How to Obtain Insurance for Investment Properties in Long Beach, CA: Requirements & Considerations

Types of Insurance Graph

Investing in real estate in #LongBeach, California, can be a lucrative venture, but securing the right insurance coverage is crucial to protect your property, tenants, and financial interests. In recent years, insurance companies have tightened their requirements, making it more challenging for investors to obtain affordable policies—especially for older properties or those needing upgrades.  The importance of keeping up with market insurance demands cannot be stressed enough--it may make the difference between getting your property sold, or purchasing if you're a buyer.

Whether you're insuring a single-family rental, duplex, triplex, or fourplex, this guide breaks down what you need to know about insurance requirements, property conditions, and upgrades to ensure your investment stays protected.

1. Types of Insurance for Investment Properties

Before diving into insurer requirements, let’s cover the main types of insurance you’ll need as a Long Beach property investor:

• Landlord Insurance (DP3 Policy) – Covers property damage, liability protection, and loss of rental income.

• Hazard Insurance – Protects against fires, storms, and other natural disasters (often required by lenders).

• Flood Insurance – Required in FEMA-designated flood zones, especially in coastal areas of Long Beach.

• Earthquake Insurance – Recommended due to California’s seismic activity; not included in standard policies.

• Umbrella Insurance – Provides additional liability coverage beyond your landlord policy.

Now that you know the basics, let’s look at the current insurance requirements for investment properties.

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2. Property Condition Requirements: What Insurance Companies Expect

Insurance companies assess risk factors before issuing a policy. If your Long Beach rental property doesn’t meet specific safety and structural requirements, you may face higher premiums, limited coverage, or even denial of insurance.

Here are the key factors insurers evaluate:

Aging Properties: How Old Is Too Old?

• Homes over 30 years old often require additional inspections and upgrades before insurers will issue coverage.

• Properties 50+ years old may need full system replacements (roof, plumbing, electrical) to qualify for standard policies.

• Historic homes (like those in Belmont Heights or Bluff Park) may need specialized coverage due to costly restoration expenses.

Roof Condition & Age

• Many insurers require roofs to be less than 20 years old and free of leaks or major damage.

• Wood shake or older tile roofs may be ineligible for coverage without reinforcement or replacement.

Plumbing & Electrical Systems

• Galvanized steel or polybutylene pipes (common in pre-1980s homes) are often rejected due to corrosion risks.

• Knob-and-tube wiring or outdated electrical panels (such as Zinsco or Federal Pacific) are flagged as fire hazards and must be upgraded.

Foundation & Structural Integrity

• Properties with cracks, settling issues, or signs of water intrusion may require inspections before obtaining coverage.

• Homes in liquefaction zones (such as parts of Downtown Long Beach) might need earthquake retrofitting.

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3. Required & Recommended Upgrades to Qualify for Insurance

If you're buying an older rental property, proactively upgrading key systems can make insuring it easier and more affordable. Here’s what to focus on:

✅ Replace the Roof – If it's older than 20 years, consider installing a new composite shingle or Class A fire-rated roof.

✅ Upgrade Plumbing – Swap out old pipes with PEX or copper to prevent leaks and burst risks.

✅ Update Electrical – Install a modern 200-amp panel and replace aluminum or outdated wiring with copper.

✅ Seismic Retrofits – Bolting the foundation and reinforcing cripple walls can help qualify for earthquake insurance discounts.

✅ Fire Safety Measures – Install hardwired smoke detectors, CO detectors, and fire-resistant materials to improve insurability.

✅ Gated or Secured Entry – Reducing liability risks (such as installing security cameras or controlled access gates) can lower premiums.

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4. How to Find the Best Insurance for Your Long Beach Investment Property

Given California’s increasing wildfire, flood, and earthquake risks, many national insurers have pulled out or raised rates significantly. To get the best coverage:

• Work with a Local Insurance Broker – They have access to specialty insurers that still cover Long Beach rentals.

• Bundle Policies – Combining landlord, flood, and umbrella insurance may qualify you for discounts.

• Choose a Higher Deductible – Opting for a $2,500-$5,000 deductible can help lower your monthly premium.

• Ask About Risk Mitigation Discounts – Installing a security system, fire sprinklers, or impact-resistant windows could save you money.

   

Final Thoughts: Protecting Your Investment in Long Beach

Securing comprehensive insurance is essential for any Long Beach current or potential real estate investor. With stricter requirements and rising costs, staying ahead with proactive property upgrades and working with a knowledgeable insurance agent can make all the difference. If you're submitting an offer now on a property, it's essential that you already contact an insurance broker for an initial estimate, even before you submit the offer.

By ensuring your rental meets modern safety standards, you’ll not only secure better insurance rates but also increase property value and attract quality tenants.

Need Help Finding the Right Insurance Policy?

If you're an investor navigating the insurance market, reach out to a local Long Beach real estate or insurance expert for personalized guidance. Protect your investment—before disaster strikes!

