If you own a building or property that you rent out to tenants, you likely want to protect your investment from any damages or liability claims. This is where lessor’s risk insurance, also known as landlord’s insurance, comes in. Lessor’s risk insurance is a type of insurance policy that provides coverage to property owners against losses associated with their rental properties. It protects against both physical damage to the property itself as well as third party liability claims.
Who Needs Lessor’s Risk Insurance?
If you rent out a property to tenants, having lessor’s risk insurance should be a top priority. Without it, you could face major out-of-pocket costs for repairs and legal claims. Lessor’s risk insurance is essential for any individual or company that rents out properties, including:
- Landlords who rent out apartments, houses, condos, etc.
- Property management companies that oversee rental properties
- Businesses renting out office spaces or retail locations
- Owners of vacation rental properties
What Does Lessor’s Risk Insurance Cover?
The specific coverages and limits depend on the policy. But having robust lessor’s risk insurance ensures you’re protected against many risks associated with renting out property. A typical lessor’s risk insurance policy will provide protection against:
- Property damage – Covers damage to the building and its contents from covered causes like fire, smoke, vandalism, etc.
- Loss of rental income – Reimburses lost rental income if the property is uninhabitable due to a covered loss.
- Liability claims – Protects against third-party liability claims like tenant injuries or damage they cause.
- Legal defense fees – Covers legal defense costs if you’re sued by a third party.
Benefits of Lessor’s Risk Insurance
Lessor’s risk insurance provides protection for companies or individuals that lease equipment, vehicles, or other assets. It covers the lessor’s exposure if the leased asset is damaged or causes injury to others. Without this coverage, the lessor would suffer significant financial losses if a lessee is negligent with the leased property. For companies relying on leasing and rental income, lessor’s risk insurance is an essential safeguard. There are many important benefits that come with having proper lessor’s risk insurance coverage:
- It protects your rental investment against unpredictable, costly losses.
- It provides peace of mind knowing you have comprehensive protection.
- Quick payment of claims helps resume rental income streams faster after a loss.
- Liability coverage protects your assets from tenant lawsuits.
- It’s often a requirement when obtaining a mortgage loan on rental properties.
- Helps make your rentals more attractive to prospective tenants.
If you’re a property owner earning income through rentals, don’t wait until it’s too late – get lessor’s risk insurance for your protection with Linwood Guardian. Purchasing an affordable policy that covers your specific needs is an investment in your future that every landlord should make.
