Landlord insurance not all policies are created equal. Insurance is one of those things property owners often don’t think about—until they absolutely have to. And when that moment comes, many owners are shocked to learn that their policy doesn’t cover what they assumed it would.
At FBS Property Management, we regularly encounter insurance gaps that create unnecessary financial exposure for owners. The reality is simple: not all insurance policies are equal, and when it comes to rental properties, you truly get what you pay for.
Homeowner Insurance vs. Landlord Insurance
One of the most common issues we see is owners carrying a standard homeowner’s insurance policy on a rental property. Homeowner policies are designed for owner-occupied homes—not rentals—and often exclude or severely limit coverage once a property is tenant-occupied.
A proper landlord insurance policy typically includes:
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Coverage for the dwelling
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Liability protection
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Loss of rental income (in some cases)
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Optional coverage for vandalism or malicious damage
Without the correct policy, claims may be denied outright.
Commonly Missed Coverage: Flood Insurance
Many owners assume flood insurance is only necessary if a property is located in a designated flood zone. That’s not true. Flooding can occur due to:
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Heavy rain
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Storm drain backups
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Improper grading
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Neighboring property runoff
- Mold
Standard landlord policies do not cover flood damage. Separate flood insurance is required, regardless of flood zone designation. We’ve seen owners face major repairs that could have been avoided with proper coverage.
The Insurance Cost Reality
Insurance premiums have increased significantly in California due to wildfire risk, water damage claims, and carrier pullback. While higher premiums are frustrating, opting for the cheapest policy often leads to:
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Higher deductibles
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Narrow coverage
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More exclusions
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Slower or denied claims
Insurance is not where cutting corners pays off.
Why This Matters to Owners
When insurance falls short, owners are left paying out of pocket for:
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Repairs
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Legal costs
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Temporary housing disputes
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Lost rent
At FBS, we can help coordinate claims—but we cannot change policy limitations after a loss occurs.
The Bottom Line
Insurance should be viewed as risk management, not just a line item expense. A quality landlord policy protects your investment, your income, and your peace of mind. If you’re unsure what your policy actually covers, now is the time to review it—not after something goes wrong.
