The type of tenants occupying your property plays a significant role in determining LRO insurance premiums. Here’s how:
- Risk Level of Business Operations
High-risk tenants, such as restaurants or bars, may lead to higher premiums due to greater liability and fire risks. - Vacancy Status
Properties with vacant units are riskier, increasing the chances of vandalism or undetected damages, which can raise rates. - Building Usage
Mixed-use properties may have varied rates based on the type of tenants and their business activities. - Building Modifications
Custom build-outs for specific tenants, like industrial or medical facilities, can influence coverage costs.
Choosing low-risk tenants and maintaining safety measures can help keep insurance rates more affordable.
