Claims and coverage
Does Texas landlord insurance cover tenant damage?
AIV Insurance LLC · Updated · How we write these
Short answer. Sometimes. Many landlord policies pay for sudden damage and vandalism, including by a tenant, less any deductible. But vandalism isn't covered once the house has been empty longer than the policy allows, some policies exclude or limit damage by tenants, and wear and tear is not covered. Texas law also bars keeping a deposit for normal wear and tear.
Which of those applies to your rental depends on three things: what kind of damage it is, what your policy's forms say, and what the lease and Texas deposit law allow you to recover from the tenant. This guide takes them in that order.
Three kinds of damage, treated three ways
| Kind of damage | Examples | Landlord policy | Security deposit |
|---|---|---|---|
| Normal wear and tear | Worn carpet in walkways, faded paint, cracked tile grout, an old water heater that wears out | Not covered: maintenance. For a water heater, that means the heater itself; sudden water damage it causes may be covered | May not be kept for it |
| Sudden accidental damage | A kitchen fire, an overflowing bathtub, a broken window | Often covered, subject to any deductible and the policy's terms | May be kept for damage the tenant is legally liable for |
| Deliberate damage (vandalism or malicious mischief) | Holes punched in walls, smashed cabinets, graffiti | Covered by many policies, with the limits below | May be kept for damage the tenant is legally liable for |
Texas law draws the first line. Normal wear and tear "means deterioration that results from the intended use of a dwelling," and it "does not include deterioration that results from negligence, carelessness, accident, or abuse of the premises, equipment, or chattels [movable belongings] by the tenant," their household or their guests (Tex. Prop. Code §92.001(4)). The insurance side is similar: the Texas Department of Insurance's (TDI) standard dwelling form excludes loss caused by "wear and tear, deterioration or any quality in property that causes it to damage or destroy itself" (TDP-3, General Exclusions).
A slow problem the tenant ignored, such as a small leak left for months, sits in between, and the forms differ. Some exclude water damage from "constant or repeated seepage or leakage" over weeks, months or years. TDI's standard form (TDP-3) does not, as TDI noted in a 2003 order (TDI Order No. 03-0110), though its wear and tear and rot exclusions can still apply. TDI also lists "a continuous water leak" among the things most policies don't cover (TDI home insurance guide). More in Water damage and flood on a Texas rental.
What the standard Texas forms say
TDI has its own standard Texas Dwelling Policy forms (TDP-1, TDP-2, TDP-3; last revised in 2002). Insurers may still use them, but many now use their own filed forms (Ins. Code §2301.052), and surplus-lines insurers use theirs; we quote the TDI forms because they are public.
On the special form (TDP-3), the house is insured "against all risks of physical loss … unless the loss is excluded." Vandalism and malicious mischief is also a named peril (a cause of loss the policy names) for your personal property there. Its exclusions do not single out damage by a tenant. Four things still matter on a rental:
- Wear and tear is excluded, as above.
- Pets. The form does not cover loss "caused by animals or birds owned or kept by an insured or occupant of the described location." A tenant's dog chewing doors or a cat ruining carpet falls there.
- Theft. The form does not cover theft of property that "is not an integral part of any structure covered under Coverage A (Dwelling)." It also counts refrigerators and stoves you own as a landlord as part of the dwelling. So whether a refrigerator a departing tenant takes is covered is a question for the insurance company; ask before you assume either way.
- Vacancy. "If an insured building is vacant for 60 consecutive days immediately before a loss, we will not be liable for a loss by the perils of fire and lightning or vandalism or malicious mischief" (TDP-3, Condition 17).
On the basic form (TDP-1), vandalism is not automatic. The form adds it "when a premium for vandalism and malicious mischief is shown in the declarations," and even then the peril "does not include" loss to glass that is part of the building (other than glass building blocks), or "loss by pilferage, theft, burglary or larceny, but we will be liable for damage to the building covered caused by burglars" (TDP-1, Perils Insured Against). If your rental is on a basic form, look for that premium line on your declarations page. How to find it: How to read a Texas rental declarations page.
Policies that exclude or limit tenant damage
Many landlord policies are not on the TDI forms, and their wording about tenants varies. Some insurers' own forms exclude or limit vandalism or malicious damage by the tenant or the tenant's guests, cap it at a lower amount, or offer it only as an endorsement (a form attached to the policy that adds or changes coverage). A public Texas example is the Texas FAIR Plan's dwelling policy. It adds vandalism only when a premium for it is shown, and even then excludes "loss caused by you, a roomer, tenant, or any other person regularly staying at the described location … for a period in excess of thirty consecutive days" (TFPA Dwelling Policy, edition October 28, 2024).
Other forms also set shorter vacancy limits. In a 2003 order, TDI compared one insurer's dwelling form, adopted by the commissioner, with the TDP-3 and noted that the other form "excepts loss from vandalism or malicious mischief if the dwelling is vacant for more than 30 days immediately before a loss" (TDI Order No. 03-0110).
