We’re often asked about insurance requirements, and we cannot stress enough how important it is for you to have landlord insurance when you’re renting out an Irvine property. You never know when there’s going to be a fire, flood, or major catastrophe at your property. 

Accidents, property damage, and natural disasters aside, you also need to protect yourself against liability.

Hopefully, you have a great insurance agent who can give your insurance policy a check-up every year. If you’re not working with an insurance agent for your landlord and property insurance, please talk to an Irvine property management company. We can give you some great referrals to some of the best agents we work with while we’re leasing and managing properties. 

How Does Landlord Insurance Work in Irvine?

Landlord insurance, in many ways, works the same way that any insurance policy works. You pay a premium and in exchange for that premium, certain events are covered financially. If a pipe bursts and floods your kitchen, the insurance policy you have will cover the necessary repairs and replacements. 

There’s sometimes confusion about whether there’s a difference between homeowner’s insurance and landlord insurance. 

There is a difference, and you need to make sure you have the right coverage. A general homeowner’s insurance policy won’t cover your property when you’re using it as a rental. 

Here’s the major difference: 

• A homeowner’s policy will cover your property and your contents as well as third party liability when you’re occupying the home. 
• A landlord policy covers the home, but not the contents. It also provides third party liability for the landlord and loss of rent. 

If you forget to change your insurance coverage, you could have some major problems. When you have a loss and you didn’t convert to a landlord policy, for example, you won’t get the loss of rent coverage that you need.  

Insurance Coverage when a Property is Vacant

Make sure you understand whether a vacant property is covered.

Many landlord policies have a 60-day vacancy cause, and some have one that’s only 30 days. If your rental property remains vacant after 60 or 30 days, you won’t be covered. So, if there’s a tree that falls onto your property on Day 62 of your vacancy, the damage to your roof may not be covered. You have to read your policy, and you have to ask questions to ensure you keep your coverage.  

Liability Coverage for Irvine Rental Property Owners

You need liability coverage to protect yourself against damages and lawsuits. 

Check the insurance policy you have to find out what kind of liability protection you have and what types of things may be prohibited at your rental property. For example, some policies will exclude dangerous dog breeds, above-ground swimming pools, and trampolines. 

Updating Your Irvine Insurance Policy

If you haven’t taken a look at your landlord policy in a few years, you might need an update. Your property is likely worth more now than it was five years ago. The policy amounts need to reflect that. If you only have $800,000 worth of coverage and your property is now worth a million dollars, you could come up short if there’s a fire and you need to rebuild. 

Always include your Irvine property management company as an additional insured. This will keep everyone on the same page and provided a united defense in the event that a tenant sues you. 

If you’d like to talk further about your insurance requirements and how a landlord policy works, please contact us at HCM Property Management. We’d be happy to provide additional resources.