Lessors Risk Only Insurance

Lessors Risk Only Insurance

| November 17, 2016

Lessor’s Risk Only (LRO) Insurance, also known as Landlord’s Insurance, is a specific type of property and liability coverage designed for building owners. This type of insurance package is common among owners of apartment buildings, warehouses, retail buildings, commercial office space, shopping centers, and more.

What is covered?

A lessors risk insurance package includes both commercial property insurance and general liability insurance, which addresses a wide range of perils. 

Common claims scenarios covered under a lessors risk insurance package include:

  • Weather-related damage
  • Slip and fall
  • Vandalism
  • Fire
  • Burst pipes
  • Water backup


Underwriting requirements can vary from carrier to carrier, but nearly all insurance providers will look to confirm that the building is cared for and is at least 75% occupied. When obtaining coverage for older buildings, insurers will also verify that renovations and/or updates have been made to the roof, HVAC systems, eletrical, and plumbing. 

If your building is financed or you intend to obtain financing when purchasing a commercial rental property, your lender will likely require that you obtain lessors risk insurance in advance of the settlement and maintain the coverage for the life of the loan. 

If you own and lease out a commercial property, LRO coverage is a must-have. To learn how to protect your investment, call Scott Jefferson at (703) 683-6601.