A Guide to California Landlord Insurance

Learn the unique factors that affect the price of California landlord insurance, as well as strategies to lower your premiums.

Gemma Smith
Last Updated
September 12, 2023
A Guide to California Landlord Insurance

From the iconic skyline of San Francisco to the bustling streets of Los Angeles and from the stunning vistas of Yosemite to the serene beaches of Santa Barbara, California's allure is undeniable. It remains a top choice for both visitors and residents alike.

However, owning property in this picturesque state isn't without challenges. For landlords, regions prone to wildfires, coastal areas at risk of floods, and cities with a history of earthquakes present real concerns. The unpredictability of these natural disasters can translate to substantial financial burdens if one isn't prepared.

The right landlord insurance becomes pivotal. Beyond mere protection of physical property, it can cover liability claims for accidental tenant damage and ensure continued rental income even in the face of adversity.

In this guide, we'll delve into the nuances of California landlord insurance, unpacking the variables that dictate its costs. We'll also share strategies to fortify your rental portfolio and insights on potentially lowering those premiums. Stay with us as we navigate the intricacies of your landlord insurance coverage, safeguarding your Californian investments.

A brief overview of California’s real estate market 

California has several highly populated cultural hubs — including the Bay Area and Silicon Valley, Los Angeles, San Diego, and Sacramento. As cities continue to grow, the cost of living rises, and available real estate becomes more limited — this trend has led to a surge in the rental housing sector, with many Californians opting for rented spaces.

The robust rental market in the Golden State undoubtedly offers a lucrative opportunity for landlords. However, owning a rental property in California isn't without its hurdles. A prime concern is the growing difficulty of securing comprehensive landlord insurance, primarily due to the state-specific hazards. Wildfires, earthquakes, and coastal flooding are among the recurrent threats that property owners grapple with.

California is also particularly strict about maintaining a high quality of living for renters — and enforces laws around renters' rights, building codes, and more. Landlords in California must be thorough and consistent about keeping up with these rules; otherwise, they risk legal ramifications. 

Another unique factor that comes into play in California's rental market is that many tourists are visiting for vacations. Landlords can purchase property and rent it out long-term. Still, it's also an excellent market for short-term rentals near Disneyland, Lake Tahoe, Sequoia National Park, and other major tourist attractions. While managing a short-term vacation rental can be lucrative, landlords should know that the high turnover requires more time and involvement as tourists come in and out each week. 

All this is to say: many factors affect California landlord insurance rates, and these rates can vary greatly depending on the challenges unique to your area and property. Landlords must be aware of their properties' unique risks and prepare with the proper coverage. 

How much insurance do I need for my California investment property?

While some states and zip codes require minimum coverage or specific policies — as do mortgage companies — choosing how much landlord insurance you buy is primarily a personal decision. That said, there are some important factors to consider when setting the limits of your personal property and liability coverage in California, including:

  • Your property’s unique risks: Are you on the coast? Close to a body of water? In a high-rise building? If so, your property may be more susceptible to damage from wind, water, and other natural perils. Be sure to have coverage for these perils, and ask your agent to recommend other policies or coverages that may help you be more comprehensively protected.
  • How much of your personal property is available for tenant use: What personal property of yours can tenants use, and how expensive is this property? This helps determine your personal property limits on a landlord insurance policy.
  • Your personal risk tolerance: What makes the most financial sense for you? Are you willing to have a higher deductible for lower premiums?

By answering these questions, you can make a more informed decision about how much coverage makes the most sense for you and your property. That said, some California-specific considerations should factor into this decision-making process.

Important considerations for California property insurance

While landlord insurance is not required by law in California, it's highly recommended that rental property owners protect themselves and their investments with proper coverage. In some cases, property insurance may also be required by your homeowner's insurance or mortgage provider.

Here are some of the unique insurance considerations for California landlords:


Although wildfires are part of the natural landscape in states like California, research shows that fire season is starting earlier and ending later each year — in large part due to the ongoing effects of climate change. Now more than ever, landlords must consider wildfire coverage before an emergency strikes. Many homeowners already have fire damage covered as a peril in their regular insurance plans, but this can vary based on insurance carrier or geographic location.

For this reason, landlords must check their policy or consult their insurance agent first to understand whether wildfires are included in their coverage or whether the policy exclusively covers home fires. California landlords should also note that some other insurance companies and carriers will expressly exclude wildfire damage for properties in specific high-risk zip codes, geographies, or even during certain times of the year.


