LRO Insurance for Commercial Property Owners in Oakland, CA
LRO Insurance for Commercial Property Owners in Oakland, CA
Khidir Insurance Agency helps commercial property owners in Oakland and the Bay Area review Lessors Risk Only (LRO) insurance for buildings leased to tenants. LRO coverage is designed for landlords whose primary exposure is ownership of a commercial building rather than operating the tenant’s business.
Request an LRO Insurance Quote or contact our Oakland insurance team.
What Is Lessors Risk Only Insurance?
Lessors Risk Only insurance is commonly used for owners of commercial buildings leased to one or more tenants. The policy can address the landlord’s property and premises-liability exposures, subject to the policy form, tenant type, occupancy and carrier underwriting.
LRO Coverages to Consider
- Building coverage for covered direct physical loss to the insured commercial property.
- General liability for eligible premises-liability claims involving areas for which the landlord is responsible.
- Business income or loss of rents for qualifying covered interruptions.
- Ordinance or law coverage when available and appropriate.
- Equipment breakdown for eligible building systems.
- Umbrella or excess liability when higher limits are needed.
Tenant Occupancy Matters
The type of tenant can significantly affect LRO eligibility and pricing. Office, retail, restaurant, auto-related, barbershop and other occupancies may be underwritten differently. Landlords should accurately disclose each tenant’s operations, square footage and lease arrangement so the carrier can evaluate the risk properly.
Common LRO Exposures
Commercial landlords can face building fires, water damage, premises injuries, property damage, loss of rental income after a covered loss and claims involving shared areas or building maintenance. The lease can also allocate certain responsibilities between landlord and tenant, but insurance should still be reviewed independently.
Information Needed for an LRO Quote
- Property address and building value
- Year built, construction type and square footage
- Roof, electrical, plumbing and HVAC information
- Number of tenants and occupancy of each tenant
- Annual rental income
- Requested deductibles and liability limits
- Mortgagee information, if applicable
- Prior insurance and loss history
Frequently Asked Questions
Is LRO the same as a tenant’s business insurance?
No. LRO is designed for the building owner’s exposures. Tenants generally need their own business insurance for their operations, liability, property and other exposures.
Can loss of rents be included?
Business income or rental-value coverage may be available for qualifying covered losses, depending on the policy and carrier.
Does the tenant type affect the landlord’s insurance?
Yes. Tenant operations can materially affect underwriting, eligibility and pricing, so accurate occupancy information is important.
Get an LRO Insurance Quote
Khidir Insurance Agency helps Oakland commercial landlords review building, liability and rental-income coverage based on the property and its tenant mix.
Khidir Insurance Agency
3114 San Pablo Ave, Oakland, CA
Phone: (510) 227-6520