Insurance by Castle - How Dwelling Fire Insurance Safeguards California Landlords From Bankruptcy

How Dwelling Fire Insurance Safeguards California Landlords From Bankruptcy

California is ground zero when it comes to the dangers of fire season.  Landlords and homeowners alike don’t need to be residents for long before they come to this realization.  

In order to safeguard valuable assets, dwelling fire insurance should be taken into consideration.  

Dwelling Fire Insurance vs Homeowners Policy

Especially here in the Golden state, which is prone to wildfires, finding a homeowners plan that insulates you from this natural disaster can prove difficult.

Therein lies one reason to entertain the idea of a dwelling fire insurance policy.

Let’s look at how they align and where they diverge in terms of scope.

Both cover:

  • Main house
  • Structures attached to the main house
  • Electrical, plumbing, and heating systems inside the home
  • Perils, or the events/forces that cause losses

But where do they differ?

Although a homeowners policy can shield your home and possessions from fire damage, it only does so for your primary residence.  This is normally sufficient unless you’re like most landlords who own multiple properties.  

In that case, it’s worth noting that dwelling fire insurance protects:

  1. Investment properties (home, apartment)
  2. Vacation homes
  3. Vacant homes that are up for sale 

Careless behavior is the number one cause of fires in the home, and feelings of powerlessness as a landlord can be very real in this situation.  After all…you don’t reside there, the tenant does.

For vacation and vacant homes, electrical shorts and vandalism can present unexpected consequences.  There’s no reason to empower thoughts of fear surrounding these structures’ longevity, especially with the “umbrella” a high-quality policy affords.

How Important is Dwelling Fire Insurance?

During the past year, you’ve been facing new uncertainties, especially when it comes to collecting rental income.

What used to be a primary benefit of renting out your properties has suddenly become less of a sure thing.  How does dwelling fire insurance factor into this equation?

In the event that fire damage is sufficient enough to require the tenant vacate the premises, your policy will reimburse you for any unpaid rent.

Beyond accidental damage, like leaving the stove on unattended, there is another type of harm from a tenant that can be included in this insurance.

  • Malicious intent

According to Law Insider this is defined as, “intentional or knowing damage to the property of another, without his consent, with an intent to thereby cause emotional stress.”

Maybe you’ve left personal equipment so your renter can use them for repairs and maintenance.  There are certain policies that insulate these tools from fire damage, so be sure to ask when shopping for this protection.

Now that you understand the hidden benefits of protecting your properties from fire, the choice resides with you on what to do with that knowledge.  

While you mull that over, allow us the opportunity to share why we can confidently speak to this issue.

Insurance by Castle and Dwelling Fire Insurance 

Three types of policies fall under this “firebreak”:

  1. Basic
  2. Broad
  3. Special

Insurance By Castle has been providing dwelling fire insurance in Redwood City, San Mateo, and the surrounding areas throughout California for over 30 years!

A name that’s trusted and backed by countless positive reviews, we operate independently of insurance providers, allowing us to shop around and secure the most affordable rates for our clients.

For a customized policy call (650) 364-3664 today or request a dwelling fire insurance quote online!

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