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Investing in rental properties can be profitable, but being a landlord comes with a variety of risks. Fire, wind, theft, vandalism and accidents are just a few of the risks that landlords in California must protect against. Landlord insurance can play an integral role in protecting against covered risks like these.
Landlord insurance is specialized commercial insurance for the owners of leased properties. In order to offer landlords the multiple protections that they need, most of these policies are package policies and have more than one coverage in them.
Most investors who have rental properties in California ought to consider purchasing a landlord policy that provides both landlord property and landlord liability insurance coverages. This includes individuals, sole proprietors, LLCs and other corporations that lease rental units.
Homeowners who rent out a room usually don’t need a full-fledged landlord policy, but they might need optional protection added onto their homeowners policy. An insurance agent who specializes in landlord and homeowners policies can help homeowners in this situation find the insurance they need.
Providing short-term rentals also requires careful consideration when selecting insurance. Most homeowners policies don’t include coverage for short-term rentals within this standard protections, but they might offer the necessary additional coverage as an option. Alternatively, investors who provide short-term rentals might need a short-term rental or a landlord policy.
As mentioned, most landlord policies come with multiple coverages. A range of perils that could cause property damage or loss are usually covered, and landlord liability insurance coverage is also typically included. Some other coverages that policies may offer include:
Usually covers lost rents if a covered peril renders a building uninhabitable
Usually covers lost rents if tenants fail to make multiple monthly payments
Usually covers legal expenses associated with lawsuits other than liability suits
Policies may offer coverages in addition to these. An insurance agent can explain all available coverage options and when those coverages might be useful.
Premiums for landlord policies vary, as they’re based on multiple factors. Some of the details that can influence premiums for both landlord property and landlord liability insurance coverages are a property’s:
The chosen landlord property and landlord liability insurance coverages also obviously impact premiums, as do deductibles and limits. An insurance agent who knows these policies well can help landlords select the coverages, deductibles and limits that make sense for their properties.
One of the easiest ways to find out how much insurance will cost in a particular situation is by comparing policies with an independent insurance agent. Unlike captive agents who primarily work with a single insurance company, independent agents aren’t linked to any specific insurer. Independent agents can therefore request and compare quotes from multiple insurers, which makes comparing coverages and premiums easy.
For help finding landlord insurance to protect California properties, contact the independent insurance agents of Crusberg Fuller. Our agents have the expertise to help you find a policy that will protect your properties well, and we can recommend the best available properties regardless of what insurance company offers them. With our assistance, you can be confident that your chosen policy provides robust protection.
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