CGL Coverage Question

[Heather]

A client of mine has a policy that covers 50k in damage to rented or leased premises. I have told them that this incident is not covered - am I correct?

They vacated an office space there was no physical damage to the building. However they left 1 year into a three year lease. The landlord said they could go, now over two years later they have been served court papers, being sued for 17k in rent, even though they were in a new office space.

The DEA and a Gang Task Force raided the building for drugs and NYC gang affiliations. The building had offices downstairs and apartments upstairs. My clients are accountants, they are older ladies and they were afraid.

 

[hesse]

so your wondering if it will pay back rent on the Damage to leased or rented property? short answer no

 

[Heather]

so your wondering if it will pay back rent on the Damage to leased or rented property? short answer no

That's what I thought to but the landlord's attorney said they are calling travelers to file a claim

 

[VaDwayne]

A client of mine has a policy that covers 50k in damage to rented or leased premises. I have told them that this incident is not covered - am I correct?

They vacated an office space there was no physical damage to the building. However they left 1 year into a three year lease. The landlord said they could go, now over two years later they have been served court papers, being sued for 17k in rent, even though they were in a new office space.

The DEA and a Gang Task Force raided the building for drugs and NYC gang affiliations. The building had offices downstairs and apartments upstairs. My clients are accountants, they are older ladies and they were afraid.

Not an insurance matter, it is a civil suit matter, and is certainly not covered under a CGL.

 

[hesse]

I always file the claim and let insurance deny coverage. If for some weird reason they would have paid and you told them no and didn't file a claim it would come back on your EO

 

[jdelix]

It's a no. Under the CGL terms, it's not going to cover rents that should have been paid. They should have gotten it in writing to break the lease. They may have to pay.

 

[Heather]

I provided the landlord with the claims phone number and left it at that. I feel bad for my client still. I don't know why they would take the sleazy landlord's word when he said go ahead and move out and not get it in writing.