property or tenant-related issues. While there are policies that might only cover personal property or focus on tenant concerns, these do not encompass the full range of protections a landlord policy provides. It also specifically addresses risks relevant to rented properties rather than covering non-residential properties, which are typically insured under different types of commercial insurance.

Thus, the inclusion of liability protection and loss of rental income is a defining feature of a landlord policy, making it essential for landlords to manage their risks effectively.