Landlord insurance · California
Landlord insurance for rental homes and small buildings
A home you rent out needs a landlord (dwelling) policy, not a homeowners policy. It covers the building, the rent you lose while it is repaired after a covered loss, and your liability as the owner.
- DP-1, DP-2, DP-3The three dwelling policy forms for rentals
- Lost rentFair rental value coverage pays it after a covered loss
- No liabilityon the FAIR Plan: add a DIC or liability policy
Dwelling policy forms
| Form | What it covers |
|---|---|
| DP-1 (basic) | The building for a short list of named causes such as fire, lightning and windstorm |
| DP-2 (broad) | More named causes of loss than DP-1 |
| DP-3 (special) | The building for every cause of loss except those excluded |
What a landlord policy covers
Usually covered
- The rental building, for the causes in your policy form
- Detached structures such as a garage
- Rent you lose while the unit can't be lived in after a covered loss (fair rental value), if included
- Your liability for injuries to tenants or guests caused by your negligence, if included
- Your own items in the rental, such as appliances or furniture you provide
Usually not covered
- Your tenants' belongings (their renters policy)
- Earthquake
- Flood
- Wear and tear, and maintenance
- Liability, theft and water damage on a FAIR Plan policy, unless you add a DIC
Your tenants' insurance
Tenants' belongings belong on their own renters policy, and their renters liability coverage can respond if a tenant accidentally damages the building. Encourage tenants to carry renters insurance, and point them to the renters insurance guide.
Hard-to-insure rentals
If regular insurers decline a rental, the California FAIR Plan offers a limited fire policy. Its dwelling policy covers other structures up to 10% of the dwelling limit and excludes theft, flood, sewer backup and earth movement. It includes no liability, so add a Difference in Conditions (DIC) or a separate liability policy.
Since 2026, wildfire non-renewal moratoriums can also protect some commercial policies used mainly for housing, such as apartment complexes and homeowners associations.
What to have ready
- Each property's address, units and year built
- Roof age, and updates to wiring, plumbing and heating
- Whether you live on the property
- Current leases and rents
- Your current policy and claims in the last five years
Common questions
Can I keep my homeowners policy after I move out and rent the house?
Usually not. A homeowners policy is written for a home you live in. Tell your insurer before you rent it out and move to a landlord (dwelling) policy, or a claim may be denied.
Does my landlord policy cover my tenants' belongings?
No. Tenants need their own renters policy for their things and their liability.
Does the FAIR Plan cover landlord liability?
No. The FAIR Plan dwelling policy has no liability coverage. You need a Difference in Conditions policy or a separate liability policy.
What is fair rental value coverage?
It pays the rent you lose while a rental can't be lived in after a covered loss, such as a fire. It is not always included, so check your declarations page.
Carriers Billy works with
Which carrier fits depends on the property or business and the carrier's underwriting. Logos are trademarks of their owners.
Sources
Checked October 25, 2026. Laws, programs and rates change, so confirm anything important with the source or with Billy.
- NAIC: insurance definitions, policy forms (PDF) (opens in a new tab)
- CDI: Residential Property Insurance guide (homeowners, condo, renters) (opens in a new tab)
- California FAIR Plan: dwelling policy (opens in a new tab)
- California FAIR Plan: Difference in Conditions (DIC) (opens in a new tab)
- CDI: wildfire moratorium announcement, including commercial housing policies (2026) (opens in a new tab)