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Landlord Insurance in California

Business Interruption Insurance California
Landlord Insurance California

What is it?

Landlord insurance policies provide specialized coverage for leased residential investment properties. Policies can protect against both property damage and liability lawsuits.
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Who needs it?

In certain situations, landlord policies might alternatively be used for other investment properties. An insurance agent who specializes in these policies can help investors determine whether a landlord policy is suitable for commercial, mixed-use or other properties.
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Coverages

Dwelling CoverageContents CoverageLoss of Income Coverage
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What is landlord insurance?

Rental properties can be highly profitable sources of passive income, but they present substantial risks that investors should protect against. Without adequate insurance, a single claim could have financially devastating effects. Landlord insurance helps California businesses and individuals who invest in these properties protect themselves.

Landlord insurance policies provide specialized coverage for leased residential investment properties. Policies can protect against both property damage and liability lawsuits.

Landlord Insurance California

Who in California should carry a landlord policy?

Most landlords that have residential investment properties in California should carry landlord policies. This includes sole proprietors, partnerships, LLCs and others with properties.

In certain situations, landlord policies might alternatively be used for other investment properties. An insurance agent who specializes in these policies can help investors determine whether a landlord policy is suitable for commercial, mixed-use or other properties.

Should homeowners carry a landlord policy when renting out a spare bedroom?

Homeowners usually don’t need a full-fledged landlord policy if they’re renting out one or two spare rooms in their house. Homeowners might still need some coverages added onto their homeowners policy, though.

A knowledgeable agent can help homeowners make sure they’re well protected when renting out a bedroom. An agent who’s familiar with landlord policies will be able to also help adjust a homeowners policy’s coverages.

Should property owners carry a landlord property when providing short-term rentals?

Short-term rentals don’t necessarily require a full landlord policy, but some insurance coverages usually need to be required. These coverages might be obtained through a homeowners policy, Airbnb/short-term rental policy, or landlord policy. Which is best depends on the specific situation, and an experienced agent can again help with finding the best solution.

What protections are included within landlord policies?

While the specific coverages included within landlord policies can vary, the vast majority of policies make protections such as the following available. These might be standard or optional protections:

  • Dwelling Coverage: May protect the leased building(s) against damage
  • Contents Coverage: May protect the landlord’s items inside a building against damage
  • Loss of Income Coverage: May protect against rental losses if a building is significantly damaged
  • Rent Guarantee Coverage: May protect against rental losses if a tenant fails to pay their due amounts
  • Legal Assistance Coverage: May protect against legal expenses that arise from non-liability lawsuits
  • General Liability Coverage May protect against basic accidents that occur on leased property
  • Umbrella Coverage: May protect against large lawsuits that exceed other coverages’ limits

Any contents coverage that landlord policies provide is normally limited to only items that a landlord owns. Protection might extend to appliances, HVAC equipment, and furniture in furnished units, for example. Protection normally doesn’t extend to items that tenants own.

Both general liability and umbrella coverages are important components of landlord liability insurance. Without both coverages, there might not be enough landlord liability insurance for a large claim. For example, landlords may find their legal costs exceed coverage if multiple people are seriously injured or pass away during a tragedy.

 

Landlord Insurance California

Do landlord policies provide any protections for tenants?

Landlord policies normally don’t provide protections for tenants, including for their belongings or liability risks. Tenants should be encouraged to purchase their own renters insurance policy. Renters insurance is specifically designed for renters.

In some cases, landlords require tenants to purchase a renters policy with liability coverage. If tenants don’t have liability coverage and they burn down a property, landlords might have little recourse.

Landlords can also be lawsuit targets if someone is injured on the property due to a tenant’s actions, but the tenant has no liability coverage. Affected parties are more likely to go after landlords in these situations, because their landlord liability insurance coverage may pay more than what tenants personally are able to afford.

How can California landlords get landlord insurance?

For help insuring residential investment properties that are located in California, contact the independent insurance agents at Heffernan Walton Insurance. Our agents will work closely with you to determine coverage needs, and then help you select a landlord insurance policy that robustly meets those needs.

About Us

Heffernan Walton Insurance Services is an independent insurance agency with two offices in San Jose.

Give us a call, stop by, or request a quote online to find out how much we can save you on your insurance.

Contact

Heffernan Walton Office

 
1731 Technology Drive, Suite 250
San Jose, California 95110
 
877-265-2801
408-265-2800
 
408-265-9174
 
service@heffwalt.com
 
 

© 2024 Walton & Associates Insurance | This material is for informational purposes only. All statements herein are subject to the provisions, exclusions and conditions of the applicable policy, state and federal laws. For an actual description of coverage, terms and conditions, please refer to the applicable insurance policy or check with your insurance professional. The illustrations, instructions and principles contained in the material are general in scope and, to the best of our knowledge, current at the time of publication.


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