Rental Property Insurance California: How Much is Sacramento Landlord Insurance?

Purchasing rental property can as fun and exciting as it is challenging. It’s a big investment that may pay off big in the end. Because of this having landlord insurance is just that much more important. Rental property insurance is designed to protect landlords from fire, severe weather, smoke and other covered perils. Landlord insurance will safeguard the structure of the home, the landlords property inside the home used to maintain the house, and lost rental income. It also has liability protection incase someone is hurt or injured on your property.

Landlord Insurance Basics 

Rental property insurance will cover you in two basic coverage types:

1. Physical structures
2. Liability protection

Physical structures coverages helps to protect the dwelling in the event of a loss. This damage usually includes fire, smoke, hail, storms or windstorms. The liability portion of the coverage will cover medical bills and legal costs if someone is hurt or injured on the property. 

The main areas of coverage you will want to consider when looking for a great landlord insurance policy are:

Dwelling insurance:

This portion of your coverage will protect the actual home itself. The most basic policy is a DP-3, often called a ‘special form / open peril policy’ it covers most of all risks such as wind and lightning with claims normally settled at the full replacement cost versus cash value.

Additional Structures insurance:

This coverage may also be obtained to pay for repairs to structures on the rental premises that are detached from the main building, such as a free standing garage, storage shed, or fence.

Personal Property insurance:

A rental property insurance policy will cover personal property that is used to maintain the rental property, such as power tools, a lawnmower or snow blower, and pressure washer used to clean sidewalks and siding.  

Loss of income:

If the rental home is damaged and uninhabitable, a landlord policy may cover loss of income. The amount of the loss of use or income is generally capped at the annual gross rent collected. 

How Much Does Rental Property Insurance Cost

Landlord insurance will vary from insurance provider to insurance provide and state to state. There are a lot of variables that will help a landlord insurance provider determine what your rate will be. On average landlord insurance is about 25% more than your average homeowners insurance policy.

The average cost of rental property insurance in 2021 was about $1,650 annually. This is based off a national average for a very basic amount of coverage. 

With landlord insurance its always best to get a custom quote from an independent agent that’s local to you. They know the area you’re in and can help you best to navigate through the different policies available. 

We suggest you speak to Eugene C Yates Insurance Agency if you’re in California. They have done outstanding business for the Golden State homeowners since 1946. Reputation and quality service from an agency you can trust. 

Call them today at 916 313 6100