Rental Property
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What is Rental Property Insurance?

California landlords invest a lot in their properties, and those investments ought to be protected when possible. Rental property insurance can help landlords protect their properties and themselves from a variety of potential risks.

Rental property insurance is specialized property insurance for landlords. In order to give landlords protection against multiple risks, these policies usually come as package policies that combine several coverages together.

Who in California Needs Rental Property Policies?

Most landlords in California, including both individuals and businesses, probably should carry rental property policies. Leasing residential, commercial or industrial space comes with certain inherent property and liability risks, and this tends to be the most appropriate type of insurance for leased properties.

For landlords who have more than one property, a multiple rental property insurance policy is likely the most appropriate type of policy. Multiple rental property insurance may be suitable for properties that are adjacent to one another or in different locations, so long as they’re in the same state. 

An insurance agent who specializes in these policies can help find a standard or a multiple rental property insurance policy that’s good for a given property. It’s often necessary to consider not only a property’s location, size, etc., but also how the property is primarily used.

Do Homeowners Who Offer Short-Term Rentals Need Rental Property Policies?

Standard homeowners policies don’t typically cover short-term rentals within their basic coverages. Coverage for these rentals might be available through an add-on feature, however, or it can be procured via a separate policy. An insurance agent who’s familiar with rental property policies can help find a policy solution for this situation.

What Protections Are Available Through Rental Property Policies?

The protections found in rental property policies can be broadly categorized as either rental liability or rental property coverages.

Rental liability coverages normally insure against situations where a landlord might be held financially responsible for injury to someone else or damage to another’s property. This coverage might help pay for a lawsuit related to an accident occurring on a rented property, for example. In most cases, liability coverages will help pay court fees, attorney fees and settlements associated with covered claims.

Rental property coverages normally insure assets themselves, which could include primary buildings, secondary buildings or even equipment (e.g. appliances, lawncare equipment) kept in buildings. Exactly what property a policy covers depends on the policy’s terms and conditions.

Along with these two categories, many rental property policies also provide protection against revenue losses. These protections might come in the form of:

Loss of Income Coverage:

Normally provides financial assistance if a property is uninhabitable following a covered disaster

Rental Guarantee Coverage:

Normally provides financial assistance if tenants repeatedly fail to make their rent payments

Legal Assistance Coverage:

Normally provides financial assistance to cover legal costs not associated with a liability claim

Policies may offer still more coverages than these.

How Much Are Rates for Rental Property Policies?

Premiums for rental property policies vary, as they’re based on many different criteria. Some of the details that can impact a policy’s rates are the:

  • Location of a property
  • Type of property
  • Number of units in a property
  • Number of properties insured
  • Past claims history of landlord

An independent insurance agent who’s able to request quotes from different insurance companies can help landlords check how much insuring a particular property will be.

How Can California Landlords Get Rental Property Insurance?

For help insuring a rental property that’s located in California, contact the independent insurance agents at Crusberg Decker Financial. Our agents can assist with insuring residential, commercial and industrial properties, and we can recommend the most suitable rental property insurance policy regardless of what insurance company offers it.