Wildfire-exposed ZIP codes, record-high rebuild costs, and insurer withdrawals continue to reshape California landlord insurance. New state rules taking effect between late 2024 and 2025 require major carriers to write more business in high-risk wildfire zones—while allowing them to price using forward-looking catastrophe models. Premiums are climbing, but with the right guidance and available discounts, you can still protect your property at a reasonable cost.
What Does Landlord Insurance Cover?
Dwelling & Other Structures
Covers fire, lightning, wind, hail, vandalism, and most sudden or accidental losses. Many carriers now default to actual cash value (ACV), so be sure to opt into extended or guaranteed replacement cost—especially if your property sits in a Very-High Fire Hazard Severity Zone.
Loss of Rental Income
Pays for lost rents while your unit is uninhabitable after a covered claim. The FAIR Plan still caps this at 20% of the dwelling limit, so pairing it with a Difference in Conditions (DIC) wrap ensures complete protection.
Landlord Liability
Covers medical bills, legal defense, and judgments for tenant or guest injuries, wrongful eviction, habitability disputes, and more. Jury verdicts on habitability now often exceed $1 million, making a $1 million base limit (plus a $2–5 million umbrella for multi-unit portfolios) essential.
Popular Endorsements and Add-Ons
- Tenant damage coverage
- Equipment breakdown for HVAC or appliances
- Ordinance & Law (code-upgrade costs)
- Flood and earthquake endorsements
- Wildfire-mitigation discount riders under California’s Safer from Wildfires framework
Major 2025 Regulatory Updates
California’s new insurance reform aims to stabilize availability in wildfire-prone regions:
- 85% Writing Rule: Large insurers must write at least 85% of their pre-2022 policy volume in high- and very-high-risk ZIP codes or face rate-filing delays.
- Catastrophe Model Approval: Insurers may now use forward-looking wildfire models that account for property-specific mitigation steps, potentially earning homeowners 10–20% savings.
- One-Year Non-Renewal Moratorium: If your property falls within a declared 2024–2025 wildfire perimeter, carriers cannot cancel or non-renew your policy for 12 months.
Landlord Insurance Requirements in California
While there is no state law requiring landlords to carry insurance, mortgage lenders typically mandate it for financed properties. Many property management companies also require minimum coverage limits. Even if your property is paid off, skipping coverage exposes your assets to lawsuits and rebuild costs that could easily exceed your savings.
Having landlord insurance in California ensures not only protection against property loss but also liability coverage for accidents and tenant disputes—critical in a high-litigation state.
How Much Does Landlord Insurance Cost in 2025?
Average premiums for rental property insurance in California vary by region and risk tier:
| 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 factors include wildfire score, roof age, construction type, tenant profile, and claims history. Short-term or student rentals generally carry higher premiums.
Who Offers Landlord Insurance in California?
Top-Rated Admitted Carriers
Farmers, Travelers, Liberty Mutual, Safeco, and State Farm all continue to offer California landlord insurance, with varying underwriting appetites depending on wildfire exposure and rebuild cost.
Low-Cost Options
Steadily and Obie provide tech-driven quote platforms for single-family and small multi-unit rentals, averaging around $75 per month for standard risk properties. Mercury remains a competitive option for gated communities and homes with recent roofs.
High-Risk / Wildfire-Exposed Properties
The California FAIR Plan paired with a DIC wrap remains the go-to solution for high-risk ZIP codes, supplemented by E&S carriers like ICAT, Scottsdale, and Lexington for luxury or remote rentals.
For investors seeking the cheapest landlord insurance California offers, comparing three or more quotes remains the most reliable way to find savings—pricing can differ by up to 40% for identical coverage.
Specialized Landlord Coverage Options
Condo Landlord Insurance California (HO-6)
Provides coverage for interior finishes, appliances, and liability. Premiums generally range from $350–$600 per year for coastal condos and $200–$400 inland.
Short-Term & Vacation Rentals
Standard landlord forms exclude nightly or 30-day rentals. For these, use a vacation-rental endorsement or carriers like Foremost or Proper.
Apartment & Multifamily (5+ units)
Larger properties fall under commercial habitational packages, typically costing 0.4%–0.8% of replacement value, with additional liability layers.
High-Value Portfolios
Carriers like Chubb, PURE, and AIG Private Client specialize in high-value California landlord policies with higher limits and wildfire defense consultations.
How to Maintain Affordable Coverage in 2025
Despite rising rates, you can still manage costs by maintaining defensible space, upgrading roofing and vents, bundling multiple properties, and confirming all wildfire-mitigation steps are documented with your carrier. Many insurers are now required to credit verified mitigation actions, making this a practical way to save.
Quick Action Checklist Before Renewal Season
- Update rebuild costs to reflect 2025 contractor rates.
- Photograph and document wildfire-hardening upgrades.
- Collect tenant renters (HO-4) declarations for your records.
- Shop multiline bundles 60 days before renewal for savings.
- Add umbrella coverage if your property equity exceeds $500,000.
California Landlord Insurance FAQ
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.
Corey Elsasser
