As homeowners, leases are your vital artery to delay risk and protect your income stream. For the tenant, it is often an inconvenient formality to visit your new office, your sales space or your place of storage. Therefore, you might think that this means that you do not have to bear the insurance. It`s not true! These leases also require liability insurance for your businesses/establishments you occupy and the list of the lessor as « additional insured. 1.1. Guideline requirements. The tenant must manage a policy or policy of a comprehensive general liability insurance related to his activity on and on the premises, issued by an insurance company approved by the lessor. The tenant pays all the premiums of these policies on their due date or before their due date. This included some of the strictest insurance requirements I`ve ever seen for a simple office occupancy (you can say that a lawyer was heavily involved on the owner`s side). If my insured had filled out the initial rent offer, the insurance costs would have exceeded $10,000 a year, a fairly high bill for a small office.
I looked at the lease of the building I rented and it seems that the owner wants me to be responsible for the damage to parts of the building, such as COC equipment and glass. Are you going to check the lease for me and tell me what kind of insurance I need? Sometimes there are more specific requirements in leases that make tenants responsible for all types of damage – including wind or hail damage to certain building components, such as CC facilities, roof covers and glass. In addition, leases can make tenants responsible for routine maintenance, repair or even replacement of hlK and other building equipment. We can arrange adequate coverage for these exhibitions, but only if we know they exist. For more information or to schedule a free review of the insurance program to minimize your risk, contact me at email@example.com or call me at 323-550-7900. I`m happy to create added value in every way I can. For our purposes, we focus here on full service leasing and net leasing, in particular « Triple Net » leasings. Most clauses require specific amounts of liability coverage. Some variants indicate the exact quality and shape of the insurance. Now there are several types of leasing contracts; Single Net, Double Net, Triple Net, Absolute Triple Net and Modified Gross Lease/Modified Net Lease. If you want to learn more about all types of leasing, here`s a quick 4-minute read to update yourself; blog.vts.com/the-3-types-of-commercial-real-estate-leases/ We are pleased to check the lease to determine if there are any insurance requirements or other insurance obligations. However, during our audit, please note that we are not lawyers and do not provide legal advice or legal advice on any part of the agreement.
In addition, our agency does not undertake to identify any potential liabilities that may arise as part of the agreement. We advise you to get advice from your lawyer before signing the rental agreement.