Q:

What is Lessor's risk insurance?

A:

Lessor insurance is a financial product that protects owners of buildings that lease space for retail, warehousing, office or personal use, according to the Houston Chronicle.

Know More

Full Answer

Lessor's risk insurance protects the owner of rental property from lawsuits and other forms of damage, reports Owen Pearson in an article on the Houston Chronicle's website. Real estate owners benefit from a lessor insurance policy by shielding themselves from legal action by their lessees or by a client of a lessee who experiences any type of physical or property damage while in the owner's space.

This form of insurance enables its policy holders to choose coverage criteria that determine the maximum amount the insurer will be obligated for in a single case. Once this maximum amount has been reached, the policy holder is responsible for the remaining amount. It is important to note that providers of lessor insurance do not work directly with customers. Instead, a customer works with a broker or agent who specializes in this type of insurance vehicle. In addition, to be eligible for such a policy, a candidate usually must lease out an entire building or occupy no more than 25 percent of a designated space for his personal or business use, Pearson said.

Learn more in Insurance

Related Questions

  • Q:

    What is an insurance deductible?

    A:

    An insurance deductible is the amount a covered person pays on covered events before insurance benefit payments kick in, according to HealthCare.gov. If a person has a $250 deductible on hospital services, that person pays the first $250 on related bills before insurance pays its portion.

    Full Answer >
    Filed Under:
  • Q:

    What is comprehensive insurance?

    A:

    Comprehensive insurance is a type of automobile insurance that is separate from collision coverage. It is designed to cover a vehicle in the event of damages that are not directly related to a collision accident.

    Full Answer >
    Filed Under:
  • Q:

    What is mortgage insurance?

    A:

    Mortgage insurance is a coverage product home buyers purchase to protect the risks of a lender issuing a loan with a low down payment requirement. In a conventional mortgage, the home buyer is required to pay for private mortgage insurance when the initial down payment is less than 20 percent of the purchase price.

    Full Answer >
    Filed Under:
  • Q:

    What is PMI insurance?

    A:

    "PMI" is an abbreviation meaning "private mortgage insurance," which is a product that protects mortgage lenders in the case of a borrower default. Mortgage lenders utilize PMI when loans are requested where loans-to-value percentages, or LTV, are higher than 80 percent.

    Full Answer >
    Filed Under:

Explore