Owning a rental property in Los Angeles comes with more to protect than the building itself. A fire or water loss can interrupt rent, and an injury on the property can lead to a liability claim. Landlord insurance helps address those risks, but the coverage you need depends on the property and how it is occupied.
What does landlord insurance cover?
Depending on the policy, landlord insurance may include:
- Dwelling coverage to repair or rebuild the rental building after a covered loss.
- Landlord personal property coverage for items you own and leave at the property, such as appliances.
- Premises liability coverage if someone is injured and you are held responsible.
- Loss of rental income coverage if a covered loss makes the property uninhabitable while repairs are made.
Limits, covered causes of loss, and exclusions vary by policy. Loss of rent generally depends on a covered property loss; it does not pay simply because a tenant stops paying or a unit is hard to rent.
Your landlord policy generally does not insure your tenant’s personal belongings. Tenants should consider their own renters insurance.
What should Los Angeles landlords pay close attention to?
Rebuilding cost. Insure the structure based on an estimate of what it would cost to rebuild, rather than its purchase price or market value. The value of the land is generally not part of the dwelling insurance amount.
Water damage. Compare the deductible, any water damage limit, and whether sewer or drain backup requires separate coverage. A quote that includes “water coverage” may still have important restrictions.
Earthquake. Most homeowners and dwelling fire policies do not include earthquake damage. Ask about a separate earthquake policy or available endorsement if you want that protection.
Property type and occupancy. Tell your broker whether the property is a single-family rental, duplex, fourplex, condo, or home with an ADU. Also disclose whether it has a long-term tenant, is vacant, or is used for short-term rentals. These details can affect eligibility and coverage.
Building condition. For a property within the City of Los Angeles, check whether any city retrofit requirements apply to the building. The city has a mandatory soft-story retrofit program for certain buildings.
What if I can’t find a regular landlord policy?
You may have other options to explore with your broker. The California FAIR Plan is available to applicants who have difficulty finding coverage, but it provides limited protection. A separate Difference in Conditions (DIC) policy may be needed to add coverage for risks the FAIR Plan does not insure, such as liability and certain water losses. The two policies must be reviewed together so their limits and effective dates align.
What information do I need for a quote?
To shop a Los Angeles rental property, have these details ready:
- Property address, year built, and number of units
- Whether you live in any unit and how the others are occupied
- Current policy or declarations page, if available
- Roof age and updates to plumbing, electrical, and heating
- Prior claims and desired effective date
- Photos of the building, if requested by the insurer
Looking for landlord insurance in Los Angeles? StarWest Insurance Services can help you compare available options for your rental property. Call (714) 893-7271.
Coverage is subject to underwriting and the final policy’s terms, limits, exclusions, and deductibles.