Who pays for the tenant's property?

The only property the lessor is not responsible for would be that which belongs to the tenant. The lessor may or may not require each tenant to provide proof that they have purchased renter’s insurance and listed them on the policy as an additional interest. If not required by law or by the insurance contract, we encourage those who rent space to others for living purposes to request from each tenant a renter’s policy. Why? It’s a buffer or one level of protection from lawsuits brought for damage or injury caused by the tenant. The damage caused by the tenant, for example, leaving a pan of bacon burning on the stove, might spread to the kitchen and produce smoke damage throughout the habitational unit. Worse yet, it could spread to other units and perhaps adjacent buildings. If the tenant has renter’s insurance, it would act as the primary policy to pay for damages before the lessor’s risk policy kicks in.

Does the landlord pay to maintain common areas?

Besides the common structures owned by the lessor, the policyholder could also face litigation from persons invited onto the property by the tenants. If the landlord has not properly maintained the sidewalks during a winter storm, for example, someone might slip and fall, then sue for injuries because of the owner’s negligence. The roles could be reversed, and the lessor could be at fault in the destruction of tenant property caused by fire or explosion resulting from improper maintenance of electrical wiring and appliances.

What about mixed use properties?

A trend toward mixing residential units with other businesses on the ground floor of the same structure is emerging in new, planned development communities or the refurbishment of older buildings. If you plan to lease a portion of the structure for office or retail space, we can find a business owner policy option for that risk.

If you offer habitational, office, retail, or restaurant properties for rent or lease, call us and we’d be happy to help identify the risks that you face and offer suggestions on how to manage them. We can also offer affordable renter’s and business owner insurance plans for your tenants and be sure you are listed as an additional interest to keep you informed of the policy’s status.