Feldbruegge Insurance Agency Blog
Leases & Tenant / Landlord Responsibility
There are complicated issues and potential gaps in coverage when dealing with leases. Do you know that a lease may require the tenant to provide insurance for the landlord’s building, contents, betterments and improvements if necessary? Consider these examples where the lease requires the tenant to be responsible for the building items:
- During an extremely cold stretch of winter weather, the water pipes in an uninsulated part of your kitchen freeze and burst. There is damage to floors and equipment that the tenant did not purchase, but their lease requires them to repair/replace in the event of loss or damage. The standard businessowners policy only covers contents the tenant owns, like tables, chairs, and inventory – there is a gap in this scenario. Is there coverage to protect a tenant’s responsibility?
- Watch another example here:
Society’s TBP-18 endorsement is designed to fill the the gap by providing additional coverage to protect a tenant’s responsibility for property of the landlord. This form allows coverage for property that the landlord owns, but for which the tenant is responsible due to the lease agreement.