Why this matters: Wildfire-exposed ZIP codes, record-high rebuild costs, and insurer withdrawals continue to reshape California’s rental market. New rules that take effect between late-2024 and 2025 force major carriers to write more business in high-risk areas—but also allow them to price with forward-looking catastrophe models. Premiums are climbing, yet fresh discounts and coverage work-arounds can still keep you protected at a reasonable cost.

1 | What Does a California Landlord Policy Cover in 2025?

Dwelling & Other Structures

Covers: Fire, lightning, wind, hail, vandalism and most sudden/accidental losses.
2025 tip: Many insurers now default to actual-cash-value (ACV). Opt-in to extended or guaranteed replacement-cost, especially if your rental sits in a “Very-High Fire Hazard Severity Zone.”

Loss of Rental Income

Covers: Lost rents while the unit is uninhabitable after a covered claim.
2025 tip: The FAIR Plan still caps this at 20 % of the dwelling limit; pair it with a DIC wrap for full protection.

Landlord Liability

Covers: Medical bills, legal defense and judgments for tenant or guest injuries, wrongful eviction, habitability claims, dog bites and more.
2025 tip: Jury verdicts on mold and habitability now regularly exceed $1 million. Carry at least $1 million per occurrence and consider a $2–5 million umbrella for multi-unit portfolios.

Popular Endorsements (Add-Ons)

Tenant damage
Equipment breakdown (HVAC, appliances)
Ordinance & Law (code-upgrade costs)
Flood & Earthquake – see earthquake FAQ
Wildfire-mitigation discount riders under the state’s Safer from Wildfires framework

2 | Major 2024-25 Regulatory Changes

85 % Writing Rule (Jan 2025): Large insurers must write at least 85 % of their pre-2022 policy volume in high- and very-high-risk wildfire ZIP codes—or face rate-filing delays.
Catastrophe-Model Approval (Nov 2024): Carriers may use forward-looking wildfire models and credit homeowners for mitigation upgrades (10–20 % savings possible).
One-Year Non-Renewal Moratorium: If your property lies within a declared 2024-25 wildfire perimeter, insurers cannot cancel or non-renew you for wildfire risk for 12 months.

3 | Is Landlord Insurance Required in California?

No state statute forces you to buy it. However, your mortgage lender will require landlord (or “fire”) coverage, and many property-management contracts mandate minimum limits. Even if you own the home free and clear, going bare puts every other asset you own at risk of lawsuits.

4 | How Much Does Landlord Insurance Cost in 2025?

Scenario	Annual Premium (2025)	Notes
Statewide average SFR (3 bed / 2 bath)	$900 – $1,200	Lowest wildfire tiers
Median California rental	≈ $1,700	Blended suburban + coastal risk
Very-High Fire Hazard ZIPs	$2,000 – $3,500+	Often requires FAIR Plan + DIC wrap
High-value homes (>$1 M rebuild)	0.3 % – 0.6 % of insured value	$3,000+ typical

Key cost drivers: wildfire score, roof age, vacancy rate, tenant type (short-term & student rentals run highest), construction class, and your claims history.

5 | Who Offers the Best & Cheapest Landlord Insurance in 2025?

Top-Rated Admitted Carriers

Farmers – broad special-form on dwellings up to four units
Travelers – flexible deductibles and optional equipment-breakdown
Liberty Mutual / Safeco – strong package discounts
State Farm – remains price-competitive after its 2025 rate re-filing pause

Consistently Low-Cost Options

Steadily – tech-driven MGA, fast quotes for SFRs & small multis
Obie – average CA premium ≈ $75/mo on standard risk homes
Mercury – discounts for gated communities and new roofs

High-Risk / Wildfire-Exposed Homes

California FAIR Plan + DIC (through independent brokers)
ICAT, E&S carriers (Scottsdale, Lexington) for large or remote properties

Pro tip: Always get at least three quotes—pricing can vary 30–40 % for identical coverage.

