What sets landlord insurance prices in California?

Each insurer sets its own rates. For a standard insurer, California's insurance commissioner must approve them before they are used (Insurance Code Section 1861.01).

Each rate request gets public notice. A consumer can ask for a hearing, and for a personal policy the commissioner must hold one on a timely request if the change tops 7%.

Landlord policies have rates of their own. On the Department's list of rate decisions closed from January through September 2026, approved changes for landlord and dwelling programs ranged from no change to 32.8%.

In January 2026, one landlord program that asked for 50% was approved at 27.2%.

The 32.8% came from State Farm General's rate case, which settled in March 2026 and received final approval from the commissioner on July 23, 2026. The settlement cut an interim 38% rental-dwelling increase, while the company's homeowners increase stayed at 17%.

For the statewide picture, see why home insurance went up in California in 2026.

The FAIR Plan's online calculator shows the kinds of facts that set a price. Under "Rating Information," it asks for the building type, construction, roof, year built, deductible, occupancy and number of units.

It also asks how far the responding fire station is and whether a public fire hydrant sits within 1,000 feet. The calculator uses those answers to set what it calls the protection class.

Occupancy has its own choices there: owner, tenant, seasonal or vacant. There is also a box for a home "rented for less than 365 days."

Standard insurers file their own rating plans with the Department, so compare quotes on the same rebuild amount and deductible.

The rebuild amount itself can differ by insurer. The Department of Insurance notes that each company has its own formula for rebuild cost, so "different insurers may suggest or require different limits."

Yes, with insurers that price wildfire risk. Since October 14, 2022, a California rule has required those insurers to credit safety work in their rates. The list includes a Class A roof and cleared ground within 5 feet of the building.

The same rule also credits community efforts: a Firewise USA site in good standing, or a community on the Board of Forestry's list. It also requires those insurers to put your wildfire risk score in writing.

If the rental is on the FAIR Plan, its rates changed too. FAIR Plan dwelling rates are 29.1% higher on average for new policies and renewals on or after October 15, 2026. Some homes see more than that, and some see less.

On September 30, 2026, tenant-occupied homes accounted for 116,065 of the FAIR Plan's policies, and 29,180 of those were in its High wildfire tier.

The Plan's discount sheet offers 12 wildfire discounts on dwelling policies, including rentals, for steps like cleared vegetation and ember-resistant vents.

Each optional coverage you add raises the price. The FAIR Plan's dwelling page says optional coverages, such as vandalism, "are available at an additional cost."

The deductible, the part of a claim you pay yourself, works the other way. The Department of Insurance's guide says "a larger deductible may significantly reduce your premium" if you can afford more of the risk.

The form decides what you get. A DP-1 form pays only for the types of damage it lists. A DP-3 form covers the building against any cause it does not exclude, and the guide to renting out your house explains both.

Lost rent has its own limit, and so does liability, which standard landlord forms leave out unless you add it. Ask for prices at more than one limit for each, so you can see what each step adds.

Check which way a claim on the building would be paid: replacement cost, which pays to rebuild new, or actual cash value, which takes age off.

It can. The FAIR Plan's calculator treats a tenant-occupied home, a seasonal rental and a vacant home as separate choices that feed the price.

Short stays raise their own questions, which the city-by-city short-term rental rules cover.

Whatever the use, describe it accurately. The Department of Insurance's guide tells shoppers to "provide complete and accurate information" when they ask for a quote.

The same guide says an insurer has 60 days from a new policy's start to check how it priced the policy. In that time, it must tell you of any error and the price change.

Ask standard insurers for landlord quotes before you try specialty insurers. Use the FAIR Plan only for a rental that both turn down. Ask each one the same questions, in writing:

• Which facts about the rental, such as its location, roof or number of units, set this price?
• What rebuild amount does the price assume, and is a claim paid at replacement cost?
• What deductible does the price use, and what would a higher one change?
• How much lost rent and liability coverage does the price include?
• Which wildfire or safety discounts did the rental get, and which could it add?
• Does the price change if the home sits vacant between tenants?