 

 

Julia Huntsman, REALTOR, Broker | http://www.abodes.realestate | 562-896-2609 | California Lic. #01188996

How to Choose the Right Residential Investment Property in Long Beach

Belmont Heights Spanish Style Duplex

Long Beach, California, is a goldmine for real estate investors seeking rental income and long-term appreciation. With its diverse neighborhoods, strong rental demand, and coastal charm, this vibrant city offers lucrative opportunities—but only if you pick the right property. Whether you're considering a single-family home, a duplex, a triplex, or a fourplex, this guide will help you make a savvy investment decision.

1. Location, Location, Location

Not all Long Beach neighborhoods offer the same return on investment. Some key areas to consider:

• Downtown Long Beach – A hotspot for young professionals, with high rental demand and proximity to restaurants, nightlife, and the Metro Blue Line.

• Belmont Shore & Naples – Higher-end beachside properties with premium rental rates. Great for short-term or high-income tenants.

• Bixby Knolls – A suburban feel with charming historic homes, attracting families and long-term renters.

• Zaferia & Eastside – Up-and-coming areas with more affordable multi-family units and strong appreciation potential.

2. Property Type: House, Condo, or Multi-Family?

Your choice of property type will impact your cash flow, financing options, and management responsibilities.

• Single-Family Homes: Easier to manage and attract long-term tenants, but higher per-unit costs and lower overall cash flow.

• Condos: Lower maintenance but come with HOA fees that can eat into your profits. Best for investors who prefer a hands-off approach.

• Duplexes, Triplexes, and Fourplexes: Multi-family units offer higher rental income, better financing terms (still eligible for residential loans), and reduced vacancy risks. Ideal for house-hacking or scaling your rental portfolio.

3. Cash Flow vs. Appreciation

Are you investing for monthly income or long-term value growth?

• Cash Flow: Look for properties where rental income exceeds mortgage, taxes, insurance, and maintenance costs. Multi-family properties tend to outperform single-family homes in this category.

• Appreciation: Choose areas with rising property values, like Belmont Heights or Bluff Park. Other areas such as Wrigley and North Long Beach also hold opportunity. Long Beach real estate has historically appreciated well, making it a solid long-term investment.

4. Rental Market Trends & Tenant Demand

Before you buy, analyze Long Beach’s rental market:

• The median rent for a one-bedroom apartment is around $2,000/month, while multi-unit properties can generate $4,000+ in combined rent.

• High demand from college students (CSU Long Beach), professionals, and coastal lifestyle seekers keeps occupancy rates strong.

• Rent control laws exist in Long Beach, so factor in annual rent increase limits when calculating returns.

5. Financing & Loan Options

If you're house-hacking (living in one unit while renting the others), you may qualify for:

• FHA Loans (3.5% down for owner-occupied duplexes, triplexes, or fourplexes)

• VA Loans (0% down for qualifying veterans)

• Conventional Loans (Higher down payments but no mortgage insurance)

Investors purchasing purely for rental income typically need 20-25% down and should shop for competitive interest rates.

6. Property Management: DIY or Hire a Pro?

Managing tenants, repairs, and legal compliance can be time-consuming. If you’re not local or prefer a hands-off approach, hiring a Long Beach property management company (typically charging 8-10% of rental income) can be a smart move.

Final Thoughts: Making the Right Choice

Investing in #LongBeach real estate can be incredibly rewarding if you choose wisely. Do your research, run the numbers, and pick a property that aligns with your investment goals. Whether it’s a charming Belmont Heights bungalow, a high-yield duplex near Downtown, or a beachside fourplex, your next great investment is waiting.  To find properties, go to my website link below and click on the property search.

Ready to Invest in Long Beach Real Estate?
If you’re serious about finding the perfect rental property, let’s talk! Reach out to me today for expert insights and property recommendations.

See Also:  My related post about property insurance for investment properties.

 

Julia Huntsman, REALTOR, Broker | http://www.abodes.realestate | 562-896-2609 | California Lic. #01188996

Balcony Inspection Required for 3+ Multifamily Units in California

Chalet with wood balcony

In 2015 there was a disastrous collapse of a balcony in Berkeley where a number of students attending a party were injured and six died. This was not an "old" building, but it was one where there was moisture intrusion into the wood framing, resulting in dry rot. 

 As a result of this, the following inspections bills came about.

There were two bills passed in 2018 and 2019 concerning balcony inspections where the structure is supported with wood or wood-based material.

The bill passed in 2018, SB 721, concerns properties with 3 or more multifamily units (not condominiums or other HOA property) that have a balcony, elevated walkway or staircase. 

Do you have a house with two units in the rear with balcony or stair case made of wood? These are not uncommon in many residential neighborhoods, and fall under the requirements of SB 721. 

What is required to be inspected is an “Exterior Elevated Element” (EEE), which is defined as balconies, decks, porches, stairways, walkways, and entry structures that extend beyond exterior walls of the building, which has a walking surface that is elevated more than six feet above ground level and is designed for human occupancy or use.

The due date for this inspection of balconies, elevated walkways and staircases is January 1, 2025.  The inspection must be performed by a licensed contractor with an "A", "B" or "C-5" license with at least 5 years experience, or a certified building inspection.  NOTE:  10-11-2024 - THE DEADLINE IS NOW EXTENDED TO JANUARY 1, 2026.

