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5 August, 2021 0
A Quick Guide To Landlord Insurance In California

A Quick Guide to Landlord Insurance In California

The Uniform Residential Landlord and Tenant Act (URLTA) requires every landlord to keep their rental properties habitable. By doing so, you will not only increase the occupancy rate of your rental units, but you will also be protecting yourself from unnecessary expenses. One of the ways to protect your rental property is to purchase the right landlord insurance policies. These policies will cover the costs resulting from property damage due to perils such as fire, natural disasters, vandalism, and water damage. Note that you are only responsible for your assets, not the tenant’s belongings. For instance, if you rent fully furnished apartments, your insurance coverage should also include the furniture. To get you started, here is a quick guide to landlord insurance in California.

Loss of Rent

Every year, natural disasters and the resulting property damage cause millions of Americans to relocate.When such incidents happen, landlords also suffer massive losses, including loss of rent. For example, if fire damage makes your rental home uninhabitable, forcing the tenant to move out, you will lose rent from that unit. The good news is that if you have a loss of rent coverage, your insurer will reimburse you for the lost rent if a tenant vacates your house due to a covered peril. If your tenant moves willingly, is evicted, or your rental unit is habitable but unoccupied, this policy will not pay for the lost rent.

Personal Liability

This policy protects you from liability claims that may result from injuries sustained on your rental property.  For instance, if a prospective tenant comes to inspect your rental property and slips on the wet floor, breaking their arm, they may sue you for the injury. Additionally, a tenant may sue you for wrongful eviction or breach of the lease agreement. In such situations, the right personal liability insurance will cover the legal expenses, medical expenses, and other resulting costs. Having personal liability insurance is especially important if your rental property has high-risk assets such as a swimming pool, a trampoline, an aggressive dog, and bathtubs.

Contents and Systems

Like earlier said, landlords are only supposed to look after their properties, not the tenants’ possessions. However, there are exceptions where content coverage is necessary for the landlord insurance, such as when:

  • You rent a furnished house
  • You include dishwashers and washing machines in your rental packages
  • Your rental homes include items such as carpets, blinds, and portable air conditioners

Additionally, your landlord insurance should include coverage for plumbing, heating, and electrical systems such as heaters and boilers in your rental property. In case such systems break down, it is your responsibility to pay for the repair and replacement costs.

Buildings

A landlord building insurance policy typically covers damage to the structure of your rental property due to perils such as ice, vandalism, snow, wind, fire, lightning, hail, and earthquakes. It is crucial to note the numbers and types of perils covered, depending on the size of coverage you have as well as the insurance company. Take note that the landlord building insurance can also cover the cost of rebuilding your rental property in case of irreparable damage, although this depends on the size of coverage you carry. Remember, landlord insurance has various exclusions, and knowing them is the first step towards getting enough coverage for your rental property.

By following these guidelines, you can find the right landlord insurance coverage in California. Additionally, you can contact our experts at Fuller Insurance Agency in Southern California to learn more about getting the appropriate coverage for your needs. We are happy to assist you with all of your coverage needs.

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