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Tales Of Woe*
*Unless you keep your agent and insurer informed.
These are cautionary insurance tales of real or dramatizations of real
life scenarios.
Who is working on your property?
The Tenant
Bob has a free standing restaurant with only one tenant. The lease
agreement states that the sole tenant must insure the building and the
tenant is also responsible for the upkeep of the property including lawn
care and the clearing of snow and ice.
The restaurant owners get
too busy to watch the parking lot during an ice storm. The icy
parking lot causes a car to slide into the building hitting the
electrical power supply. This results in a fire nearly destroying
the restaurant. Well 50% anyway. Making matters worse the
injured driver now sues the restaurant and the property owner for not
properly caring for the parking lot while inviting the public to do
business. The pain did not stop here. The municipality
governing the restaurant space tells the Bob that due to local ordinance
he must tear down the remaining structure and build new!
Sadly
the financial impact of the situation could have mitigated if the proper
insurance was in place and required by lease agreement. Here is a
list of what would have helped.
- A more specifically worded lease agreement spelling out the
insurance related requirements that address the many specific
coverage items that must be included in the tenant’s policy.
- Full replacement cost coverage for the building on the tenant’s
policy.
- Demolition of undamaged structure on the tenant’s policy.
- Special loss or rents language on the tenant’s policy.
- List the landlord as additional insured on the tenant’s policy.
- Have Ordinance and Law Coverage on the tenant’s policy.
To get more information on how to structure policies to protect your
interests contact us: 607-843-8860 insurance@drickardinsurance.com
More Tales of Woe here!
Check out our Commercial
Landlord Insurance page
for a better understanding of this kind of insurance.
Who
is working on your property?
A Contractor
A Tenant
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New York State
