With its sunny weather, cultural attractions and natural beauty, it’s no wonder the Golden State has the largest population in the US. High real estate prices prevent many people from becoming homeowners leaving almost half of homes in California as rental properties. With traditionally low vacancy rates, it’s a good place to be a landlord.
While landlord insurance is not a requirement, it’s a wise idea to protect your real estate investment and ensure you’re not paying unexpected expenses out-of-pocket.
How Does Landlord Insurance Work in California?
Landlord insurance is intended to protect landlords from common expenses and incidents that occur when you have a tenant. It’s important to note that not all insurance policies are created the same; some offer varying degrees of coverage. However, most landlord insurance policies should offer:
- Liability coverage. Many unforeseen events can occur, even if you take reasonable precautions. For example, a tenant may trip on a crack on your driveway and break her arm. Should your tenant decide to pursue action against you, you’ll end up footing a huge bill. Liability coverage is probably the most important type of coverage you should have as a landlord.
- Personal property coverage. Personal property includes items such as furnishings, curtains, fixed appliances, lighting, and carpets. Some damage is bound to occur, whether it’s through normal wear-and-tear, accidental or intentional causes.
Things You Need to Know Before Getting a Quote
To receive an accurate quote, you’ll need to gather some basic information about your rental suite(s) first such as:
- Address of rental(s).
- Number of rental properties.
- Unit sizes.
- Approximate value of rentals.
- Additional details such as whether your units have fire and security systems, whether plumbing and electrical systems meet code, whether tenants are allowed to smoke or have pets and if there is a pool or gym on the premises.
- A brief history of claims (if any).
You should have a rough idea of what type of coverage you’re seeking along with desired deductibles. If you own more than one rental property, be sure to ask about multi-unit discounts and coverage. Other discounts to inquire about include discounts for professional, educational or industrial affiliations.
Does Landlord Insurance Cover Tenant’s Personal Property?
Landlord insurance typically only covers structural damages to the building and to fixed appliances — it doesn’t protect a tenant’s personal property on the premises. You can encourage tenants to apply for their own personal renter’s insurance.
Luckily, getting landlord insurance in the state of California is generally affordable and easy to obtain. Do a bit of research with different companies and be sure to request additional coverage if you think you’ll need it. Give Insurance by Castle a call today to help get the process started at 800.644.6443.
