When you switch your home from “owner-occupied” to “rental,” your insurance needs change.
A regular homeowner’s policy is designed for you living in the home. Once a tenant moves in, you’re taking on a different kind of risk: you’re now a housing provider and landlord.
In this guide, we’ll walk through the basics of landlord insurance for San Diego and North County owners—what it typically covers, what it usually doesn’t, and smart questions to ask your insurance agent before you list your home for rent.
1. Homeowners vs. Landlord Insurance: What’s the Difference?
- Homeowners insurance (owner-occupied)
Designed for properties where you live in the home. It usually covers:- The structure (dwelling)
- Your personal belongings
- Personal liability
- Certain additional living expenses if you are displaced
- Landlord (rental) insurance
Designed for properties rented to others. It usually emphasizes:- Dwelling coverage (structure)
- Landlord liability (if a tenant or guest is hurt on the property and you’re found responsible)
- Options like loss of rental income if the home becomes uninhabitable after a covered claim
2. Core Parts of a Typical Landlord Policy
- Dwelling coverage
- Covers the physical structure: walls, roof, floors, built-in fixtures.
- You choose a coverage limit high enough to rebuild/repair if there’s a major loss.
- Landlord liability coverage
- Helps protect you if a tenant or guest claims you were responsible for an injury or certain types of property damage.
- Example: a broken stair you didn’t fix leads to a fall.
- Loss of rental income (loss of use)
- If a covered event (like a fire) makes the home uninhabitable, this can help replace lost rent while it’s being repaired.
- Important for cash flow stability.
3. What Landlord Insurance Typically Doesn’t Cover
To avoid over-promising, keep this high-level:
- Normal wear and tear
Old carpet, aging roof, or minor cosmetic dings aren’t “claims.” - Tenant’s personal belongings
Tenants need their own renters insurance. Your policy usually doesn’t cover their furniture, electronics, etc. - Intentional damage
Policies often exclude intentional acts. Coverage for vandalism can vary; owners should ask how their insurer handles this. - Business or short-term rental use
If the owner tries Airbnb/short-term stays, coverage may be different or require a separate endorsement or policy.
4. Extra Coverages San Diego Landlords Sometimes Consider
- Higher liability limits if they have significant assets to protect
- Umbrella policy for additional liability protection
- Coverage for detached structures (garages, storage sheds)
- Equipment breakdown for certain systems
- Water backup endorsements where available
5. How Landlord Insurance Fits Into Your Overall Numbers
- Insurance is one line item in your rental budget.
- It affects monthly cash flow and overall risk management.
- Encourage them to:
- Get quotes from their current provider and maybe one other
- Compare landlord policy cost against their projected rent and expenses
- Factor it into rent-pricing decisions and their “keep vs sell” analysis
6. How Palomar Oaks Can Help
“We’re not your insurance agent, but we are your partner in making sure your rental actually works in real life.”
- Remind owners to update their policy before tenants move in.
- Palomar Oaks can help them think through:
- Typical maintenance and risk areas for their type of property
- How coverage, reserves, and management work together
- Invite them to:
- Request a Free Rent Analysis
- Talk through their first-time landlord questions
