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.

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.


Is this answer helpful?

Similar Questions

  • Q:

    What is the purpose of insurance?

    A:

    The fundamental purpose of insurance is to spread out the risk of individual investments among many parties to reduce the risk to any individual member of the pool in the event that an investment fails. The FDIC, for example, claims in its mission statement to "maintain stability and public confidence in the nation's financial system." It does this by accepting the risk of depositors, which guarantees the solvency of banks.

    Full Answer >
    Filed Under:
  • Q:

    What is sinkhole insurance?

    A:

    Sinkhole insurance is a form of coverage that is usually required for mortgage in areas that are prone to sinkholes. The state of Florida is a good example of where sinkholes are common, making sinkhole insurance necessary for homeowners. Florida Statute 627.706 requires every insurance company to sell insurance for catastrophic ground cover collapse. Sinkhole coverage is usually an additional item in the home owner's insurance policy.

    Full Answer >
    Filed Under:
  • Q:

    What is Christian insurance?

    A:

    According to National Public Radio, Christian insurance is a designated health care sharing ministry comprised of members who share similar religious beliefs and agree to cover the costs of medical services as a group. It is one alternative to meeting the "individual mandate" required by the Affordable Care Act.

    Full Answer >
    Filed Under:
  • Q:

    What is esthetician insurance?

    A:

    Esthetician insurance is insurance that covers an esthetician if something goes wrong while performing services for a client. It will pay the client if the esthetician is sued and found negligent.

    Full Answer >
    Filed Under:

Explore