Everything you need to know about Sacramento Rental Property Insurance

Eugene C Yates Insurance Agency has rental dwelling policies & other rental unit protection for your property used to maintain the unit, cover you for liability claims, and in some cases provide lost rental income.

The Rental Protection Agency reports there are roughly 11 million + landlords in the United States and a new rental unit hits the market every 80 seconds. With the added popularity also comes additional risk. This doesn’t account for the responsibility the landlord has to take on in finding good tenants and maintaining the property. 

If part of the home is damaged or destroyed by a storm of severe weather it will be the landlord that picks up the bill and if it has to come out-of-pocket you could be looking at tough financial loss. With risks like these on the line it makes sense to get a comprehensive rental property insurance policy. 

What is Sacramento Rental Property insurance?

Rental property insurance will step in and help to cover you financially if your rental property its damaged or destroyed by a covered peril. Rental property insurance can also help to cover you for any lost rental income if your tenant is unable to use the home due to a covered peril damaging or destroying the home. Most covered perils can include storms, fire, severe weather, vandalism, and other catastrophic events. 

What does rental property insurance cover?

Most rental property insurance policy will contain the same basic forms of coverage such as:

Property damage insurance:

Your rental property insurance coverage will protect the structure of the home from damage caused by a covered peril such as fire, severe weather, theft and more. Rental property insurance will also extend to the detached buildings as like a garage or shed.

Rental property insurance will also cover the landlords [personal items used to maintain the property such as lawnmowers, snow blowers, weed cutters, washers and dryers, alarm systems and more. Please check with one of our wonderful agents to see what you qualify for. 

Liability insurance coverage:

Someone may end up hurt or injured on your property and sue you for damages. If these costs were to come out of the landlords pocket it could end up being financially devastating. Rental property insurance can help to cover the cost of medical fees, legal costs, settlements and more. 

Loss of income insurance:

If your tenant is forced from the home due to a covered peril and is unable to occupy the property, rental property insurance may cover your lost rental income. 

What Does Sacramento California Rental Property Insurance Cover?

Your Sacramento California rental property insurance policy will cover the dwelling, the landlords personal items used to maintain the home, and lost rental income. The basics it covers are as follows:

• Dwelling Insurance Coverage: Helps protect the rental building itself due to damage by fire, lightning, wind, hail or other covered losses.
• Other Structures Coverage: Helps protect you against damages resulting from a covered loss to your rental unit’s detached garage, storage shed or fence.
• Personal Property Insurance Coverage: If you have lawn mowers, weed whackers, shovels or other tools onsite used to maintain your rental property, Sacramento California Rental Property Insurance may help cover this equipment if it’s damaged or stolen.
• Liability Insurance Coverage: If a tenant trips on the walkway to your rental property and a court determines that you failed to maintain the walkway, you could be held liable for your tenant’s medical, legal and other costs. Here your landlord liability coverage may help pay for those expenses.

What rental property insurance doesn’t cover

Hopefully above we gave you a in-depth enough answer to what rental property insurance does cover, now lets talk about everything it doesn’t cover. One of the primary things rental property insurance will not cover is the belongings of your tenants or their personal property. Your renters car, their valuables or jewelry, the furniture they have in the home, and basically everything else they own is not covered under your rental property insurance coverage. If they need coverage for these items it would be a good idea for them to look into renters insurance. Some landlords actually require renters insurance. 

Rental property insurance will not cover the repairs on a broken dishwasher, you are responsible for that. Same goes for a furnace and a few other items. 

What Sacramento California Rental Property Insurance Doesn’t Cover

Rental property insurance typically does not cover:

• Equipment Breakdown – If the furnace or dishwasher in breaks down, most likely you will have to pay out of pocket for any repairs.
• Property You Share – If you live in the property and rent out another part to a tenant, you’re typically not eligible for a landlord policy, as landlord policies are for only for “non-owner-occupied” property.
• Tenant’s Belongings – California landlord insurance does not cover your tenant’s personal possessions like furniture, computers. electronics, clothes, etc. Your tenants will need to purchase their own renter’s insurance policy to cover their belongings.

Extra Sacramento California Rental Property Insurance Insurance Coverage

You may want to add optional coverages to your CA landlord policy. Some of the more popular ones are:

• Vandalism & Burglary – You may want extra protection to repair vandalism damage or replace items stolen from your rental (like appliances). Also, if someone vandalizes the property, those damages typically aren’t covered by a traditional landlord policy unless you purchase an additional vandalism rider.
• Umbrella Policy – If you higher liability limits than the basic landlord policy offers, commercial umbrella can help. It is excess liability coverage that sits on top of your basic liability limit.
• Building Renovation – If you are you renovating your rental property, you can purchase special coverage to help protect it until it’s ready to be occupied.
• Building codes – If you’re repairing a part of your building after it’s been damaged, you might be legally required to upgrade items like wiring, piping or ventilation because your municipality building codes may have changed since your property was originally built.

How much is Sacramento California Rental Property Insurance?

The cost of rental property insurance can vary. There are many factors that will help your landlord insurance provider determine the rate you pay on your rental property insurance coverage. Below are some of those items:

• Location – The more dangerous your location is, for both natural and human risks, the higher premiums you will pay as there is a higher probability for claims.
• Building Size – The more square footage your property has, the more the premium will be.
• Deductible – The deductible is your out of pocket cost before your policy kick in. Lower deductible = higher premium, and higher deductible = lower premium.
• Security Precautions – Having a central fire alarm and security system can lower your premiums.
• Claims History – If you have made claims in the last 5 years your land lord insurance will cost more.

Rental Property Insurance Quote

If you’re interested in getting a free and custom rental property insurance quote or if you have additional questions regarding ;landlord insurance, please fell free to give one of our amazing agents a call at (916) 313 – 6100