Landlord insurance (also called "dwelling" or "DP" policies) covers the building structure, landlord liability, and lost rental income for rental properties. Separate from tenant renter's insurance.
Typical landlord policy: building coverage (rebuild cost), liability coverage (slip-and-fall, premises claims), loss of rents (if building becomes uninhabitable), and optional coverages (earthquake via separate policy, umbrella for excess liability). Costs 2026: meaningfully higher than 2021 due to wildfire risk reclassification.
LA multifamily insurance premiums have risen 30-60% from 2021 to 2026 driven by wildfire loss events and market reclassification. Some carriers have withdrawn from California multifamily. This is a material expense line for sellers preparing for sale — factor current premiums into operating statements.
From the Sterman LA Multifamily Glossary — defined the way a broker with $1.41 billion across 254 closed transactions actually uses these terms.
Michael Sterman, Senior Managing Director Investments, Marcus & Millichap.
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