No matter the type of property you are leasing, life is full of surprises, and Lessor’s Risk Insurance or LRI helps protect you and your property. Often without the right insurance coverage, much, and in some cases all, you have worked hard to build can be lost with one ill-timed natural disaster or accident. If you are found liable for accidental injuries or damage to your property, an LRI policy will help you cover those expenses. At Insurance Broker Direct, our independent agents work hard to help you customize the best LRI solution for you so you can protect the assets you have worked hard to build.
What Is the Lessor’s Risk?
Lessor’s Risk is the risk you take when leasing your property to another individual, whether for commercial or residential use. The risk can take the form of a tenant’s appliance overheating, catching fire, and subsequently catching the unit on fire. The tenant’s renter’s insurance typically only covers property they lost in the fire, not the damage to their unit or the rest of the building. As the owner of the property, it is usually up to you to repair these damages, possibly losing out on income as tenants move elsewhere during repairs. Even a tenant slipping on a patch of ice that has yet to be uncleared on your property can find you liable for the tenant’s medical bills and time off from work. These costs can add up, but this is where Lessor’s Risk Insurance comes in.
Benefits of Indiana Lessor’s Risk Insurance
At Insurance Broker Direct, we work with you to underwrite the best insurance solution for you to help prevent accidental fires and falls from taking the business you have worked hard to build from you. An LRI policy will help cover lawyers’ costs, medical bills, and even repairs when life happens. Though the details and coverage from policy to policy may vary by property and agency, most comprehensive LRI policies will cover events such as:
- Slip-and-fall accidents
- Vandalism and theft
- Weather damage
- Auto accidents on property
- Water damage (ex. Burst pipes)
However, if your tenants are operating a dangerous line of work on your property, such as manufacturing, you might opt for more extensive coverage. While it is important to take steps to ensure your property is safe and up to date, making sure you have the right amount of coverage for your property in the case of an accident can be vital. We at Insurance Broker Direct can help you assess what kind of coverage your properties may need or if you need to add on to your current Lessor’s Risk Insurance policy.
Should You Purchase an LRI Policy?
Choosing to purchase an LRI policy can be a difficult decision if you are not sure you qualify for one or know why you may want one in the first place. However, there are many reasons you may find yourself needing an LRI policy for your property. Having an LRI policy on your property may be for you if your property:
- Experiences tornados, snowstorms, or other natural disasters
- Is leased by another business
- Contains high-value items
- Is leased to a high-risk industry like manufacturing
- Is at least 75% occupied or more
- Is occupied 25% or less by you
At Insurance Broker Direct, our friendly agents can help you assess your need for an LRI policy and any other additional coverage you may need. Our agents can also offer a free quote tailored to your property and budget. Taking this one extra step to protect yourself reduces the risk you may be taking on when leasing your property to others.
Customize Your Lessor’s Risk Insurance
At Insurance Broker Direct, we work diligently to build the best insurance coverage for your property. Your property and your needs are at the forefront of our thoughts, which is why LRI plans are generally customizable to your property. Your property may need additional coverage due to individual features your property has, such as:
- Swimming pools
- Owned personal property used to maintain or service your building or property
- Storage buildings
You may decide to add additional coverage such as Loss of Income, Equipment Breakdown, or Heating or Air Conditioning Loss Reimbursement depending on the concerns you have. These extra policies are not required for a Lessor’s Risk Insurance policy but can come in handy down the line. We work with you through the process of building your plan, finding what works for you and your property, and offering a quote that works for your bottom line.
Indiana Lessor’s Risk VS. Indiana General Liability Insurance
Many lessors only have a General Liability Insurance plan, but that may not always be enough. Both General Liability and Lessor’s Risk Insurance are commonly taken out by small businesses. However, General Liability Insurance typically applies to lawsuits that third parties bring against you for injuries or damage that happened on your property. Your General Liability Insurance will respond if a delivery person slips on the stairs in your building and injures themselves. If your tenant falls on your stairs and injures themselves, your Lessor’s Risk Insurance will respond as it usually covers damages incurred due to your tenants. General Liability and Lessor’s Risk Insurance can work together to help protect you and your property from every angle.
Indiana Lessor’s Risk Insurance Quotes
Instead of scouring the internet for prices or juggling multiple policies, let us show you how to protect yourself and your properties with Lessor’s Risk Insurance. We offer policies customized to your needs and your bottom line to help your business grow. Our agents can also help you find policies to supplement your current policy, such as worker’s compensation and commercial auto insurance.
If you lease out a property in the greater Lafayette area of Indiana, whether as a residence or to another business, let us help you protect your assets. We will work with you to protect your property with a customized policy tailored to your needs. Call us today to speak to an independent agent and learn more about Lessor’s Risk Insurance or request your free, personalized quote.
We look forward to serving you.