For rental properties along fault lines or in locations historically prone to earthquakes, earthquake coverage is a particularly good idea. In many cases, this is not included in standard landlord insurance but must be added as an endorsement or even a separate policy.

To avoid legal repercussions, it's important to talk to an insurance agent first about whether or not this type of coverage is required for your property's location. As a landlord, you may be liable if the property's structure isn't sound during an earthquake and your tenant is injured. 


Believe it or not, floods are the biggest natural hazard regarding lives lost and overall property damage in the U.S. As the global climate changes, California is experiencing rising sea levels and flooding along its expansive coastline. Landlords must consider this reality and be prepared before water damage affects their properties. The Federal Emergency Management Agency (FEMA) often requires flood coverage in high-risk areas.

Many standard landlord insurance policies don't cover natural disaster flooding. This is a different scenario than a leak in your home due to a plumbing issue. At-home flood situations are often an optional add-on on typical landlord insurance, called a water and sewer/septic backup policy. 

With a partner like Azibo, natural disaster flood insurance is accessible across 51 jurisdictions and covers all flooding scenarios, often including your basement (as many traditional flood insurance policies don't cover below-ground levels). 

Tips for lowering your California landlord insurance premium

Your insurance premium depends on several factors, including geographic location, property condition, and claims history. You can also change your rates by adjusting your desired coverage limits and deductible. Here are a few tips to help you lower your California property insurance premiums:

1. Consider a higher deductible

You can adjust your standard deductible to lower your topline premium in California. For this reason, raising your deductible can be a strategic opportunity to lower your premium. That said, be sure you aren't taking on too big of a deductible if you need to make a large claim. 

2. Take advantage of the California FAIR program

The California FAIR Plan was established so all California property owners can access basic fire insurance — mainly if their property is high-risk and their primary insurer won't cover it. While this option won't necessarily lower your premium, it's helpful if you're having trouble getting property coverage (e.g., in a wildfire-prone zone).

The FAIR program supplements your standard insurance policy and offers more comprehensive coverage that may have been excluded in a traditional policy that is more risk-averse. This type of coverage also applies to coastal properties at risk of hurricanes or other hazardous situations. At Azibo, we can help you navigate this option through our existing relationship with FAIR. 

3. Relocate strategically 

As a rental property owner, you understand the unique risks of renting your home to tenants — especially on the coast or in a wildfire-prone area. If you're considering relocation, opt for an inland property farther away from the water but still in a desirable destination. By reducing your property's risk of fire or flooding damage, you can save significant cash on California landlord insurance and annual premiums. 

4. Prioritize as many safety features as possible

Another way to prepare for risk and lower your premiums is with a thoughtful safety plan. Prioritizing safety measures means outfitting your property with carbon monoxide detectors, replacing traditional water heaters with tankless ones, installing fire-resistant roof coverings (instead of wood shingles), and ensuring bookcases or heavy furniture are hooked to the wall if you’re offering a furnished rental property. Some carriers may offer discounts for going the extra mile to prioritize safety.

Even if they don't, it's a good idea to protect yourself and decrease liability by taking more precautions.

5. Require renters insurance for tenants

Another way landlords can better protect themselves and lower premiums is by requiring renters insurance for tenants. While renters insurance is not required by law in California, some landlords may need it on a case-by-case basis. This is an excellent way to set expectations early on, help renters protect their belongings, and protect your investment. In a state like California, where renters' rights are taken very seriously, guiding your tenants in this direction is a good idea. 

What is not covered by landlord insurance?

While landlord insurance offers a myriad of protections for property owners, there are specific exclusions to be aware of. Ordinarily, it doesn't cover the tenant's possessions. In the event of damage or theft, tenants need renters' insurance for their belongings. Due to the passage of time or regular use, natural wear and tear isn't covered either. Additionally, intentional damage by the landlord or neglect of property maintenance won't be under the policy's protection.

