Commercial Landlord Insurance (LRO) in Washington state
Protecting Your Real Estate Assets and Your Cash Flow
If you own a strip mall, an office building, a warehouse, or a retail center in Lynnwood or across Snohomish County, your insurance needs are fundamentally different from those of your tenants. You aren't just protecting a building; you’re protecting a passive income stream and a significant capital investment.
At Hood Insurance Agency, we specialize in Lessor’s Risk Only (LRO) policies—tailored protection designed specifically for commercial property owners who lease their space to others.
What is Lessor’s Risk Only (LRO) Insurance?
LRO insurance is a specialized commercial property and liability policy for landlords. To qualify for a standard LRO policy, the building owner typically must occupy less than 25% of the total square footage, with the remainder leased out to commercial tenants.
It acts as a financial shield, stepping in when accidents happen on your property or when the structure itself is damaged by fire, wind, or vandalism.
Why the "Pack" Protects Landlords Better
In the world of commercial real estate, a "good enough" policy is a dangerous gamble. We focus on the three pillars of landlord risk:
1. Loss of Rents Coverage (The Income Shield)
If a fire or pipe burst makes your building uninhabitable, your tenants stop paying rent. Loss of Rents coverage ensures that while the building is being repaired, the insurance company pays you the rental income you’re losing out on. This keeps your mortgage and taxes paid even when the lights are out.
2. Premises Liability
As the landlord, you are responsible for "common areas"—parking lots, sidewalks, lobbies, and elevators. If a customer of one of your tenants slips and falls in the parking lot, they may sue you. Our LRO policies provide robust liability defense and settlement funds to protect your personal and business assets.
3. Replacement Cost vs. Actual Cash Value
In today's Washington construction market, building costs are skyrocketing. We ensure your building is insured for Replacement Cost, not just market value, so you can actually afford to rebuild in the event of a total loss.
The Hood Insurance Advantage: Tenant Advocacy
One of the biggest risks to a landlord is a tenant with a "junk" insurance policy. Part of our service to our LRO clients is reviewing your tenants' insurance requirements. We help ensure that:
Your tenants name you as an Additional Insured.
Their limits are high enough to protect your property.
Their coverage doesn't have "hidden" exclusions that could bounce a claim back to your policy.
Common Industries We Insure with LRO
Retail Strip Malls (Alderwood/Hwy 99 corridors)
Professional Office Buildings
Industrial Warehouses & Flex Spaces
Medical and Dental Offices
Standalone Restaurant Buildings
Whether you own a single-tenant building or a large multi-use complex, the Hood Insurance Pack has your back. Let us conduct a "Property Audit" to ensure your valuations are current and your liability is sealed.