What to do: open the forms list at the end of your declarations page and look for titles that mention vandalism, malicious mischief, tenants or vacancy. If the wording is unclear, ask your agent before a tenant moves out, not after. When a tenant leaves a house damaged and empty, the vacancy clock matters too; see Vacant rental property insurance in Texas.
Your tenant's renters policy
Your policy is about your building and your things. Your tenant's renters policy is about theirs: TDI tells renters that their "landlord's insurance won't cover your personal items," and describes renters liability as protecting the tenant "if someone is injured in your home" (TDI, Renters insurance).
Whether a tenant's renters policy pays for damage the tenant causes to your rental depends on that policy. Some pay for accidental damage such as a fire the tenant started; many exclude damage to property the tenant rents, and deliberate damage by the tenant is generally not covered by the tenant's own policy. Requiring renters insurance in the lease is the usual way to make sure the tenant has something of their own. See Landlord vs renters insurance in Texas.
Security deposits: the Texas rules
Texas Property Code Chapter 92, Subchapter C, applies to "all residential leases." In short (Tex. Prop. Code §§92.102–92.113):
- What you may deduct. "Damages and charges for which the tenant is legally liable under the lease or as a result of breaching the lease" (§92.104(a)). You "may not retain any portion of a security deposit to cover normal wear and tear" (§92.104(b)).
- When. Refund the deposit "on or before the 30th day after the date the tenant surrenders the premises" (§92.103), with "a written description and itemized list of all deductions" (§92.104(c)). You do not have to act until the tenant gives you a written forwarding address (§92.107). These notices may go by email if you and the tenant have emailed each other before (§92.113).
- Getting it wrong can cost more than the deposit (§92.109).
Some leases replace the deposit with a recurring fee that may be used to buy insurance for damage the tenant owes; that is a different product from your landlord policy, with its own rules (§92.111).
These are legal rules, not insurance ones. We don't give legal advice; for a disputed deposit, ask an attorney.
Claim or deposit?
| Situation | Usual route | Why |
|---|---|---|
| Wear and tear | Neither | Not a covered loss, and not deductible from the deposit |
| Damage smaller than your deductible | Deposit and the tenant | A claim would pay nothing |
| Pet damage | Deposit and the tenant | The TDI form excludes damage by an occupant's animals; other forms word this differently |
| A departing tenant takes appliances you provided | Police report, deposit and the tenant; ask the insurance company about a claim | The TDI form excludes theft of property that isn't part of the structure, and whether a landlord's refrigerator or stove counts is the insurance company's call; forms that add theft back vary |
| Large sudden or deliberate damage, well beyond the deposit | Consider a claim, and use the deposit for the rest | This is what the policy is for, subject to its terms and any vacancy limit |
Three things to weigh before you file:
- The deductible. Where the declarations page shows no separate deductible for vandalism, the all-other-perils deductible normally applies. On the TDI form, no deductible applies to fire or lightning.
- Your claims history. TDI's homeowners guide says "your premiums might be higher if you've had claims in the past," and that most companies check the claims-history (CLUE) report, which covers a house's last seven years (TDI home insurance guide). A small claim stays on the house's record for years after the tenant leaves.
- Recovery from the tenant, and the deposit. On the TDI form you may waive your right to recover from someone in writing before a loss; if you haven't, the insurance company "may require an assignment of rights of recovery for a loss to the extent that payment is made by us" (TDP-3, Condition 14). In plain terms, it may pursue the tenant for what it paid. The policy pays your loss, and deposit money you kept for the same repair reduces that loss, so tell the adjuster about it. The TDP-3 also makes the policy void as to you if you intentionally conceal a material fact "whether before or after a loss." Texas law limits such clauses: a false statement in the application counts only if it was material to the risk or contributed to the loss (§705.004), and one in a proof of loss only if it was made fraudulently, was material to the insurer's liability and misled the insurer into waiving or losing a valid defense (§705.003) (Ins. Code ch. 705).
Rent the tenant didn't pay is a separate question: loss of rent coverage pays only while a covered loss is repaired, not when a tenant stops paying. See Loss of rent coverage for Texas landlords.
Document it before you need it
Disputes over tenant damage, with the tenant or with an insurance company, often turn on what the house looked like before.
At move-in and move-out
- a walk-through with dated photos or video of every room, including closets and appliances, signed by the tenant where you can;
- the lease terms on damage, pets and renters insurance;
- receipts and dates for recent work (new carpet, paint, appliances), which help separate damage from wear and tear.
If you file a claim
File it directly with your insurance company, using the claims contact on your policy. TDI's advice: "Tell your company as soon as possible," take "pictures or videos of the damage before making any repairs," and "make only temporary repairs to protect your house". It adds: "Don't make permanent repairs. The insurance company might deny your claim if you make permanent repairs before it sees the damage." Keep every receipt (TDI home insurance guide). The TDI form also asks you to "notify the police in case of loss by theft" and to "keep an accurate record of repair expenses" (TDP-3, Duties After Loss). For vandalism, a police report is worth having too.
For the deposit
Keep the itemized list you sent, proof of when you sent it, and the invoices behind each deduction.
Guests in a short-term rental raise their own questions about damage and platform protections; see Short-term rental insurance gaps in Texas.
