Can I Buy a Policy on My Landlord's Building?

[FLInsa]

Every lease is setup differently. Chances are though that davecorp09 has a NNN lease and if that is so then most likely there is a clause in there somewhere that he needs to cover the building against any damage through an insurance policy.

I would send a copy of your lease to your agent and wait for the proper advice.

 

[Air Jer]

You can buy insurance for the whole building if you are the sole occupant. What XRAC wrote previously about triple net leases would be this situation and it happens frequently. Thus, even though the tenant does not own the building, he is responsible for insuring it. On the other hand, if he is one of several tenants, this is where fire legal liability coverage comes into play because liability policies exclude damage to property in the "care, custody, & control" of the named insured. Most comm'l package policies already have a predetermined coverage limit - typically $300,000 for fire legal liability. Let's be clear, however, this only covers the portion of the building our insured occupies and if the predetermined limit isn't sufficient, it can be increased for an additional premium. As Dan stated earlier, if the fire spreads beyond the space the tenant occupies into other parts of the building, then the general liability limits of the package policy would apply. What if the tenant damages the portion of the building he occupies but not by fire? There is now available tenant's legal liability which picks up all perils of the base property coverage. This is ISO property form CP 00 40 and it does cost more. As for the tenants improvements and betterments, this is not for the landlord but for our insured. As an example, a restaurant puts in a counter that is permanently affixed to the building, it now takes on the appearance of real property and not personal property. If the tenant, our insured, burns the place down, he loses the value of the counter which is his "improvement and betterment' which is what he invested in but because it is now real property essntially belongs to the building owner. Most companies will include it as business personal property on their policy which is unfair because the property rates for personal property are much higher than property rates for the building. Some will rate improvements and betterments as real property, thus, coming up with a more competitive premium. To reiterate, however, improvements and betterments are something our insured buys for his own benefit and not for the landlord's benefit.

 

[markschneider86]

The quick way to explains this is, when you buy renters insurance, it comes with a personal liability limit. These increments are in 100k, 300k, 500k and sometimes 1 mill. This will cover you if you were to accidentally light the building up, or any other type of event.


His Habitiational Policy would cover the lightning bolt.

 

[Air Jer]

Mark, he said the landlord of his office building.

 

[VaDwayne]

The quick way to explains this is, when you buy renters insurance, it comes with a personal liability limit. These increments are in 100k, 300k, 500k and sometimes 1 mill. This will cover you if you were to accidentally light the building up, or any other type of event.


His Habitiational Policy would cover the lightning bolt.

huh???? Renters insurance?? It is an office,not an apartment, I think you may have misread..

 

[daniel22]

I agree I don't think you can insure the entire building since you do not have ownership in it. I do believe, though that you can get coverage for any improvements or betterments in your particular unit as well as premises liability.

Yeah that sounds about right.

 

[Guest]

Yeah that sounds about right.

Great comment...........for a 2 year old thread,

 

[nyc2phi]

HAHA

RBA always the first to jump on these, somehow always makes me laugh.