6 | Special Cases & Add-Ons

Condo Landlord Insurance (HO-6)

Insures interior build-outs, appliances and liability; premiums run $350–$600/yr for a coastal condo and $200–$400/yr inland.

Short-Term & Vacation Rentals

Most standard forms exclude nightly or 30-day stays. Use a commercial vacation-rental endorsement or carriers like Foremost/Proper that specialize in STRs.

Apartment & Multifamily (5+ units)

Rated under commercial fire or habitational packages; expect premiums of 0.4 % – 0.8 % of replacement value plus extra liability.

High-Value Properties (>$1 M TIV)

Chubb, PURE and AIG Private Client offer higher limits, wildfire-defensible-space consulting and loss-prevention services.

7 | Renters Insurance Rules in California

State law: Renters insurance is not mandatory, but landlords may require it in the lease (§ 1940.4 CC).
Typical cost: $15-$22 per month for $30k property / $100k liability.
Earthquake add-on: California Earthquake Authority renters policies start around $35 per year with no deductible on “Loss of Use.”

8 | How to Become—or Stay—an Insured Landlord in 2025

Harden the property: 5-foot ember-free zone, Class-A or metal roof, ember-resistant vents, dual-pane windows.
Update dwelling limit annually—material inflation averaged 14 % in 2024.
Set liability at $1 million; add umbrella if equity > $500k.
Require tenant HO-4 with at least $100k liability; verify annually.
Shop 60-90 days ahead; bundled multiline quotes often save 10-15 %.

9 | California Landlord Insurance FAQ (2025)

How much is landlord insurance in California?

Plan on $900 – $1,200 per year for a low-risk single-family rental, about $1,700 statewide median, and $2,000 + in wildfire-exposed ZIPs.

Is landlord insurance required in California?

Not by state law, but virtually every lender and many property-management firms require it. Going without also leaves you personally liable for lawsuits.

Who offers landlord insurance in California?

Major carriers include Farmers, Travelers, Liberty Mutual, AIG, State Farm and CSAA; tech MGAs like Steadily and Obie provide quick quotes. The FAIR Plan is the backstop for very-high-risk areas.

What’s the cheapest landlord insurance company in 2025?

Quotes vary, but Steadily, Mercury and State Farm currently deliver some of the lowest premiums on standard-risk homes.

Can a landlord require renters insurance in California?

Yes—Civil Code § 1940.4 explicitly permits it. Most landlords mandate at least $100k liability coverage.

Does renters insurance cover earthquakes?

Standard HO-4 does not. You or your tenant can add a low-cost California Earthquake Authority rider (~$35/yr) to cover personal property and alternative living expenses.

How are premiums calculated for high-value or disaster-prone properties?

Insurers apply wildfire/flood scores, roof age, mitigation credits and loss history. Expect rates of 0.3 %-0.6 % of replacement value for $1 M+ homes in high-risk zones.

10 | Quick Action Checklist (2025 Renewal Season)

Update rebuild cost based on 2025 contractor estimates.
Photograph and document all wildfire-hardening upgrades.
Collect tenant HO-4 declarations for your files.
Shop multiline bundles 60 days before renewal.
Add umbrella or boost liability if property equity > $500k.

Sources & Further Reading

Corey Elsasser

Senior Commercial Lines Account Manager

Corey Elsasser is a Senior Commercial Lines Account Manager at Inszone Insurance Services. He holds a Bachelor of Arts degree in Communications from Cal State University, Fullerton. Corey joined the Inszone team in 2019 after being drawn to the insurance industry as a result of his extensive experience in customer service.

He uses his Communications degree on a daily basis to develop strong working relationships with those in need of personal insurance. His extensive background in organized sports has created an incredibly strong work ethic, which allows him to deliver the highest level of customer service.

In his time off, Corey enjoys snowboarding, the beach, and spending time with family.

[email protected]

916-842-3016

Landlord Insurance in California: 2025 Guide