Inspections on apartment buildings must take place every six years.

Obviously, time is running out so if you fall into this category of ownership of 3+ multifamily units, you should take action as soon as possible.  What is the cost?  It varies according to the number of units, but one local company recently stated that their charge is $1200 for properties of 3-10 units. 

Another issue owners should think about are possible requirements of proof of inspection and completion of any repairs by the owner's insurance company, which may require submission of the report.

For more information, here is a link to SB 721 as passed by the Legislature. 

For more information on the 2015 balcony collapse see this Wikipedia article.

If you are interested in obtaining the name of a company to perform this inspection, please contact me.

If you are interested in a valuation of your property because you need it for insurance purposes, or you are thinking of selling it, please contact me.

Julia Huntsman, REALTOR, Broker | http://www.abodes.realestate | 562-896-2609 | California Lic. #01188996

California Law: Balcony Inspection Due 1-1-2025

The balcony inspection law deadline is looming. Owners of buildings with three or more units with at least one balcony must complete their initial balcony inspections by January 1, 2025.

However, not everyone needs to worry about this law. The inspection requirement applies only to the following types of property:

• Buildings with three or more multifamily dwelling units (this includes condominiums),
• When there is an elevated balcony, stairway, walkway, or deck (at least six feet above the ground),
• That is supported in whole or in substantial part with wood or wood-based material, and
• The balcony or walkway and the load-bearing components thereof extend beyond the exterior walls of the building.

If the stairway or walkway does not extend beyond the exterior walls or if the balcony is not supported in whole or in substantial part by wood or wood-based products, then this law does not apply. Individual owners of condo units are also not required to perform an inspection; that requirement is placed on the condo association itself.  California Association of REALTORS

Building with outset balconies

In condo associations, a licensed engineer or architect must perform the inspection; in other properties a licensed general contractor with A,B or C-5 license may perform the inspection. In condo associations, the law allows the repairs to be done by the inspector, but associations may wish to hire a separate entity to do any necessary repairs.

Several REALTOR forms are being revised, or have been, to include this legal requirement and advise the parties about it.  Fannie Mae loan guidelines require the lender to review the report and repair progress for loan qualification purposes; without completion, an HOA property, for example, will be ineligible for a Fannie Mae loan. Why is this important? Because Fannie Mae carries about 70% of the mortgage market.

For more specifics on this law, which requires an inspection every 9 years, go to Civil Code Sec 5551 information

Please contact me if you would like a one-page Guide that summarizes the law. 

Julia Huntsman, REALTOR, Broker | http://www.abodes.realestate | 562-896-2609 | California Lic. #01188996

Rent Growth is Surging

Rents increase in 93% of metro areas

The national multifamily is surging ahead this year in many markets, over 10% to $1539 monthly rent nationwide.  August, according to Yardi Matrix's August report, showed year over year rent growth in 30 markets:  Phoenix leading at 22 percent, Tampa, Las Vegas, San Francisco at 1.4%.  

In August, seven gateway markets surpassed pre-pandamic levels, from March 2020:   Miami (16.2 percent), Boston (7.0 percent), Chicago (6.4 percent), Los Angeles (4.9 percent) and Washington, D.C. (3.9 percent).  The ApartmentList.com graphic, from an April presentation, shows increases in metro areas.

On a month-over-month basis from July 2021, Las Vegas, at 3.3 percent, with the Inland Empire and Seattle, at 3.1 percent, registered the largest increases.

Single family rentals, however, outpaces multifamily in the top 30 metro areas, especially in Florida and Texas metro areas. 

Long Beach

Locally, what are rents for residential properties?  For brand new housing, Holland Partners has recently opened Volta at 635 Pine where rents start at $2175 for a 1st floor studio under 500 sq. ft., on up to $4590 for a townhome style unit--there are 11 units in this project designated for affordable housing.  

Long Beach is a mix of neighborhoods and property styles, so if the apartment searcher opts for a wider variety, the REALTOR MLS reflects a range of different properties on the market for rent or lease, starting at $1395/month for a 500 sq.ft. unit on Pine Ave (downtown) to $15,000 for a house on Naples Island.   Average rent for units in a 4-plex or other apartment style unit is $2100/month; average rent for condominiums is $3000/month; average for a single family is $3477/month (excluding the outlier house for $15,000).  

Alternately, rents in Huntington Beach start at $1800 for 593 sq. ft. condo; Lakewood currently has 4 listings for tent (in the MLS), starting at $3000; Cerritos starts at $2195.  While the renter may find more listings on other internet sites, these prices will probably be very indicative of what is listed elsewhere.

There are many economic factors relating to the higher rents, but one major factor stands out, that consumers who did not lose their jobs during the 2020 pandemic months are still economically strong, while other workers in the food industry and retail were more affected, unfortunately, and will take longer to gain strength in the housing market.  The numbers of individuals who have returned to family homes is a topic for another day, but is also part of the renter picture.

Julia Huntsman, REALTOR, Broker | www.juliahuntsman.com | 562-896-2609 | California Lic. #01188996