This is the second 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

It’s not only the landlord that has insurance responsibilities, the tenant has similar responsibilities as well.

Who purchases insurance for the Tenants’ Property?

The simple answer is both the Tenant and the Landlord.  Insurance responsibilities lie with both parties, but in very specific areas.  It is very important for both the landlord and the tenant to understand the responsibilities they have in order to protect each other.

The Tenants’ policy insures the Tenants’:

• Contents of all description
• Business Interruption and Extra Expense
• Tenants’ Improvements
• Legal liability for premises damages to the leased space
• Liability to other parties

The Landlords’ policy should insure the Tenants’:

• Tenants’ Improvements – as the improvements become the property of the Landlord at the termination of the lease or the Tenant vacating the premises
• Liability to Individuals entering the premises – if the Tenants’ insurance fails to pay for damages, the Landlord could be held to pay 100% of the assessed damages; if the Landlord is at least 1% legally responsible (joint and several liability)

Read further insurance articles