Insurance for Lessor's Risk Only
This product has been designed to attract building owners who rent their property with or without apartments and/or offices to eligible mercantile tenants.
Target Risks: (Not limited to those below)
- Risks with up to 100,000 square feet per location
- Applicant is the owner of all properties
- No structural renovations ongoing or planned during our policy term
- Any building height (over seven stories must have full sprinkler system)
- And more!
Ineligible for Online Quoting:
Please note we cannot offer coverage to the following:
- Commercial tenants not required to carry their own insurance and certificate of insurance confirming coverage not obtained by owner or property manager
- Tenant operations include a hospital, nursing home, assisted living facility, elderly care facility, health care facility or residential exposure
- Located in AK, LA or WV
Coverages Available For Lessor’s Risk Only
- Property values up to: (excluding wind and hail coverage)
- $3,000,000 in protection classes 1–8 (higher limits may be available for eligible office exposures)
- $5,000,000 on office only occupancy in Protection classes 1–8
- $1,000,000 in protection classes 9–10
- $1,000,000 in coastal zones
- General liability up to $1,000,000 occurrence/$2,000,000 aggregate
Optional Coverage For Lessor’s Risk Only
- Excess general liability or umbrella up to $5,000,000
- Hired and non-owned auto liability up to $1,000,000 (equal to the general liability occurrence limit; not available in some states and limitations of coverage in AZ, GA, IL, WI)
Claim Example for Lessor's Risk Only
Property: A fire began at the insured’s premises, due to a grease fire in the bar. It caused $65,000 in building damage. In order to repair the damage, the 1st floor bar tenant and the 2nd floor apartment tenant had to be evacuated for 2 months. This resulted in the loss of rental income for the insured. Severe wind caused the roof of the insured’s building to collapse resulting in $25,000 of building damage.
General Liability: Severe wind caused the roof to collapse injuring two tenants of the building. The tenants sustained $15,000 in medical expenses. A hose on the dishwasher located in the second floor apartment unit ruptured causing water to leak through to the pizza shop on the ground floor. This caused damage the seating area and the kitchen. The shoe store sued the building owner for negligence and damage to their shop resulting in a third party property damage loss of $10,000. A passerby caught her shoe on a crack in the pavement and fell outside the insured’s building resulting in $2,000 medical expenses.
Value Plus: Lightning struck a tree on the insured’s premise outside of their apartment building. The tree fell causing damage to three of the cars parked in the parking lot of the insured building. The value of the tree was $200 and the damage to the cars totaled $14,000. The tree was replaced and the cars were repaired.
Equipment Breakdown: A power surge resulted in the operation failure of a hermetically sealed 25hp motor in the air conditioning system. This caused a property damage loss of $28,600.