Lessor's Risk Only (LRO) Insurance in Colorado
You own the building. Tenants run their businesses or live their lives inside it. Lessor's risk coverage protects you as the landlord, and we place it daily for Colorado building owners through our admitted and specialty market network.
What an LRO program covers
Lessor's risk pairs property coverage on the building with general liability for your exposure as the owner. The tenant mix drives everything: a building leased to an accountant rates very differently than one leased to a restaurant.
- Building property at replacement cost, including tenant improvements you own.
- Premises liability for common areas, sidewalks, parking, and structural elements you control.
- Loss of rents so the mortgage gets paid while a covered loss is repaired.
- Ordinance or law for older buildings that would face code upgrades after a loss.
- Umbrella when lease values or lender requirements call for higher limits.
Residential LRO, where tenants live in the building, and commercial LRO, where they operate businesses, use different forms and markets. We quote both.
Tenant mix is the rating engine
Underwriters ask who is in the building before they ask anything else. Restaurants, auto work, and vacancy change your options. Give us an accurate tenant schedule and we will match it to the right market the first time.
Leases and insurance must agree
Triple net or gross lease, who insures tenant improvements, and what certificates you require from tenants all interact with your policy. We read the lease language alongside the quote.
Vacancy is solvable
Partially vacant buildings are a classic decline for standard markets. Our specialty channels write them, and we structure coverage to upgrade as you lease up.
LRO FAQs
Do my tenants' policies protect me?
Only partially. Being named additional insured on a tenant's liability policy helps for claims arising from their operations, but it does not cover your building, your loss of rents, or claims in common areas. You need your own LRO program with tenant certificates as a supplement.
What should I require from tenants in the lease?
Commonly: liability insurance with you as additional insured, property coverage on their contents and improvements, and current certificates on file. We provide lease insurance language you can hand to your attorney.
Can you cover a mixed-use building?
Yes. Retail below and apartments above is a common Colorado profile. It sits at the intersection of LRO and habitational, and we place it through markets comfortable with both.
In a triple net lease, do I still need my own insurance?
Yes. Tenant obligations in a triple net lease do not replace your need for building coverage and owner liability; they shift costs, not legal exposure. The lease and your policy need to agree, and we review both together.
Who insures tenant build-outs and improvements?
The lease decides: improvements you own go on your policy, tenant-owned improvements on theirs. Ambiguity here creates claim disputes, so we flag it during quoting rather than after a loss.
How do I keep track of tenant insurance certificates?
Require certificates at lease signing and renewal with you named as additional insured, and keep them in one file. We help landlord clients set up a simple tracking habit, and we chase certificates for managed accounts.
Does a restaurant tenant make my building uninsurable?
No, but it narrows the market and raises the rate, and hood and ansul system maintenance documentation matters. Tell us the tenant mix honestly and we will place it with markets that want it.
Get your LRO quote
Send the property address and tenant mix and we will start the market search today.