Everything you need to know about protecting your rental investment with the right landlord insurance coverage. Learn about policy types, costs, coverage options, and how to choose the best protection for your Bay Area properties.
Landlord insurance (also called rental property insurance) is a specialized policy designed to protect property owners who rent out residential properties. Unlike standard homeowners insurance, which covers owner-occupied homes, landlord insurance addresses the unique risks and liabilities associated with rental properties.
Standard homeowners insurance typically will not cover a property you rent to tenants. If you're renting out a property without landlord insurance, you could be financially exposed to significant losses.
Protects the physical structure of your rental property and any attached structures (garages, sheds) from covered perils including:
Covers legal and medical costs if someone is injured on your rental property. This includes:
Typical Coverage: $500,000 to $1,000,000 in liability protection
Reimburses you for lost rental income when your property becomes uninhabitable due to a covered event. This coverage includes:
Costs vary based on location, property value, coverage limits, and claims history
Properties in high-risk areas (flood zones, earthquake zones, high-crime neighborhoods) cost more to insure
Older properties or those with outdated systems (plumbing, electrical, roof) typically have higher premiums
Higher dwelling coverage limits and lower deductibles increase your premium
Previous claims on the property can significantly increase insurance costs
Short-term rentals (Airbnb) often require specialized policies with higher premiums
Security systems, smoke detectors, and sprinkler systems can lower premiums
Determine how much it would cost to rebuild your property from scratch (not the market value). This ensures you have adequate dwelling coverage.
Pro Tip: Get a professional appraisal or use your insurance company's replacement cost calculator
Most experts recommend at least $1,000,000 in liability coverage for rental properties. Consider an umbrella policy for additional protection.
This protects your monthly cash flow if your property becomes uninhabitable. Calculate your monthly mortgage, taxes, and expenses to determine the right amount.
Standard policies don't cover earthquakes or floods. For Bay Area properties, these additional policies are often essential:
Required for properties in FEMA flood zones
Highly recommended for all California properties
Get quotes from at least 3-5 insurers to find the best coverage at competitive rates. Consider working with an independent insurance broker.
Top Landlord Insurance Providers: State Farm, Farmers, Allstate, Nationwide, Liberty Mutual, and specialty providers like Obie or Steadily
Get answers to frequently asked questions about protecting your rental property
As your property management partner, Loose Leaf Properties can help you navigate insurance requirements, connect you with trusted insurance providers, and ensure your property is fully protected.
Work with a property manager who can help you stay on top of insurance requirements and coordinate with insurers during claims.