Aug 12 2025 16:46

Lessor’s Risk Insurance: Property Coverage

Lessor’s Risk Insurance: Protecting Property Owners Who Lease Their Buildings

 

If you own a building and lease it to tenants, you’ve made a smart investment. But that investment comes with unique risks—from property damage to potential lawsuits—that can quickly threaten your financial stability. Lessor’s Risk Insurance(also known as landlord insurance or LRO ) is designed to help you protect that investment, your income, and your peace of mind.

 

What Is Lessor’s Risk Insurance?

 

Lessor’s Risk Insurance provides coverage for property owners who lease or rent out commercial buildings. It protects against losses stemming from property damage and liability arising from tenant operations. Whether you own a retail plaza, office building, or warehouse, LRO coverage helps safeguard your financial future.

 

Key Coverages

  1. Property Damage
    Coverage for damage to the building itself caused by events like fire, vandalism, or natural disasters.
  2. Business Income
    If a covered event—such as a fire or storm—renders the property uninhabitable, this coverage can help replace lost rental income.

 

Why It’s Essential

  • Protect Your Investment
    Your property is a valuable asset—protecting it from risk is critical.
  • Mitigate Liability
    Tenant operations can create unexpected legal exposures. LRO coverage helps manage these liabilities.
  • Ensure Financial Stability
    With protection for both property damage and liability claims, you can continue operations even after a costly incident.

 

Common Property Types Covered

  • Commercial Office Spaces
  • Retail Buildings
  • Shopping Centers and Malls
  • Storage Facilities
  • Warehouses

 

Examples of Covered Scenarios

  • A fire damages the building due to faulty wiring in a tenant’s unit.
  • A storm interrupts a tenant’s business, causing the owner to lose rental income.

 

Property Coverage Highlights

  • Limited Access Facility options
  • Standalone Coastal Wind & Hail, Earthquake, and Flood coverage
  • Equipment Breakdown (available for additional premium)
  • Ordinance or Law coverage for risks built post-2000

 

Limits & Availability

  • 100% insured-to-value replacement cost
  • TIV up to $500M
  • 100% of the first $50M
  • Markets available for high-risk properties (35K MP)
  • Available as primary or excess coverage

 

Your property is more than just a building—it’s a business. Lessor’s Risk Insurance is the safety net that ensures your investment remains protected, your income is secure, and your operations can weather any storm.

 

📞 Contact us today to discuss the right property coverage for your LRO properties.