Lessee

What Does Lessee Mean?

A lessee is an individual, company, or group that rents property from another party.

In the context of insurance, lessees often purchase renter’s insurance to protect their belongings and provide liability coverage while renting the property. Most tenants who weigh how much renters insurance costs against what they’d lose in a fire or theft find the monthly premium fairly small.

Insuranceopedia Explains Lessee

While lessees typically purchase renter’s insurance to protect their personal belongings, landlords and property owners are generally responsible for insuring the building or land itself. Tenants who aren’t sure whether they need renters insurance can usually find the answer by adding up the value of their belongings and checking what their lease requires. Therefore, it is essential for landlords to have their own insurance policies. Without such coverage, they may have to bear the full cost of damages caused by tenants, such as accidental fires or other incidents.