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Lessor's Risk Insurance
California Lessor's Risk Insurance is designed for property owners who rent out commercial spaces, like office buildings or retail stores.
It provides coverage for liability claims if a tenant or visitor gets injured on the property, and it can also protect the building itself from damages due to fire, storms, or vandalism.
This insurance is important for landlords because it helps protect their investment and shields them from costly lawsuits or repair expenses.
Who needs Lessor's Risk?
Lessor's Risk Insurance is essential for anyone who owns and rents out commercial properties.
This includes:
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Commercial landlords: Those leasing office buildings, retail stores, or warehouses.
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Property owners with multiple tenants: People who rent out spaces to businesses like restaurants, shops, or medical offices.
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Real estate investors: Owners of shopping centers, strip malls, or apartment complexes with commercial tenants.
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If you rent out property to businesses, Lessor’s Risk Insurance helps protect you from liability claims and property damage, making it a smart investment for commercial landlords.
​What does Lessor's Risk Exclude?
California Lessor's Risk Insurance typically excludes certain situations, including:
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Tenant property: It doesn’t cover the tenant's personal belongings or business inventory.
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Tenant liability: If a tenant is responsible for injury or damage within their rented space, the landlord’s insurance won’t cover it.
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Normal wear and tear: Routine maintenance issues or aging of the building aren’t covered.
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Intentional acts: Damage caused intentionally by the landlord or tenant is not included.
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Floods and earthquakes: These natural disasters often require separate coverage.
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It's essential to review the policy for specific exclusions and consider additional coverage if needed.