What happens if my landlord can't get homeowners insurance?

My husband and I currently lease a home and an insurance agent came out to take pictures inside and out to see if they could provide coverage for the homeowners. They said they wouldn't be able to cover the home based on the condition of the roof and wood damage. We found out the homeowners don't have any coverage at all. Is a landlord in Texas even required to carry insurance on a property they're leasing out? And should we as renters be worried about this kind of situation?

Your landlord isn't necessarily required to carry insurance on the property. In many cases, a mortgage lender will require it, but if there's no mortgage or lender requirement in place, some owners simply don't carry it. As a renter, you'll need renters insurance to protect your own belongings.

Your landlord's home insurance covers the structure of the home, not your personal things or your liability. So in one sense, a gap in their coverage doesn't directly affect what your own renters insurance protects. But the bigger concern here is what happens if something goes wrong with the property itself.

If the roof fails, the wood damage worsens, or there's a major structural issue that makes the home unlivable, your landlord may not have the financial resources to repair it quickly without an insurance payout behind them. That could leave you and your husband displaced, potentially with little notice. Renters insurance typically includes additional living expenses coverage, which can help cover temporary housing if your rental becomes uninhabitable due to a covered event, but it won't cover every scenario.

The fact that an insurer declined coverage based on roof and wood damage is a signal worth taking seriously (even if it isn't up to you to make decisions about the property). Those are the kinds of conditions that can lead to real structural problems, and as renters you have a right to a habitable living space under Texas law. If you have serious concerns about the property's condition, you might want to consult an attorney who specializes in tenant rights, or reach out to the Texas Department of Insurance with any specific coverage-related questions.

If you don't already have renters insurance, now is the time to get it. It won't protect you from the landlord's structural problems, but it will protect your belongings and give you some financial cushion if you need to find temporary housing. It might be worth having a direct conversation with your landlord about what their plan is for the repairs, too.