What to Know About Landlord Insurance in California

As a rental property owner in California, it's important to have landlord insurance to protect your investment. Rental property insurance can help cover the cost of repairs if your property is damaged, and it can also help you recoup lost rent if your tenants have to move out due to an unforeseen event.  

While you may be required to carry certain types of insurance by your lender, there are other coverage options that you may want to consider as well. If you currently own rental property or are considering purchasing an investment property in California, keep reading to learn more.

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What Landlords Should Know About Insurance in California

As a landlord in California, you probably know that there are plenty of natural hazards to be aware of. From earthquakes and wildfires to mudslides and flooding, the Golden State is no stranger to disasters. And while you can't control when or where a natural hazard will strike, you can take steps to protect your rental property from damage.

One of the best ways to do this is by carrying landlord insurance. A landlord insurance policy can help cover the cost of repairs if a covered hazard damages your rental property. It can also help replace lost rent if your tenants have to move out while repairs are being made to the dwelling if loss of rent is covered by your policy . Plus, if you face a lawsuit by a tenant for damages caused by a covered hazard, your landlord insurance policy can help pay for your legal defense costs and damages you may be found liable for.

There are two main types of landlord insurance policies: named perils and all-risk. Named perils policies cover only the risks specifically named in the policy, while all-risk policies provide coverage for any risk that's not explicitly excluded. Named perils policies are generally less expensive than all-risk policies but provide less protection. All-risk policies are more expensive, but they offer more comprehensive protection.

Some of the common perils landlord insurance covers may include:

• Fire
• Lightning
• Windstorm or hail
• Explosion
• Riot or civil commotion
• Smoke
• Vandalism or malicious mischief
• Water damage (from burst pipes, etc.)
• Theft
• Volcanic eruption

Depending on where your rental property in California is located, wildfire, earthquakes, and floods may be a possibility. That's why it's important to consider wildfire, earthquake, and flood coverage in your landlord insurance policy. This type of coverage will protect your property in the event of an wildfire, earthquake, or flood and help you avoid some of the financial burdens that come with repairs. However, remember that earthquake and flood coverage are  typically optional in landlord insurance policies, so be sure to ask about them when shopping for general  coverage. Each of the above forms of coverage is important to consider as each needs to be purchased separately.

There are also a number of things a landlord in California can do to help reduce the risk of having to make an insurance claim for a rental property. Perhaps the most important is to keep up with necessary maintenance and repairs. By keeping the property in good condition, you can help to avoid many common causes of damage, such as water leaks or fire.

Fewer insurance claims mean lower premiums for landlord policies in California. Some landlord insurance companies offer a discount for policyholders who have no claims within a certain period of time, typically three to five years. Other insurers give their best rates to landlords with claim-free histories stretching back even further.

Before you purchase a landlord insurance policy, be sure to check with your mortgage lender to see if they have any requirements for the type of coverage you need. You should also shop around and compare rates from different insurers to find the best deal.

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How to Find the Best Landlord Insurance Policy for Your Needs in California

There are a few key things to remember when searching for California landlord insurance.

1. It's important to know what type of coverage you need. There are policies that cover property damage, liability, and loss of rental income. You'll want to ensure you have the right coverage for your particular situation.

2. It's helpful to get quotes from multiple insurers. This will give you a good idea of the range of prices for landlord insurance in California. It's also a good opportunity to compare coverages and find the policy that best meets your needs.

In fact, one of the many benefits of working with an online insurance broker like Obie is the wide range of choices and the simple, affordable, and transparent process:

• You can compare rates from multiple insurers easily and quickly without making appointments or meeting with multiple agents.
• You can do all of your research and shopping from the comfort of your own home.
• Online brokers typically have lower overhead costs than traditional agents, which means they can offer more competitive rates.
• You can get instant quotes and purchase landlord insurance online without waiting for an agent to get back to you.

3. Finally, be sure to read the fine print on any policy you're considering. Landlord insurance policies can vary widely in terms of what they cover and how much they cost. By taking the time to read through the policy, you'll be sure you're getting the coverage you need at a price you're comfortable with.

With these tips in mind, you'll be well on your way to finding the best landlord insurance policy for your needs in California.

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What Obie Customers are Saying

With Obie, you can get an instant quote in all 50 states and purchase the policy online. It's faster than ever before to protect your investment with Obie’s easy process! Plus, people save 25% on average when buying their property insurance through Obie.

Here's what Obie customers are saying about their experience with the company:

"What a fantastic experience! A REAL person answered the phone. I called back with questions 4 times and all 4 times Alexander Park answered the phone and answered my questions thoroughly. Alexander Park was outstanding to deal with! Thank you Obie Insurance!" - F. Cerbone.

"Love Obie! Was able to get a speedy insurance policy that was priced better than quotes from other companies. Would recommend." - T. Baker

"Super efficient and friendly service. Not to mention excellent rates." - Rhett E.

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Get an Instant Quote From Obie Today

Landlords and real estate investors know how important it is to have the right insurance. But with so many options available, finding a policy that fits your needs can be tough - especially if you don't want any of those pesky paper applications or weeks-long wait times for quotes!

That’s where Obie comes in. Obie offers insurance specifically built for landlords and real estate investors. No paper applications, weeks-long waits for quotes, or back and forths with brokers. On average, people save 25% on their rental property insurance with Obie.

So what are you waiting for? Get an instant quote for landlord insurance from Obie today.