Texas landlords with 10–30 single-family rentals: how are you insuring your portfolio
Member since 2025 · 1 post · 0 votes
Texas landlords with 10–30 single-family rentals: how are you insuring your portfolio
6 Replies
- 1wG. Brian DavisPro MemberInvestor · Hatboro, PA · Member since 2016 · 2k+ posts · 858 votes
With 18 rentals, I’d definitely start looking at the insurance as a portfolio rather than just property by property. I’d pay really close attention to the wind/hail deductibles and roof coverage. A cheap policy isn’t much of a bargain if you find out after a claim that you have a huge deductible or limited coverage. I’d compare the portfolio policy with separate policies, but I’d probably put more weight on the broker and how they handle claims than just who gives you the lowest premium. When something goes wrong, that relationship becomes pretty important.
- 6dDivin KanyamaBusiness MemberAccountant · Seattle, WA · Member since 2025 · 323 posts · 119 votes
@Brad Brown At 18 properties, it makes sense to compare a commercial portfolio policy with separate dwelling-fire policies rather than trying to force the portfolio into a residential program that is no longer a good fit. The best structure will depend on property locations, values, loss history, entity setup, and whether the insurer can schedule each location with appropriate limits. A portfolio policy may simplify renewals and administration, but separate policies can sometimes prevent one property’s loss or underwriting issue from affecting the entire book.
Any short-term rental should be disclosed and may be better separated because the occupancy and liability profile differs from long-term housing. When comparing quotes, look beyond premium: review whether wind and hail deductibles are flat or percentage-based, whether roofs are settled at replacement cost or actual cash value, roof-age restrictions, water exclusions, vacancy terms, ordinance or law coverage, loss-of-rents limits, and umbrella compatibility. The protected-series structure should also be reviewed with the broker and counsel so every named insured and property interest is correctly listed. A strong broker should provide a side-by-side coverage comparison, explain carrier appetite and claims handling, and start renewal discussions well before expiration. Speaking with a Texas independent broker who regularly handles investor portfolios—and checking references from clients who have actually filed claims—will likely be more useful than choosing based on quoted premium alone.
- 6dAshish AcharyaBusiness MemberCPA, CFP®, PFS · FL · Member since 2017 · 5k+ posts · 3k+ votes
Brad, with 18 rentals I think you’re at the point where insurance strategy becomes a portfolio-level decision rather than a property-by-property decision.
I’d look at the structure from a few angles: how much coverage each property needs individually, whether a portfolio policy makes sense, how deductibles affect your reserves, and whether the policy structure matches how your LLCs are organized.
For Texas especially, I’d pay close attention to wind/hail, roof coverage, water damage exclusions, and how claims are handled. The cheapest premium is not always the best fit if a major event creates a large unexpected out-of-pocket expense.
I'd also make sure the insurance strategy works together with your entity structure. The LLC helps with organization and liability separation, but the insurance coverage, leases, documentation, and operations all need to work together.
At 18 properties, I’d probably have an annual review process where you revisit coverage limits, replacement costs, deductibles, umbrella coverage, and whether the current structure still fits as the portfolio grows.
Feel free to DM me, I’d be happy to share a few resources on the tax and portfolio-planning side that may be helpful as you continue scaling.
INVESTOR FRIENDLY CPA®5241 Reviews - 6dOwen RosenBusiness MemberProfessional · Clinton Township, MI · Member since 2015 · 678 posts · 259 votes
A portfolio program would be ideal for 18 properties but pricing/coverage restrictions can be prohibitive depending on the location of the properties.
A good broker should be able to piece this together for you (one way or another) either with one provider or a few where the number of properties isn't an issue.
If you're trying to work with one captive insurer such as State Farm, they'll be limited in how they can help.
Royal Oath Insurance Group4.9203 Reviews - Rental Property Investor · Joliet, IL · Member since 2013 · 102 posts · 48 votes5d
Hi Brad - I went through a full insurance assessment on my own rental portfolio earlier this year. I have 10 long-term rentals, primarily single-family homes plus one duplex, and my two main objectives were fairly simple: maintain strong protection while reducing insurance cost.
Based on that process, I would strongly recommend pricing both a commercial/portfolio policy and individual dwelling policies rather than assuming the portfolio structure will automatically be better once you reach a certain number of properties.
In my case, I found that comparable protection could actually cost more when structured as a commercial policy than when the properties were written separately as dwelling policies. A lot depends on the insurance company, its underwriting appetite, and how it structures rental-property coverage. There doesn't seem to be one structure that is universally best.
I would also spend time understanding wind/hail and roof coverage. A declarations page may show that wind and hail are covered, but that doesn't necessarily tell you what a claim will actually pay. For example, an older roof may be covered on an actual-cash-value basis rather than replacement cost. After depreciation and the wind/hail deductible are applied, the insurance payment could be only a fraction of the actual repair or replacement cost. That is one area where I found a knowledgeable independent agent especially valuable. I wanted someone who could explain not just whether something was "covered," but how a claim would actually be settled.
If I were evaluating an 18-property portfolio, I would work with at least one knowledgeable independent agent and get quotes from two or three different insurance companies.
I would be happy to share the process I use to assess my current insurance coverage and compare quotes from three different companies.
- 5dDiana KhanPro MemberAttorney · 10451 Mill Run Cir #755 Owings Mills, MD 21117 · Member since 2024 · 427 posts · 165 votes
Quote from @Brad Brown:
We own 18 rentals, primarily long-term homes in Central Texas, through an LLC with protected series. Residential insurers are pushing back on the number of properties. I'd appreciate hearing whether you use separate dwelling policies or a commercial portfolio policy, whether you separated any short-term rental, and which broker has handled claims and renewals well. I’m especially interested in wind/hail deductibles, fire and roof coverage. Happy to compare notes privately.
@Brad Brown, with 18 rentals, I would definitely compare both options with a broker who regularly works with rental portfolios. From my side, I would also make sure the insurance setup matches how each property is actually owned, especially since you are using an LLC with protected series. As the portfolio grows, I think that becomes just as important as comparing premiums and deductibles.
I’ve worked with real estate investors who added properties and changed their ownership structure over time, but their insurance, leases, and other documents did not always keep up with those changes. That is usually when I like to review everything together and make sure the legal structure still matches what the investor is actually doing with each property.
I like this topic because insurance and liability protection are closely connected to the real estate and asset protection work I do with investors. With a portfolio your size, there are a lot of moving pieces that need to work together. Happy to stay connected, @Brad Brown, and I’d be interested to hear which direction you end up taking.
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