Lessors Risk Insurance Definition

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"Lessors risk insurance" is purchased by a building own to revive for their liability. Get a lessors risk insurance definition with help from an insurance professional in this free video clip.

Part of the Video Series: Insurance Information
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Hi, I'm David Sumpter, Commercial Insurance Specialist with Wateridge Insurance in San Diego. Today, we're going to talk about lessors risk insurance. Lessors risk is a insurance policy that's purchased by a building owner to revive for their liability, the value of their property and the value of any loss rents if the building burns down or is a covered cause of loss. What is lessors risk not intended to cover? It's not intended to cover your tenants, so any of the tenants in your building need to have their own policy. This is really important. Make sure you get a policy for yourself and make sure they have a policy and name you additionally insured. That way you're double covered. What is it also not intended to cover? That would be repairs and maintenance on your building. You need to provide for that through a maintenance contract or some other kind of contract. That's not what the insurance is intended for. Some other things you want to think about when you're considering your lessors risk policy, review with your agent and check out a couple of things. Number one, look at vacancy. If your building has more than 25 percent vacant space, you're going to have a coverage issue. What do I mean by that? Well, if the building burns down or is, it, there's theft or vandalism involve, there's not going to be coverage if you have more than 25 percent vacancy. I see this all the time. So, make sure you double check with your broker whenever you have more than that amount of vacancy. Make sure you get an A rated carrier so there's going to be around when you need them if you have a claim. Lessors risk coverage is crucial for building owners. Make sure you check with your insurance broker to make sure you have the right coverage. I'm David Sumpter, Commercial Insurance Specialist with Wateridge Insurance.

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