Question 1

What is the difference between a residential landlord policy and a habitational insurance program?

Accepted Answer

A residential landlord policy (dwelling fire or DP-3) is designed for 1–4 unit rental properties and is placed in the personal lines market. A habitational insurance program is a commercial property program designed for 5+ unit apartment buildings and multi-family investments. Habitational programs offer higher per-location limits, broader coverage forms (including equipment breakdown and loss of rents), and commercial claims handling appropriate for investment properties and property management companies.

Question 2

Can I get habitational insurance for a pre-2000 frame building?

Accepted Answer

Yes, through specialty habitational programs. Many standard admitted carriers restrict or exclude older wood-frame construction, especially in California due to earthquake and wildfire exposure. Specialty admitted and E&S habitational markets can accommodate pre-2000, non-sprinklered, and wood-frame multi-family properties — often at competitive rates when the property is well-maintained with documented roof, electrical, and plumbing updates.

Question 3

Does habitational insurance cover loss of rental income?

Accepted Answer

Yes. Loss of rents (also called rental income or business income coverage) is a standard component of commercial habitational programs. If a covered loss — fire, water damage, or other covered peril — makes units uninhabitable, loss of rents pays the rental income you lose while the building is being repaired, typically for up to 12 months or until restoration is complete.

Question 4

What liability coverage does a habitational policy include?

Accepted Answer

Habitational general liability covers premises liability for tenant and visitor bodily injury (slip-and-fall, inadequate maintenance), property damage from building deficiencies (pipe burst, roof leak), and personal injury including wrongful eviction. Many programs include an assault and battery sublimit. Umbrella coverage is strongly recommended for multi-family properties in higher-crime or densely populated areas.

Question 5

Are California apartment buildings in brush zones insurable?

Accepted Answer

Yes, through surplus-lines and specialty habitational markets. Standard admitted carriers have significantly reduced or eliminated their California habitational portfolios in WUI (wildland-urban interface) zones. Casurance accesses specialty E&S markets that write California apartment buildings in brush areas, often with site-specific deductibles, defensible-space requirements, and manuscript property forms tailored to California brush exposures.

Habitational Insurance

Quick Answer