Real Estate Investor Insurance
Renewal went up? Carrier dropped you? Just closed on a property and need coverage? We hear these from Bay Area landlords every week — and as an independent agency, we have the carrier options to actually solve them.
Renewal Went Up. Carrier Dropped You. Just Bought a Property. We Hear It All.
“My renewal went up and I don’t know why.”
California’s property insurance market has been volatile. Carriers are re-underwriting entire books of business, raising rates across the board, and in some cases exiting markets entirely. If your renewal came in significantly higher and your agent can’t explain why or offer alternatives — that’s a problem we can solve. As an independent agency, we shop across multiple A-rated carriers to find the best combination of coverage and price for your property.
“My carrier dropped me or won’t renew.”
This is happening more and more in California. Carriers tightening appetite, non-renewing properties in certain zip codes, pulling out of habitational altogether. If you’ve been dropped, you’re not out of options — but you need an agent with access to multiple markets, including specialty carriers that write risks others won’t touch.
“I just bought a property and need coverage.”
Congratulations — and welcome to the part of closing that nobody explains well. Your lender needs proof of coverage, you need the right limits, and the coverage needs to actually match the property type. A duplex in the Sunset is different from a 12-unit in Daly City. We’ll walk you through what you actually need and match you with the right carrier.
All three paths lead to the same place: an independent agency that has options and will actually explain what you’re buying.
Coverage for Every Type of Investment Property
5+ Unit Commercial Habitational
Apartment buildings, multi-unit complexes, and larger properties go through carrier Small Business Units that specialize in commercial habitational. This is where having an independent agency really pays off — stronger replacement cost options, business income / loss of rent scaled to your total rental income, higher liability limits, and equipment breakdown built in.
1-4 Unit Residential
Single-family rentals, duplexes, triplexes, and fourplexes. Personal lines risk placed with carriers whose habitational programs consistently outperform the direct writers on replacement cost and loss of rent.
Mixed-Use Properties
Retail on ground floor, residential above? You need a carrier with strong commercial BOP appetite — broader coverage terms, liability options, and the ability to package with umbrella.
Properties with Complex Histories
Prior claims, deferred maintenance, or unusual circumstances? As an independent agency, we have access to specialty markets that write risks the standard carriers won’t touch. That’s the independent agency advantage — we don’t run out of options when the preferred carriers say no.
Why Extended Replacement Cost Exists — A Lesson from Paul
In 1989, a massive fire tore through the Oakland Hills. Thousands of homes burned. The average home was insured for $400,000. The average rebuild cost? Over $1 million.
Two carriers — Safeco and Fireman’s Fund — publicly announced they’d pay the full rebuild cost anyway, absorbing the difference themselves. The California Insurance Commissioner effectively made it the industry standard. Carriers came back with “extended replacement cost” endorsements — coverage that pays above the policy limit to cover actual rebuild costs.
Here’s why this matters to you today:
Extended replacement cost is expressed as a percentage above your dwelling coverage. A policy with “50% extended” on a $500,000 dwelling pays up to $750,000. A policy with “150% extended” on that same dwelling pays up to $1,250,000.
Not all carriers offer the same extended replacement cost options. Direct writers often cap at lower percentages. The A-rated carriers in our portfolio typically offer stronger options — and in the Peninsula, where labor and materials are expensive and rebuilds take longer than anywhere else in California, that difference matters.
“After Oakland Hills, the industry changed forever. Extended replacement cost became the most important number on a landlord’s policy. Make sure yours is high enough — especially in this market.”
— Paul Nadler, Principal
What Investment Property Insurance Actually Covers
Dwelling Coverage
How much the carrier pays to rebuild. You need replacement cost (not actual cash value), an extended replacement cost endorsement as high as you can get, and ordinance or law coverage for code upgrades when rebuilding older properties. Don’t insure for market value — the land doesn’t burn down.
