How to Save Money on Sacramento California Landlord Insurance

You may own a condo in West Sacramento or a duplex in East Sacramento that you rent out to college students. You may even have a home in Midtown that you rent out to young professionals. No matter what type of property you have or where it’s located in the Golden States capital, if you’re planning on renting out your property to tenants it may be a great idea to safeguard your investment with a landlord insurance policy from Eugene C Yates Insurance Agency.

As an independent insurance agency we are able to shop around for the best rate and coverage available to the market. When you are able to gather multiple quotes from the very best landlord insurance providers, it’s simple to do apple to apple comparisons to find the best option. 

To get started today or if you’re interested in what landlord insurance discounts you qualify for are, please call one of our amazing agents at (916) 313 – 6100

What Is Landlord Insurance and How Much Does It Cost in California?

Let’s start with the basics. What is landlord insurance, what does it cover & not cover and how much does it cost?

Landlord insurance also known as rental property insurance is a form of home insurance and very similar to your standard homeowners insurance policy. Rental property insurance coverage is designed to meet the needs of property owners who may want to lease or rent their homes to tenants.

As a landlord you take on added risks that are not the norm when it’s your primary residence. Due to these added risks landlord insurance is usually about 15%-25% more than your standard homeowners insurance policy. The national average cost for landlord insurance is around $1,100 annually. Please keep in mind this is only an average and each policy will be priced individually.

Rental property insurance rates are based on a number of factors. There are some features you can add to the home to cut premium costs and there are other special features that may increase the cost such as a pool or a very large property. Below are a few of the factors that may come in to play when it comes to calculating the cost of your landlord insurance policy:

• The type of property you own as well as its age, value, and size

• The crime rate and weather risks where the property is located

• The amount of rent you expect to collect each month

• The number of tenants you have or expect to have occupying the home

Is Landlord Insurance Required in Sacramento California?

Rental property insurance is not a state requirement. Although, if you carry a mortgage on the home the mortgage lender may require that you have homeowners insurance coverage before they fund your home loan. If you’re interested if you only need homeowners insurance or if it’s necessary to carry landlord insurance below are are few ways for you to find out:

• If you have occasional tenants in your home for short-term rentals, such as if you lease it out once or twice a year while you are on vacation or you rent a bedroom out on a short-term basis, you may be able to get sufficient coverage through an endorsement to your homeowners insurance policy.

• If you have tenants occupying your property for at least 30 continuous days, most homeowners insurance companies will require you to carry landlord insurance instead of homeowners insurance.

• If you frequently rent out your property to short-term tenants, such as if you have it listed on Airbnb or VRBO, or if you own an apartment building, your property will be considered a business, and you will need to cover it with business insurance.

What Types of Property Damage Does Sacramento California Landlord Insurance Cover You For?

A standard landlord insurance policy will cover you in two parts structural or dwelling coverage and personal property or contents coverage.

If we were to look at a standard homeowners insurance policy we would notice that the coverage amount is usually set at 75% of the dwelling coverage. With your landlord insurance policy your contents coverage should usually come in a lot lower due to your tenants covering their own belongings with a renters insurance policy. 

Your landlord insurance is designed to cover the cost to repair, replace, or rebuild your property if it is damaged by a covered event.

• Severe weather events: This can include hazards like thunderstorms, cyclones, windstorms, hailstorms, and even the occasional tornado.

• Fires: This can include accidental fires, fires started by lightning, and, in some cases, wildfires. (Renters insurance excludes wildfire coverage in some parts of the state.)

• Property crimes: This can include theft, vandalism, and arson.

• Accidental damage caused by tenants: This includes coverage for damage your tenants might cause, such as while they are moving in and out of the home.

What Forms of Property Damage Aren’t Covered by Your Sacramento California Landlord Insurance Policy?

Just like with many other insurance products, not everything will be covered under a standard policy. The good news is you can always purchase additional coverage to protect yourself from added risks. Below are a few examples of what may not be included in your standard landlord insurance policy:

• Intentional damage caused by tenants

• Normal wear and tear

• Wildfire damage (in some parts of California)

• Flood damage

• Earthquake damage

Why Do Sacramento California Landlords Need General Liability Insurance?

Landlord liability insurance is a common feature in most landlord insurance policies. It’s coverage in place to cover items such as legal fees, court costs, mediation expenses, settlements, medical fees and more.

For example if one of your tenants or guests is hurt or injured on your property the liability portion of your coverage may pick up the legal and medical fees involved in the claim. You will always have the opportunity to increase your coverage amounts by purchasing umbrella insurance. 

What Else Can Sacramento California Landlord Insurance Cover?

Most rental property insurance providers will offer a few different coverage options. If you want to increase coverage in your policy you may want to consider the following:

• Non-occupied dwelling coverage

• Building code coverage

• Guaranteed income coverage

Sacramento California Landlords Save Money With Rental Property Insurance Discounts

What are landlord insurance discounts?

Rental property insurance discounts are ways for landlords to reduce premium payments on their landlord insurance. Please keep in mind not all discounts are spelled out in your policy. There are also some discounts you will qualify for automatically that will be applied to your policy, sometimes without you even knowing it. 

Landlord Insurance Discount Options

Not all landlord insurance providers will have the same discounts available so it’s always best to speak to one of our wonderful agents first to see who has what discounts and who doesn’t offer certain benefits and ways to save money. The four major types of landlord insurance discounts are broken down into the following:

• Safety discounts

• Bundling discounts

• Group discounts

• Loyalty discounts

Landlord Insurance Quote

If you have additional question about saving money on landlord insurance or would like a free rental property insurance quote, please give us a call today at (916) 313 – 6100