Additional California landlord insurance coverages and policies to consider

With the unique risks that California landlords face, investing in additional coverage on top of your standard landlord insurance can help you and your investment stay protected. Here are some additional policies you may consider:

  • Loss of rent coverage: While rent loss coverage is optional, it's highly recommended in a state like California, prone to natural disasters. When a rental property is severely damaged by a natural disaster, accident, or tenant negligence, it becomes uninhabitable and unable to be rented out. Due to this forced vacancy, landlords can't collect rent payments and will lose their rental income until the property is repaired. With rent loss coverage, the financial burden of a vacant rental property is less severe so long as the policy covers the cause of the claim. 
  • Umbrella insurance: As with loss of rent coverage, landlords don't have to get umbrella insurance in California — but it's a great idea to have comprehensive liability coverage in this highly populated, litigious state. Umbrella insurance helps protect you and your assets in two scenarios: if your primary insurance policy (regular homeowners, landlord, auto, or watercraft policy coverage) doesn't cover you for a specific scenario or if you get caught up in an expensive lawsuit that exhausts the financial limits of your primary plan. 
  • Theft and vandalism coverage: This insurance coverage doesn't refer to damage by a tenant, but rather if someone breaks in and damages a window, spray paints the walls, or causes other structural damage. While this coverage is also optional, it may be a good idea if you live in a highly populated area that has a higher crime rate, like Los Angeles or San Francisco. 

Partner with a specialized local insurance agent through Azibo

Navigating landlord insurance policies is difficult in any state, especially California. Committed to enhancing the landlord experience, Azibo is the only national online commercial insurance producer focused solely on independent landlords. 

Landlord insurance typically costs about 20% more than homeowners insurance. According to NerdWallet, the average cost of homeowners insurance in the U.S. is about $1,820 per year. This would mean the average landlord premium is approximately $2190 per year. Yet many Azibo customers pay annual premiums under $1,000 for landlord coverage. We're proud to provide quick access to a curated set of high-quality insurance carriers — so you get the right coverage at the right price. 

Ready to put insurance hassles in the past? Azibo is here to help. Simplify the California landlord insurance process and get your free quote today

Looking for more state-by-state insurance guides? Check out these resources: 

Guide to New York Landlord Insurance

Guide to Illinois Landlord Insurance

Guide to Florida Landlord Insurance

Landlord insurance California FAQs

What is the best landlord insurance to get?

The best landlord insurance, especially in areas like California with its unique challenges, such as wildfires, earthquakes, and coastal flooding, is comprehensive coverage that safeguards against these specific perils. While many homeowners might have fire damage covered in their regular insurance plans, landlords in California should mainly ensure they have wildfire coverage, especially for properties in high-risk zones.

Additionally, considering the rise of short-term rentals near tourist attractions like Disneyland and Lake Tahoe, having insurance that accommodates high turnover and the associated risks is beneficial. Furthermore, partnering with insurers like Azibo can provide access to policies across 51 jurisdictions, ensuring holistic protection for your rental property.

What is landlord insurance called?

Landlord insurance is often called "rental property insurance" or "rental dwelling insurance." This insurance protects landlords from potential financial losses associated with their rental properties. It generally covers property damage, liability claims, loss of rent due to uninhabitable conditions, and even unintentional tenant damage in some cases. 

Given California's strict regulations around renters' rights, building codes, and more, landlords must have comprehensive coverage tailored to the state's unique risks and requirements.

Is landlord insurance required in California?

While California law does not mandate landlord insurance, it is highly recommended. Given the state's susceptibility to natural disasters like wildfires, earthquakes, and floods, having robust insurance is crucial for safeguarding investments. In many situations, the lender may require landlord insurance if a rental property has a mortgage.

Additionally, while not a legal requirement, many savvy landlords in California make it a point to require tenant renters insurance, further adding a layer of protection. It's worth noting that some specialized coverages, such as flood insurance in FEMA-designated high-risk areas, might be mandatory.

Azibo Insurance Services LLC f/k/a Zibo Insurance Services LLC, a wholly owned subsidiary of Azibo Inc, is a licensed insurance producer. Contact us to discuss your specific insurance needs.

Disclaimer: The information provided in this post does not, and is not intended to, constitute insurance advice; instead, all information, content, and materials are for general informational purposes only. This content may not constitute the most up-to-date insurance information. Readers must contact a licensed insurance agent or company to obtain quotes, advice, and guidance with respect to any insurance matter. No reader, user, or browser of this article should act or refrain from acting on the basis of information herein without first seeking the advice of a licensed insurance producer.

Gemma Smith

With 7 years in property management, Gemma serves as a key content strategist at Azibo.com. While excelling in writing, editing, and SEO, she also enhances Azibo's social media presence. Passionately, Gemma educates others to make informed real estate investment decisions in the ever-changing market.

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