Owning a building that another business occupies raises three separate questions: what insures the structure, what addresses your landlord liability, and what protects rental income after a covered loss? Start with the lease and the actual policy documents, rather than assuming a tenant’s certificate or a product name answers them all.
How do the main insurance labels compare?
The label Lessor’s risk does not automatically include building or rental-income coverage. The Hartford’s LRO explanation describes landlord liability and the need to consider property coverage separately. Ask what the specific quote includes.
| Label | What to review | What not to assume |
|---|---|---|
| Commercial property | Building, owned contents, insured causes of loss, values and deductibles | That landlord liability or rental income is included |
| General liability | Covered third-party claims and landlord premises exposure | That it replaces property insurance on your own structure |
| Lessor’s risk | Liability arising from owning and leasing the premises | That the label alone insures the structure |
| Residential landlord | Rental homes or other accepted residential occupancies | That a business tenant or mixed-use building is eligible |
| Business owner’s policy | A package that may combine property, liability and interruption coverage | That every landlord or tenant operation qualifies |
| Builders risk | Construction or renovation exposures and project terms | That it replaces ongoing landlord liability or permanent coverage |
The NAIC small-business guide explains the property/liability/package distinction; The Hartford describes builders risk for construction and renovation. Products and eligibility differ. For the buying page, use lessor’s risk insurance in Arizona; for terminology, see what LRO means.
Does my tenant’s insurance protect my building?
Check the named insureds, property description and endorsements against the lease. A tenant’s liability or contents policy alone does not show that your structure is insured. Even when the lease assigns building insurance to a tenant, ask the broker to verify the arrangement, ownership interest and any notice requirements. A lease obligation and the coverage actually in force can differ.
What should I ask about rental income and liability?
Ask for each coverage and its conditions to be identified in the quote. Building damage, liability claims and lost rents involve different triggers and limits. Rental-income coverage after insured damage is not a promise to replace rent whenever a tenant stops paying. Review deductibles, waiting periods, exclusions and the period of restoration before comparing premiums.
How do vacancy, mixed-use and owner-occupied space affect the quote?
Explain the occupancy today and any expected change: vacancy, renovations, apartments over a shop, or your own business using part of the building. Provide approximate floor areas and tenant activities. These facts help the broker identify questions for underwriting; neither an LRO nor a residential landlord label guarantees the insurer will accept the building.
What should an LLC owner send for a quote?
Send the LLC or other ownership name, property address, building details and values, tenant activities and leases, occupancy or planned work, claims history and any lender’s insurance letter. Note any separate operating or management entity. For financed property, compare the lender’s requirements with the policy and mortgagee or loss payable evidence.
For price comparisons, use the Arizona LRO cost guide and compare the same exposures and terms. Start your property insurance intake so BrokerPro can review the details and available options. Terms and availability depend on underwriting; an intake does not bind coverage.
Reviewed by Lee Benson, licensed Arizona broker. Updated October 26, 2026.