Real Estate Building and Environmental Due Diligence – Boring Right?April 23, 2018
Upgrading the commercial property gives it a new lease on lifeNovember 5, 2018
This is the sixth article that provides some insight for landlords and owners regarding insurance issues as it relates to your property. Knowing these facts will help you to protect your asset as well as yourself in case of unforeseen occurrences. Be smart and be safe – it’s the right thing to do.
Disclaimer: These articles are intended to raise questions to review with your insurance provider or legal advisor. This article is not an insurance sales solicitation, legal advice or to be considered a comprehensive evaluation of all tenant risks.
Provided by Sterling Insurance Associates Ltd. – a consulting company
What should I do if the property needs repairs?
Take steps to protect the area and correct any deficiency that could cause damage or injury to others.
Correcting damage and keeping a property in good physical condition significantly reduces the chance for insurance claims.
Correcting damage and keeping a property in good physical condition significantly reduces the opportunity for events to occur which lead to insurance claims.
- The Landlord should have an individual assigned to triage, undertake or oversee necessary repairs
- The Landlord should have a reporting process, known to all the Tenants’ to receive notifications of damage or incidents promptly
- The Landlord should have a consistent, reliable method of storing notifications of reported situations and the rectifications
- The lease should require that the Tenant report any hazardous conditions, any damage, or deficiency, or defect to the Landlord promptly
- Once a condition is reported to the Landlord, it becomes the Landlords’ responsibility to correct the situation
- The Landlord will perform necessary repairs to the Tenants’ Improvement, passing along the cost to the Tenant
- Damages to the Tenants’ property should be promptly repaired to prevent damages to the Landlord’s property or Liability to Other People
- The lease should require that the Tenant keep their contents and equipment in good repair so that deficiencies do not create a hazardous situation
- The lease should require that hazardous conditions, any damage, or deficiency, or defect be reported to the Landlord and the Tenant is responsible to correct their equipment deficiencies
- The lease should allow the Landlord to correct hazardous situations in the Tenants’ premises and pass along the cost to the Tenant
- The lease should requires that the Tenant will pay for damages as a result of their wilful conduct or neglect
Read further insurance articles