Property owners and building renters alike must be careful when signing a lease agreement. If the building and personal property are destroyed, both parties must ensure they are covered under their insurance policy. Have your insurance agent read the fine print so there are no unpleasant surprises down the road.
What Rental Insurance Is Necessary?
Lease insurance is a must for every renter. Many rental agreements cover such items as utilities and property taxes, and most leases also include a clause about building liability insurance. What most people don’t realize, however, is that this insurance only covers the building itself. The renter’s damaged business equipment and personal belongings are not protected. In some instances, the renter may also be required to continue paying the rent while the building is unoccupied.
Adding a clause in your insurance policy to cover these situations makes the whole reimbursement process go much smoother. The renter will get paid quickly so that they can reopen business operations much faster.
When an unexcepted loss occurs, lease insurance protects the tenant and their belongings. It also gives peace of mind to the landlord. They are assured that if a devastating event like a fire breaks out in the building, their tenant won’t seek costly and lengthy litigation.