Landlord Insurance in
Irvine, CA

Do I need landlord insurance?

As a landlord, it's important to protect your investment and ensure that you are financially covered in the event of any unforeseen circumstances. One way to do this is by purchasing a landlord insurance policy.

But is landlord insurance required? It depends. Should you get it? Yes.

93% of American homeowners carry property insurance for their home. If you have a mortgage on your property, your lender will likely require you to carry some form of homeowner's insurance to protect their interests along with yours. And while most homeowners are aware that they should carry homeowner's insurance, many property owners don't realize that they need to change their insurance policy if they start to use their home as a rental property. Most insurance companies actually require you to notify them if you are renting your property in order to continue receiving insurance coverage for your home.

What does landlord insurance cover?

Landlord insurance is a type of home insurance policy specifically designed for landlords who are renting out their properties. It provides coverage for a wide range of potential risks and liabilities, including:

If you are relying on rental income to cover the costs of the property, you should strongly consider landlord insurance to protect your financial investment. Note that landlord insurance is different than renter's insurance, which typically protects the tenant. Another reminder is that parametric products, which cover natural disasters like earthquake or flood insurance, may need to be purchased separately.

How much is landlord insurance in Irvine?

Landlord insurance typically costs about 15-20% more than a similar homeowners insurance policy. Insurance companies typically charge more for landlord insurance for two key reasons: (1) tenants (even good ones!) don't take care of the home the way a homeowner does and (2) landlord policies typically carry larger liability limits. Larger liability limits help protect landlords from lawsuits and other damages if a tenant or guest is injured on the property.

Your insurance premium will depend on a variety of factors, such as your property's square footage, location, and age. It will also depend on your selected deductible or additional coverages. The average landlord insurance premium in Irvine, CA is $1,640.

How much coverage do I need?

Each landlord needs a different amount of coverage based on your property's square footage, quality of finishes, and your personal risk profile.

Currently in Irvine, CA, we typically recommend purchasing dwelling coverage ranging from $200  to $500 per square foot.

If you have premium interior and exterior finishes (and want to make sure you're well-covered), we suggest calculating your required coverage by multiplying your square footage by $500. If you have a property with simpler finishes (or are willing to cover more unforeseen damages out of pocket), we recommend multiplying your square footage by $200.

We also recommend increasing your liability protection when starting to rent out your home. When tenants and guests are more frequently passing through your home, you want to ensure you build in larger liability so you have holistic property coverage.