| NYC Business Group
Essential Details You Need to Know about Lessor’s Risk
Lessor's risk insurance protects you from liability arising from a lessee's property loss, which includes damage and destruction of property, vandalism and theft.
What Risks Does Lessor’s Risk Cover?
This insurance policy covers a wide range of risks resulting in property damage or bodily injuries from a property that’s leased to a client. Some of the risks covered include:
- Weather damage
- Auto accidents at the property
- Vandalism
- Fire
- Water-related damages for example back-ups and burst pipes
- Slip and fall injuries
- Theft
In some cases, with an endorsement to the base of the policy, lessor risk insurance can cover other risks.
Get a Lessor's Risk Quote for Your Property Today!
Differences Between Lessor's Risk and General Liability Insurance.
The two insurance policies are similar although they have a slight difference.
Bottom-line, the insurance policies protect you when third parties claim you caused them bodily injury or damaged their property.
If you feel you need General Liability, let us give you a quote today!
The landlord insurance is only applicable to losses resulting from a tenant’s use of your property. For instance, if a tenant slips and falls in your leased building and consequently blames you for failure to provide enough lighting, the lessor's risk only policy would provide you with an attorney and pay all your legal expenses up to your purchased limits.
On the other hand, if other third parties (not your tenants) claim property damage or bodily injuries they suffered from your property, your general liability insurance kicks in. For example, if a pizza delivery person slips and falls on your property, general liability insurance will help you. Ergo, property owners need to have both the lessor's risk only and general liability insurance.
Differences Between Lessor's Risk and Commercial Property Insurance
Since lessor's risk protects you against tenants' claims against bodily injuries or property damage, it cannot protect your commercial properties against any types of damages. For that, you need to invest in commercial property insurance.
Does Lessor's Risk Cover Your Tenant’s Property?
No. Lessor's risk policy's do not cover your tenant’s personal property. For that, your tenants should seek coverage from the homeowner’s policy or their renters.
Underwritings Considered in a Lessor's Risk Policy
The underwriting requirements vary from one insurer to another. However, most insurers will look forward to your building being:
- Well maintained
- Fully/largely occupied
- Protected by fire extinguishers, sprinklers, and smoke detectors
- Free of any electrical hazards
Get help with deciding if the building you own needs a Lessor's Risk Policy, by contacting our agency, we will be able to help you figure out the right coverage for your needs.