Why rental property owners in California need landlord insurance (2024)

FAQs

Why rental property owners in California need landlord insurance? ›

As a landlord in California, you know that owning rental property comes with a unique set of risks. From liability for accidents that happen on your property to physical damage to the home, there are many potential threats to your investment. That's why it's so important to have quality landlord insurance in place.

While the state doesn't mandate landlord insurance, it's highly advisable to protect your interests and investments. Landlord insurance offers financial protection and peace of mind, helping you navigate potential risks and unexpected situations.

So, how much renters insurance should a landlord require a tenant to have? The best practice is to require a renters policy that covers the replacement cost of the tenant's belongings and provides at least $100,000 in liability coverage. This protects both parties' interests in the event of an unforeseen circ*mstance.

Landlords have property insurance, but those policies are designed to cover the building, rather than your personal items. Many renters don't purchase renter's insurance, either because they don't think it is necessary or believe they are covered under the landlord's policy.

Without a renters policy in place, damage or injury from a gathering gone wrong could be your responsibility. Renters insurance can help protect a landlord against tenant negligence. Tenant negligence can take many forms, ranging from a kitchen fire while cooking to water damage from an overflowing tub.

The average cost of landlord insurance in California is $1,728 per year. Obie, Travelers, and Safeco all offer landlord insurance in California.

While renters insurance isn't required in California by state or federal law, it might be required by your landlord or by the building manager if you're moving into an apartment complex.

The Cost of Renters Insurance in California

According to data collected by Quadrant Information Services in 2024, renters insurance costs $147 per year or $12.21 per month on average in the state of California.

Unlike some other states, California landlords are allowed to require tenants to obtain and maintain renters insurance while they are under the terms of the lease.

What is the most common amount of renters insurance coverage? Renters insurance commonly covers around $30,000 in property damage and $100,000 in liability coverage.

Is it bad to not have renters insurance? ›

If you don't have renters insurance, you won't have coverage for your belongings if they are stolen or damaged by problems like vandalism and fire. That means you'll have to pay out of pocket to replace or repair your items if they are damaged or stolen.

What damages to my property does renters insurance protect against in California? Renters insurance protects your stuff against several potential damages (or 'perils' in insurance speak), including theft, fire, vandalism, and water damage from things like burst pipes.

55%: 55% of renter-occupied homes across the United States have renters insurance. 45 million: Across the United States there are roughly 45 million renter-occupied homes. 25 million: Of the 45 million tenant occupied homes, more than 25 million of them have renters insurance.

Proof of renters insurance is a physical or digital copy of your policy detailing what's included and who's protected. Sharing it with your landlord provides peace of mind for both parties, meeting rental agreement terms. By Mark Fitzpatrick.

Renters insurance covers personal property, personal liability, medical payments and additional living expenses or loss of use, up to the limits of your policy.

Why would someone want to have renters' insurance if their building owner has insurance? The building owner's insurance only covers the building structure. Renter's insurance covers your personal property.

Eviction Costs: Evicting a tenant in California can be a complex and legally intricate process. Landlord insurance can help cover the legal expenses associated with evictions.

Homeowners insurance is not required in the state of California, but if you're financing your home through a mortgage lender, they'll probably require it as part of your loan terms.

Yes, you do need rental car insurance in California. Rental car companies in California are not required to automatically provide the state's minimum liability insurance as part of their standard contract, so you must have separate liability coverage when you rent a car in California.

Although renters insurance isn't required by Louisiana law, your landlord or the company that manages your building may mandate a renters policy before you can move in. Even if you're not required to carry renters insurance, a renters policy is generally affordable and may cover your belongings against certain perils.