A short checklist
- Do you know whether your policy is a basic or special form, and whether vandalism is on it?
- Does the forms list mention tenants, vandalism or vacancy?
- Does the lease require renters insurance, and do you collect proof?
- Do you have dated move-in photos for the current tenant?
- After a move-out, is the itemized deposit list going out within 30 days?
- If the house will sit empty while you repair it, has your insurance company been told?
AIV Insurance is an independent insurance agency in Texas. We are not an insurance company, and we don't handle claims: claims are filed with the insurance company named on the policy, and your policy decides what is covered. We can read your policy's wording on tenants, vandalism and vacancy with you before you need it. Reach us through the contact page or at hello@aivinsurance.com.
Frequently asked questions
Does landlord insurance cover damage caused by a tenant in Texas?
Sometimes. Sudden damage, such as a kitchen fire, and deliberate damage (vandalism) are covered by many landlord policies, subject to the deductible where one applies. Vandalism is not covered once the house has been empty longer than the policy allows, some policies exclude or limit damage by tenants, and wear and tear is not covered. Your policy's forms decide it.
Is vandalism by a tenant covered by landlord insurance?
Often, yes. The Texas Department of Insurance's standard dwelling form (TDP-3) has no exclusion for damage by a tenant and covers vandalism, unless the house was vacant for 60 days in a row before the loss (TDP-3). Some insurers' own landlord forms do exclude or limit vandalism by tenants, so read your forms list rather than assuming either way.
Does landlord insurance cover normal wear and tear?
No. Worn carpet, faded paint and scuffed walls are maintenance, not a covered loss: the Texas Dwelling Policy Form 3 (TDP-3) excludes "wear and tear, deterioration" (TDP-3). Texas law also says a landlord "may not retain any portion of a security deposit to cover normal wear and tear" (Tex. Prop. Code §92.104).
How long does a Texas landlord have to return a security deposit?
The deposit must be refunded on or before the 30th day after the tenant surrenders the premises, with a written, itemized list of any deductions (Tex. Prop. Code §92.103, §92.104). The landlord does not have to act until the tenant gives a written forwarding address. For your own situation, ask an attorney.
Should I file an insurance claim or use the security deposit?
For damage smaller than your deductible, a claim pays nothing, so the deposit and the tenant are the usual route. For large sudden or deliberate damage well beyond the deposit, a claim may make sense; your insurance company may then pursue the tenant for what it paid. Tell the adjuster about any deposit you kept for the same repair.
Does landlord insurance cover damage from a tenant's pet?
Often not. The Texas Dwelling Policy Form 3 (TDP-3) excludes loss "caused by animals or birds owned or kept by an insured or occupant" (TDP-3). Other forms word their animal exclusion differently, so check yours. Pet damage is usually a matter for the lease and the deposit.
Sources
- Texas Department of Insurance, Texas Dwelling Policy Form 3 (TDP-3, revised January 1, 2002), as mirrored by the Independent Insurance Agents of Texas
- Texas Department of Insurance, Texas Dwelling Policy Form 1 (TDP-1, effective July 8, 1992, revised January 1, 2002), as mirrored by the Independent Insurance Agents of Texas
- Texas FAIR Plan Association, TFPA Dwelling Policy (edition date October 28, 2024)
- Texas Insurance Code §2301.052 (regulation of policy forms and endorsements)
- Texas Insurance Code Chapter 705 (§705.003 misrepresentation in a proof of loss; §705.004 misrepresentation in a policy application)
- Texas Department of Insurance, Commissioner's Order CO-03-0110, New Property Endorsements (2003; adopts one insurer's dwelling forms and compares them with the TDP-3)
- Texas Property Code, Chapter 92 (§92.001 definition of normal wear and tear; Subchapter C, security deposits, §§92.101–92.113)
- Texas Department of Insurance, Renters insurance: What does it cover and how much does it cost? (updated December 10, 2025)
- Texas Department of Insurance, Home insurance guide (cb025, updated June 1, 2026)
Last reviewed . Rules, figures and web pages change; the linked source is the authority.
Related guides
- Landlord vs renters insurance in TexasYour landlord policy covers the building and your own things; your tenant's renters policy covers theirs. How the two fit, and what Texas law says.
- Vacant rental property insurance in TexasUnder the standard Texas dwelling form, fire and vandalism aren't covered after 60 days vacant. Freezing, renovations, and what to tell your insurer.
- Texas landlord insurance: what a DP-3 coversHow a DP-3 landlord policy works in Texas, what it usually leaves out (liability, theft, flood, foundation), and what to check before your renewal.
- How to read a Texas rental declarations pageHow to read the declarations page on a Texas landlord policy: who is insured, the form, limits, both deductibles, your lender, taxes and red flags.
- Water damage and flood on a Texas rentalA burst pipe is usually covered; flood, slow leaks, drain backups and slab movement often aren't. How a Texas landlord policy treats each kind of water.
- Loss of rent coverage for Texas landlordsLoss of rent (fair rental value) coverage pays rent you lose while a covered loss is repaired, not unpaid rent. Limits, how long it lasts, Texas lease rules.