A rental is not a home you live in, so it needs a landlord or dwelling policy rather than homeowners, and the markets that write rentals are not always the same ones that write owner-occupied homes. Admitted carriers write a lot of it; landlord programs and managing general agents write many of the rentals they don’t; surplus lines insurers take older, vacant, LLC-owned or wildfire-exposed properties; and the FAIR Plan is the fire backstop. What usually decides it is the building’s age and systems, its location, how it is rented, and the claims history.
Why rentals get declined
- Wildfire exposure. The same pullback that affects homeowners affects rentals, sometimes more.
- Older systems. Original wiring, older electrical panels, galvanized plumbing and aging roofs are frequent reasons a carrier says no.
- How it’s rented. Short-term and vacation rentals, rooms rented individually and student housing often fall outside a standard landlord program. Short-term rentals are their own market.
- Vacancy. A rental between tenants or under renovation may not qualify until it is occupied again.
- Ownership and size. Some programs limit LLC ownership, the number of properties per owner, or the number of units. Five or more units usually moves into commercial apartment building coverage.
- Claims. Prior water, liability or fire losses on the property or the owner.
The kinds of markets that write rentals
- Admitted carriersWrite landlord and dwelling fire (DP-1 and DP-3) policies on houses, condos and two-to-four unit buildings, with policies backed by the California Insurance Guarantee Association.
- Landlord programs and managing general agentsSpecialty underwriters built around rental property, often with broader appetite for LLC owners, multiple properties and renovations.
- Surplus lines (E&S) insurersTake rentals that admitted carriers decline because of age, condition, vacancy, location or loss history. California requires a diligent search of the admitted market first, and these policies are not backed by the guarantee association.
- Wholesale brokersReach many specialty carriers for larger or harder habitational risks. They are brokers, not insurance companies.
- The FAIR PlanWrites fire coverage on rental homes when nothing else will, paired with a DIC policy for the gaps.
What landlord underwriters look at
- The building: year built, construction, number of units, square footage and condition.
- Updates: roof, electrical, plumbing and heating, with the years they were done.
- Occupancy: long-term lease, month-to-month, furnished, short-term, or vacant now.
- Ownership: individual, trust or LLC, and how many properties you own.
- Location: wildfire, flood and crime exposure, and distance to fire protection.
- Extras: pools, trampolines, ADUs, and any unpermitted additions.
- Losses: the claims history on the property and on you as an owner.
A clean, specific submission with photos and update years moves faster and often gets better options than a bare address.
Markets I’m appointed with that write rentals
Examples only. Each market applies its own guidelines and none of them accepts every rental.
- SteadilyWrites landlord and dwelling policies, condos, DIC and renovations.
- AegisWrites rentals, vacant properties, DIC and mobile homes.
- KingA managing general agent whose programs include American Modern and KW Specialty dwelling and condo coverage, plus mobile homes.
- Green Shield RiskHas a Real Estate Investor program for rental and investment property, alongside builder’s risk.
- LightSpeedA wholesale market I reach through my First Connect network for surplus lines dwellings up to four units.
- Futuristic UnderwritersA nonadmitted market whose classes include habitational and lessor’s risk only.
- Bass Underwriters, Amwins and RPSWholesale brokers that reach many specialty carriers for larger and harder rental property.
Foremost, American Modern and Arrowhead are also on my list for landlord and dwelling fire. See the full list.
What a landlord policy should include
- DwellingThe building, written to its rebuild cost. A DP-3 is broader than a DP-1, which is a basic named-perils form.
- Loss of rentsRent you lose while the property is being repaired after a covered loss.
- Premises liabilityInjury to tenants and visitors caused by the property. It is often optional on a dwelling form, and it shouldn’t be.
- Your property on siteAppliances and furnishings you supply. Tenants’ belongings are theirs to insure.
Tenants should carry their own renters insurance, and many landlords require it in the lease. Landlord insurance.
LLC-owned rentals and multiple properties
If the property is deeded to an LLC, the LLC should be the named insured on the policy, and a policy in your personal name may not respond the way you expect. Some markets handle LLCs and portfolios well; others limit them. If you own several rentals, a single policy covering all of them can be simpler than a stack of separate ones, and an umbrella above the liability is worth pricing. More on LLC rentals.
Common questions
Who insures rental properties in California?
Admitted carriers write many landlord and dwelling fire policies. Rentals they decline are often written by landlord programs, managing general agents and surplus lines insurers reached through wholesale brokers, with the FAIR Plan and a DIC policy as the backstop.
Why was my rental property declined?
Common reasons are wildfire exposure, older roofs, wiring or plumbing, short-term or room-by-room rental, vacancy, LLC or multi-property ownership limits, and prior claims. A decline by one company is about that company’s guidelines.
Can I use homeowners insurance on a rental?
Generally not. A homeowners policy assumes you live in the home. A rental needs a landlord or dwelling fire policy.
Does the FAIR Plan cover rental homes?
The FAIR Plan can write fire coverage on a rental when other markets won’t. It does not cover liability, theft or water damage, so a DIC policy usually goes alongside it.
What if my rental has five or more units?
Five or more units is usually written as a commercial apartment building policy rather than a dwelling policy, and a different set of markets applies.
General information about landlord and rental property insurance in California as of October 2026, not legal advice. The markets named are examples of markets I am appointed with, not a statement that any will accept a particular property. Coverage depends on underwriting and the terms, conditions and exclusions of the policy actually issued.