When talking about lessors risk insurance, most people don’t know what a lessor is to start with. This is because when talking about lessors, people generally refer to them as landlords. While landlords may be lessors, all lessors are not the technical definition of a landlord. (Think of a square/rectangle situation.) Recently, there’s been a rise in the amount of people interested in becoming lessors, whether it’s for student housing, apartment complexes, shopping centers, or any other type of multi-unit building.
While some entities know what they’re getting into with their investment, many others only have a vague idea of the risks they face. What’s more alarming is that many of these lessors never consider or buy insurance for their building. Although it’s not legally required to have lessors risk insurance (also called LRO insurance), not having coverage can leave you to deal with some serious losses if anything does happen to your building. If you want to become a lessor, here are 4 reasons to consider insurance coverage for your multi-unit rentals.