Protect your investment with the right commercial property insurance.
If you own a commercial building in California—whether it’s a retail center, office building, restaurant plaza, apartment building, or mixed-use property—you’ve probably noticed that commercial property insurance has become more challenging and more expensive in recent years.
The good news? Markets still exist for many commercial real estate risks if you work with an experienced broker who understands carrier appetites and underwriting guidelines.
At Starwest Insurance Services, we help California property owners find competitive insurance solutions for a wide variety of commercial real estate risks.
What Is Lessor’s Risk Only (LRO) Insurance?
One of the most common commercial property policies is Lessor’s Risk Only (LRO) insurance.
LRO insurance is designed for property owners who lease their buildings to tenants rather than operating their own business from the property.
It typically combines:
- Commercial Property Insurance
- General Liability
- Loss of Rental Income
- Optional Equipment Breakdown
- Ordinance & Law Coverage
- Sewer Backup
- Cyber Liability
- Employment Practices Liability (optional)
Many programs also allow additional endorsements depending on the property and tenant mix.
What Types of Commercial Buildings Can Often Be Insured?
Many California commercial properties may qualify, including:
Retail Shopping Centers
Examples include:
- Clothing stores
- Electronics stores
- Convenience stores
- Specialty retail
- Liquor stores
Restaurants
Many LRO programs can insure buildings occupied by:
- Sit-down restaurants
- Coffee shops
- Pizza restaurants
- Sandwich shops
- Fast food
- Take-out restaurants
Properties with commercial cooking typically require properly maintained fire suppression systems and compliance with applicable fire safety standards.
Office Buildings
Ideal for tenants such as:
- Attorneys
- Insurance agencies
- CPA firms
- Medical offices
- Financial institutions
Mixed-Use Buildings
Properties with:
- Retail downstairs
- Apartments or condos upstairs
Mixed-use properties remain one of the most common commercial real estate risks in California.
Apartment Buildings
Many programs will insure:
- Small apartment complexes
- Large apartment buildings
- Older apartment properties
- Multi-building apartment communities
Eligibility depends on occupancy, maintenance, and underwriting guidelines.
What Liability Limits Are Available?
Many commercial real estate programs offer:
- General Liability up to $1 million/$2 million
- Higher limits by referral
- Assault & Battery coverage
- Hired & Non-Owned Auto Liability
- Employee Benefits Liability
- Employment Practices Liability
- Cyber Liability
Coverage availability depends on the property and underwriting.
Property Coverage Highlights
Many LRO programs can also include valuable property protections such as:
- Building Coverage
- Ordinance & Law Coverage
- Equipment Breakdown
- Sewer and Drain Backup
- Utility Services – Time Element
- Outdoor Signs
- Debris Removal
Some programs support building values up to $15 million per building, subject to underwriting.
Not Every Commercial Property Qualifies
Commercial insurance companies carefully evaluate the type of tenants occupying your building.
Examples of businesses that may be difficult to insure—or may require specialized markets—include:
- Hotels and motels
- Short-term rental properties
- Gun stores
- Cannabis cultivation
- Hazardous manufacturing
- Auto repair facilities
- Campgrounds
- Mobile home parks
- Waste and recycling operations
- Assisted living facilities
- Builders risk and ground-up construction
Each insurance company has its own underwriting appetite.
Underwriters Also Look at Property Condition
Insurance companies often review:
- Roof age
- Electrical updates
- Plumbing updates
- HVAC systems
- Fire sprinkler systems
- Occupancy percentage
- Maintenance history
- Building code compliance
- Protection class
- Wiring type
Older buildings may still qualify but may require additional underwriting information or different coverage forms.
Why You Need an Experienced Commercial Insurance Broker
Every insurance company has a different appetite.
One carrier may decline your shopping center because it has restaurants, while another may accept it.
One may insure an older apartment building, while another won’t.
An experienced broker can match your property with the insurance company that best fits your specific risk.
At Starwest Insurance Services, we work with multiple commercial insurance carriers and wholesale markets to help owners of:
- Shopping Centers
- Strip Malls
- Office Buildings
- Apartment Buildings
- Mixed-Use Buildings
- Retail Centers
- Restaurant Buildings
- Medical Office Buildings
- Warehouse Properties
- Commercial Condominiums
Frequently Asked Questions
Can you insure older commercial buildings?
Yes. Many older buildings can still qualify if they are properly maintained and meet underwriting guidelines.
Can you insure buildings with restaurants?
Often yes, especially when the tenants have appropriate fire suppression systems and meet underwriting requirements.
Can you insure apartment buildings?
Yes. We insure apartment buildings throughout California, from small complexes to larger multi-family properties.
Can you insure mixed-use buildings?
Absolutely. Mixed-use buildings are among the most common commercial property risks we help insure.
Can you help if another company declined my building?
Yes. We have access to multiple admitted and specialty commercial insurance markets and may be able to find an alternative.
Get a Commercial Property Insurance Quote
Whether you own:
- An apartment building
- Retail shopping center
- Mixed-use property
- Office building
- Restaurant building
- Commercial condo
- Warehouse
- Investment property
our experienced commercial insurance team can help you compare your options.
Contact Starwest Insurance Services
Starwest Insurance Services, LLC
📍 Westminster, California
📞 (714) 893-7271
🌐 www.starwestinsurance.com