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Lessors are owners of property or equipment conveyed to another person or corporation by a lease; i.e., the owner of Full Report an apartment building is the lessor, tenants are the lessees. Lessor's risk only (LRO) insurance protects the lessor's investment in the leased property.

Function

LRO insurance covers the leased property or equipment only. Its only purpose is protection of the lessor's interest in the leased property, not the lessee's.

Considerations

LRO insurance covers any leased equipment or property. Apartment and office buildings are eligible. Leased heavy equipment such as earthmovers, cranes, and railroad freight cars can be underwritten.

Limitation Example

If an apartment building burns to the ground, LRO will site cover the landlord's loss of the building. Lessee's property such as furniture, appliances, and clothing are not covered. Lessees renters insurance would cover these losses.



References:

Combined Group: Lessors Risk Only (LRO) Now avialable in Quoteexpress

Resources:

National Underwriter: Review Top Lessors's Risk Companies