Loss of Rent
If your rental is uninhabitable due to a covered loss, this pays your lost rental income during repairs. In the Bay Area, where supply chain issues and contractor availability stretch rebuilds well past 12 months, we recommend 18-24 months of coverage.
Liability
Tenant or visitor injured on the property? You’re exposed to legal defense costs, settlements, and judgments. In San Francisco — high medical costs, aggressive attorneys, sympathetic juries — $1M minimum per occurrence, $2M aggregate. Umbrella strongly recommended.
Important: Make sure your liability coverage includes personal injury — not just bodily injury. Personal injury covers claims like wrongful eviction, invasion of privacy, and discrimination. For landlords, this is where tenant dispute liability lives. A standard policy without personal injury coverage leaves you exposed to the exact lawsuits rental property owners face most.
Earthquake Insurance
Not included in standard policies. Available through the California Earthquake Authority (15% deductible, government-backed) or private markets with lower deductibles. For Peninsula landlords, at least get a quote.
Equipment Breakdown
Covers HVAC, water heaters, and electrical systems — the things that fail and cost real money, especially in older Bay Area buildings.
Why Bay Area Landlord Insurance Is Different
Higher rebuild costs
Labor and materials cost significantly more here than in the Central Valley or Southern California. Building codes are stricter. Permits take longer. A rebuild that takes 9 months in Sacramento takes 15+ months on the Peninsula.
Older building stock
Pre-1950s housing means outdated electrical, aging plumbing, earthquake vulnerability, and code upgrade requirements if you rebuild. Ordinance or law coverage is essential.
Tenant protections
SF rent control and just-cause eviction laws mean longer vacancy periods. If you need to vacate units to repair, the timeline extends. Budget 18-24 months of loss of rent coverage, not 12.
California market volatility
Carriers are tightening, non-renewing, and raising rates across the state. Having an independent agent with access to multiple markets — including specialty carriers — is more important now than it’s been in decades.
The 8 Mistakes That Cost Landlords Real Money
Insuring for market value instead of rebuild cost
Your property is worth $1.2M but the land accounts for a significant portion. The structure has a different rebuild cost. Get a proper rebuild estimate from your agent.
Not maximizing extended replacement cost
Extended replacement cost varies by carrier. If your carrier offers 50% and another A-rated carrier offers 150%, that’s a significant dollar difference on your property. Shop it.
12 months loss of rent in the Bay Area
Supply chain, contractor delays, permit delays — rebuilds take longer here. 18-24 months is the right number for this market.
Assuming homeowners covers a rental
It doesn’t. You need a landlord / dwelling fire / habitational policy. This is one of the most common mistakes new investors make.
No personal injury coverage on liability
Standard bodily injury liability doesn’t cover wrongful eviction, invasion of privacy, or discrimination claims. For landlords, personal injury coverage is where tenant dispute liability lives. Without it, you’re exposed to the exact lawsuits rental property owners face most often.
No earthquake coverage
15% deductible is high, but it beats zero coverage if we get a major quake. At least get a quote and make an informed decision.
Switching carriers to save a small amount
You’ve been with a carrier for years, no claims, good relationship. A new carrier saves a little on premium but has weaker coverage terms. Bad trade. Always compare the full policy, not just the price.
Not reading the declarations page
Your dec page shows exactly what you have — limits, deductibles, endorsements, covered properties. Read it every renewal. Or better yet, send it to us and we’ll review it for gaps.
Get the Peninsula Landlord’s Insurance Guide — Free
We’re finalizing a complete guide to landlord coverage in the Bay Area — replacement cost, loss of rent, liability (including personal injury for tenant disputes), earthquake considerations, and how to choose the right carrier for your property type. Written by Paul & Zach Nadler. Drop your email and we’ll send it over as soon as it’s ready.
Send Us Your Declarations Page — We’ll Tell You What’s Missing
Most landlords don’t know if they’re covered enough — and their current agent never walked them through the gaps. Send us your current dec page and we’ll review it for free. No obligation, no sales pitch. Just an honest look at your coverage.