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Lessor's Risk Only Insurance in California

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If you are a landlord who owns a commercial building and leases it out to tenants, you need to have California Lessors Risk Only Insurance. This special type of commercial property insurance covers you for any liability or property damage that may arise from your tenants' activities or third parties who visit your building. 


For example, if a tenant causes a fire that damages your building or injures someone, or if a customer slips and falls on your property and sues you, California Lessors Risk Only Insurance will cover the costs of repairing the damage, paying for medical expenses, and defending yourself in court. 


This insurance is essential for landlords who rent out office buildings, retail stores, warehouses, or other commercial spaces where there is a high risk of accidents or lawsuits. By having California Lessors Risk Only Insurance, you can protect your investment and avoid financial losses that could ruin your business.


We are a Trusted Lessor's Risk Only Insurance Agency in California


If you are looking for a reliable and experienced insurance agency specializing in lessor's risk only insurance in California, you have come to the right place. 


Western Insurance Marketing Corporation is a trusted name in the industry, with over 50 years of providing comprehensive and affordable coverage for landlords, property owners, and commercial tenants. Whether you own or lease an office building, retail store, warehouse, or any other type of commercial property, we can help you protect your investment and liability with our customized lessor's risk only insurance policies. 


We work with top-rated carriers and offer competitive rates and flexible payment options. Contact us today and let us show you why we are the best choice for your lessor's risk only insurance needs in California.

Do I Need a California Lessor's Risk Only Insurance Policy?


If you own a commercial property in California and lease it to tenants, you may wonder if you need a lessor's risk only (LRO) insurance policy. This type of policy protects you from liability claims arising from your tenants' operations or activities on your premises. Here are some factors to consider when assessing the need for this coverage:


  • The type of tenants you have and the nature of their business: Some tenants may pose a higher risk of causing property damage or bodily injury to third parties than others. For example, a restaurant or a manufacturing facility may have more potential hazards than an office or a retail store.
  • The terms and conditions of your lease agreement: Review your lease contract carefully and understand your rights and responsibilities as a landlord. You should also check if your tenants are required to carry their own liability insurance and name you as an additional insured on their policy.
  • The value and condition of your property: Evaluate the replacement cost of your building and its contents, as well as the cost of repairing or restoring it in case of a covered loss. You should also consider the age and quality of your property and its systems, such as plumbing, electrical, heating, and cooling.
  • The location and exposure of your property: Consider the geographic area where your property is located and the level of crime, vandalism, natural disasters, and other risks that may affect it. Also assess the exposure of your property to traffic, pedestrians, neighboring businesses, and public utilities.
  • The legal and regulatory requirements of your state: The state of California requires most landlords to have some form of financial protection for their tenants. Lessor’s Risk Only insurance is a brilliant way to protect your tenants and property. 


These are some of the factors that you should consider when deciding if you need a California LRO insurance policy. However, every situation is different and you should consult with a professional insurance agent or broker to get personalized advice and recommendations based on your specific circumstances.

Forms of Coverage Offered by California Lessor's Risk Only Insurance


Some of the common scenarios that lessor's risk only insurance covers are:


  • Slip-and-fall accidents: If a tenant or their employee slips and falls on your property due to a wet floor, loose carpet, or uneven pavement, they may sue you for medical expenses and lost wages. Lessor's risk only insurance would cover your legal fees and tenant reimbursement for their injuries.
  • Weather damage: If a storm causes damage to your property or your tenant's property, such as broken windows, roof leaks, or fallen trees, you may be liable for the repair costs. Lessor's risk only insurance would cover the damage to your building and your tenant's belongings.
  • Theft and vandalism: Your lessor's risk only insurance can kick in if a burglar damages or takes your tenant's belongings on your premises. You don't have to worry about paying for the repair or replacement costs of your tenant's property. 
  • Fire and smoke damage: In the event of a fire break out on your property that causes damage to your building or your tenant's property, you may be sued for negligence or faulty wiring. Lessor's risk only insurance would cover the damage to your building and your tenant's property, as well as any business interruption losses that your tenant may incur.
  • Water-related damage: Having a lessor's risk only insurance policy can save you from a lot of trouble and expense when a pipe bursts or a sewer backs up and floods your building or your tenant's belongings. It will protect you from paying for the water damage to your building and your tenant's property out of your own pocket..
  • Vehicle accidents at the property: If a vehicle crashes into your property and causes damage to your building or your tenant's property, you may be sued for negligence or poor maintenance. Lessor's risk only insurance would cover the damage to your building and your tenant's property.
  • Data loss: If a cyberattack or a power outage causes data loss or corruption for your tenants who use your network or Wi-Fi, you may be sued for breach of contract or negligence. Lessor's risk only insurance would cover the costs of restoring or recovering your tenant's data.


Lessor's risk only insurance is essential coverage for California commercial landlords who want to protect their investment and avoid costly lawsuits from their tenants. It can help you pay for legal fees, settlements, judgments, and damages that may result from various risks associated with owning and leasing out commercial property.

Does California Lessor's Risk Only Insurance Cover Property Damage?


No. Lessor's risk only insurance does not cover property damage. However, many landlords who buy LRO insurance can also get building insurance as part of their LRO policy, similar to a business owner's policy (BOP).


Building insurance will help you recover from covered losses and avoid financial losses when you have to close your property for repairs and lose rental income.



If you cause a loss on purpose, like starting a fire to get an insurance payout, you won't be covered by LRO insurance either.

Common Exclusions


LRO insurance does not cover everything. Here are common exclusions that you should be aware of:


  • Damage caused by war, terrorism, or nuclear hazards
  • Damage caused by mold, fungus, or bacteria
  • Damage caused by wear and tear, deterioration, or faulty workmanship
  • Damage caused by pollution or contamination
  • Damage caused by earth movement, such as earthquakes or landslides
  • Damage caused by water damage, such as floods or sewer backups
  • Damage caused by insects, rodents, or vermin
  • Damage caused by intentional acts of the insured or the tenants
  • Liability arising from professional services or advice provided by the insured or the tenants


These are just some of the exclusions that may apply to your LRO policy. You should always read your policy carefully and consult with your insurance agent if you have any questions or concerns.

How Much Does California Lessor's Risk Only Insurance Cost?


The answer depends on several factors, such as the size and location of your property, the type and number of tenants you have, the amount of coverage you need, and your claims history. 



Generally speaking, the average annual premium for lessor's risk only insurance in California ranges from $500 to $1,500 per $1 million of coverage. However, this is just a ballpark estimate and your actual cost may vary depending on your specific situation. 


To get an accurate quote for lessor's risk only insurance in California, you should contact a licensed insurance agent who can help you compare different options and find the best deal for your needs.

Get The Best Rates on California Lessor's Risk Only Insurance


Let our skilled agents help you find the best rates on California lessor's risk only insurance. We work with top-rated carriers to offer you customized coverage options that suit your needs and budget. 



Contact us today for a free quote and see how much you can save on lessor's risk only insurance.

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