Lessors Risk Only Insurance in Los Angeles
Coverage for owners who lease commercial buildings to tenants. A lessors risk only (LRO) policy insures the building and your liability as landlord while tenants carry their own coverage.
Lessors risk at a glance
- Who needs it
- Owners who lease a commercial building to one or more tenants
- What it covers
- The building and your liability as the owner
- Tenant responsibility
- Tenants insure their contents and operations
- Lease check
- Your lease should require tenant liability coverage naming you
- Quote turnaround
- Usually 1-2 days
What a lessors risk policy covers
An LRO policy covers you as the landlord, not as an operator. Your tenants carry insurance for their own businesses, and your lease ties the two together.
Building
Repairs or rebuilds the structure after a covered loss.
Landlord liability
Covers claims tied to the building itself, such as a trip on a broken walkway.
Loss of rents
Replaces rent you lose while the building is repaired after a covered loss.
Ordinance or law
Pays the extra cost to rebuild to current building codes.
Equipment breakdown
Covers building systems like HVAC and electrical.
Umbrella
Adds liability limits above your LRO policy.
What affects lessors risk rates
LRO policies usually cost less than coverage for owner-occupied buildings because tenants carry the liability for their own operations. Rates depend on the building, its location, and what your tenants do.
A restaurant tenant costs more to insure around than an office tenant. We look at your tenant mix and lease terms to price the building accurately.
Ways to lower your premium
- Require tenants to name you as additional insured
- Collect tenant certificates every year
- Document roof, electrical, and plumbing updates
- Choose a deductible that fits your reserves
- Insure multiple buildings together
What moves your rate
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Tenant operations
Restaurants and auto shops cost more than offices.
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Building age and construction
Older buildings and wood frame raise rates.
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Location
Fire risk and crime in the area matter.
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Vacancy
Empty units can limit coverage and raise the price.
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Loss history
Recent claims weigh on renewal pricing.
Lessors risk questions
Don't see yours? Call (310) 751-5979 and ask.
What does lessors risk only mean?
It means the policy covers you as a landlord, not as an operator. Your tenants carry insurance for their own businesses.
What happens if my building goes vacant?
Many policies limit coverage after a building sits vacant for a set period, often 60 days. Tell us when a unit will be empty so we can keep coverage in place.
Should tenants name me on their policy?
Yes. Your lease should require tenants to carry general liability and name you as an additional insured.
Can I use an LRO policy for a building I partly occupy?
Usually not. If your own business uses part of the building, you need a policy that covers your operations too.
Find out what you should be paying
Tell us about your building and tenants. We compare carriers and come back with real quotes, usually within 1-2 days.