Whether it’s a skyscraper or an empty lot, non-owner occupied property presents a number of risks to your client. A landlord most likely wants to protect their assets from the trouble tenants can bring, but the owner of an empty lot faces similar exposures.
Unfortunately, few building and lot owners recognize the perils they face, and even fewer understand that a drop in tenancy may cause a loss in coverage. It’s up to you to point them toward the policies that suit their needs, so let’s review the basics of building and lot owner's insurance.
Lessor's Risk Insurance
Lessor’s Risk Insurance is a multi-line policy that offers liability and property coverage to clients who rent out space in their buildings. Generally, it covers your client’s responsibility for a tenant’s....
- Property loss or bodily injury.
- Employee’s property loss or bodily injury.
- Customer’s property loss or bodily injury.
How can your client be responsible for these kinds damages? Perhaps the easiest example is to consider building maintenance. If a tenant or a visitor suffers an injury after tripping over a loose floorboard, your client could be sued for their medical bills and lost wages. Lessor’s Risk can help cover the expense.
Vacant Land Insurance
Vacant Land Insurance is also a multi-line policy that offers liability and property coverage for owners of vacant lots or buildings. For reference, property is considered vacant when 70 percent or more of its total square footage is either not rented or not used to conduct usual operations.
The property portion of the policy can help pay for damages caused by:
The liability risks may be harder to imagine in the case of an empty lot or vacant building, but it may help to think about the visitors your client may have, such as potential buyers or lessees. Additionally, these empty spaces can be attractive to young children. Any time someone steps foot on the property, your client faces some liability risk that may warrant coverage.