'What is Landlords' or Lessors Risk Only Insurance (LRO)?
Landlords' insurance is an insurance policy that covers a residential property owner from financial losses connected with rental properties. When it's a commercial property it is known as Lessors risks only insurance (LRO). Both policies cover the building, with the option of insuring any contents that belong to the landlord that are inside, liability coverage in the event someone is injured on the property and lost income/rents if the building is inhabitable from a covered loss like a fire. There are multiple options and discounts available for each policy.
What is Usually Covered With Landlord Insurance or Lessor's Risk (LRO) ?
The policy will normally cover standard perils such as fire, lightning, explosion, earthquake, storm, flood, escape of water/oil, subsidence, theft and malicious damage. Each insurance policy is different and may or may not include all these items. Optional coverage might include accidental damage, malicious damage by tenant, terrorism, legal protection, alternative accommodation costs, contents insurance, rent guarantee insurance, and liability insurance.
Landlords' insurance policies typically do not cover any personal property belonging to tenants, or otherwise protect the interest of tenants; although a liability policy protecting a landlord or property manager will be of benefit to tenants should they incur a loss for which the landlord is responsible.
Contact us to learn more about the right landlords' insurance policy for your property.
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Carlsbad, CA 92009
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