Why Landlord Insurance is Disappearing and What You Can Do
Struggling to find landlord insurance in California? Learn about the current challenges, discover which companies are still offering policies, and explore strategies to protect your investment.
Landlords across California are facing an insurance nightmare. Finding a policy that provides adequate coverage without sky-high deductibles has become nearly impossible. Many of the biggest insurance providers have stopped writing new policies entirely, and those that remain are making it increasingly difficult to get coverage.
At Good Life Property Management, we recently helped a new client secure landlord insurance, but the process was far more challenging than it should have been. Most insurers weren’t offering policies in California, others had deductibles that made coverage unaffordable, and some refused to add the property management company as additionally insured.
If you’re struggling to secure coverage, schedule a call with us at (858) 207-4595. At Good Life Property Management, we help landlords navigate these market shifts, protect their properties, and stay ahead of changes.
Key takeaways
- Major insurers are leaving California as companies like State Farm, Liberty Mutual, and Travelers stop writing new landlord policies.
- Overregulation is driving insurers out since laws like Proposition 103 prevent them from adjusting rates based on actual risk.
- Some insurers still offer policies with stricter requirements, including Steadily, Bamboo Insurance, and Amica.
- The FAIR Plan is a costly last resort that provides basic fire coverage but comes with higher costs and limited protection.
- Landlords must act fast as insurance availability shrinks and rates continue to rise.
Table of Contents
- Why Is Landlord Insurance So Hard to Find in California
- How Proposition 103 Is Worsening the Crisis
- Which Companies Have Stopped Offering Landlord Insurance
- Which Companies Are Still Writing Landlord Policies
- The FAIR Plan: A Last Resort for Landlords
- What Should Landlords Do Now
- FAQs About Landlord Insurance in California
Why Is Landlord Insurance So Hard to Find in California?
The California insurance market is collapsing, and landlords are feeling the effects. What used to be a straightforward process—getting a rental property insured—has now turned into a frustrating maze of rejections, high deductibles, and non-renewals.
At the core of the issue is California’s strict regulation of the insurance industry, which has made it difficult for companies to adjust their pricing to reflect actual risk. The biggest factor? Proposition 103.
How Proposition 103 Is Worsening the Crisis
Passed in 1988, Proposition 103 was intended to protect consumers from excessive rate hikes. However, it has had serious unintended consequences that are now contributing to the insurance crisis.
1. Insurers Can’t Adjust Rates Based on Risk
- In most states, insurers can price policies based on future risk models that factor in climate change, wildfire threats, and rising construction costs.
- In California, they must use historical data, which doesn’t account for increasing risks—forcing companies to operate at a loss.
2. Bureaucracy Slows the Process
- Filing for a rate increase in California takes years, while in most states, insurers can adjust pricing in months.
- Meanwhile, wildfires and disasters have driven up claims, but insurers can’t raise rates to compensate—leading many to exit the market entirely.
3. Public Challenges Can Block Rate Adjustments
- Proposition 103 allows consumer groups to challenge insurance rate changes, leading to legal battles and delays.
- Instead of fighting for years to raise rates, many insurers are choosing to leave the state altogether.
The result? Fewer insurers, higher prices, and more landlords left scrambling for coverage.
Which Companies Have Stopped Offering Landlord Insurance?
Many major insurance companies have exited the California market in recent years, including:
- State Farm – Stopped writing new policies in California.
- Liberty Mutual – No longer offering home or landlord insurance in the state.
- Travelers, Geico, and American Family – No longer taking new business in California.
- Mercury Insurance – Requires bundling with auto coverage.
- Obie & Honeycomb – No longer offering policies for landlords.
- Lightspeed Insurance – Limited to fire, wind, and vandalism coverage only.
If your landlord insurance is up for renewal, act fast—these restrictions could become even tighter in the coming months.
Which Companies Are Still Writing Landlord Policies?
If you’re struggling to secure coverage, a few providers are still issuing policies, though with stricter requirements:
- Steadily – Offers reasonable deductibles and allows property managers to be listed as additionally insured.
- Bamboo Insurance – Recently partnered with Delos Insurance to continue writing new policies.
- AIS & California FAIR Plan – Requires property photos and longer application processes.
- Amica – Selectively insures properties based on internal risk assessment and requires insuring your primary residence with them.
- Insurify – Covers condos but has high deductibles ($5,000 minimum) and mixed reviews.
For additional insights, check out our guide to landlord insurance.
The FAIR Plan: A Last Resort for Landlords
If traditional insurers won’t cover your rental, the California FAIR Plan might be your only option.
- What is it? A state-backed program offering basic fire insurance for high-risk properties.
- Limitations:
- More expensive than standard policies.
- Less comprehensive coverage—often requiring a separate liability policy.
- Longer application process compared to traditional insurers.
While the FAIR Plan isn’t ideal, it may be necessary for landlords in wildfire-prone areas.
What Should Landlords Do Now?
- Get Quotes from Multiple Providers – Don’t wait until your policy expires to start looking.
- Act Quickly – Insurance companies are constantly adjusting their offerings. A policy available today may not be tomorrow.
- Explore the FAIR Plan if Needed – While not ideal, it can provide temporary coverage while you look for better options.
- Stay Informed – Keep an eye on state regulations and insurance changes to avoid surprises.
We’re Here to Help You Secure Insurance Coverage
Finding landlord insurance in California is harder than ever, but you still have options. If you need help navigating the market, schedule a call to speak with one of our Good Life experts.
At Good Life Property Management, we believe that life should be enjoyed, not spent sweating the small stuff. That’s why we set out on a mission to make property management easy. We care about you, your property, and your tenant. And we do it all, so you can Live the Good Life.
FAQs About Landlord Insurance in California
Why are major insurers reducing coverage in California?
Increased risks from natural disasters like wildfires and regulatory limitations on adjusting premiums have led some insurers to scale back their presence in the state.
What is the California FAIR Plan?
The California FAIR Plan is a state-run program providing basic fire insurance for properties unable to secure coverage through traditional insurers.
How can landlords improve their chances of obtaining insurance?
Implementing risk mitigation strategies, maintaining open communication with insurers, and consulting with property management experts can enhance insurability.
Are there still insurers offering landlord coverage in California?
Yes, companies like Steadily, Lemonade Home, Mercury Insurance, Farmers Insurance, Allstate, and Safeco Insurance continue to offer landlord insurance in California.
What should landlords consider when choosing an insurance provider?
Evaluating coverage options, premiums, deductibles, and the insurer’s financial stability are crucial factors in selecting the right insurance provider.
Steve Welty
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