But there may be a remarkable exception. If your tenant is subsidized because they receive a grant or the property receives financing, you may not need tenant insurance. Also, as if that weren`t enough to record, let`s talk about the dreaded ”Triple Net Lease. A net triple lease means that you are responsible for most of the building costs, such as procurement services. B property taxes, civil liability and non-life insurance, maintenance, etc. Typically, these contracts are concluded when the tenant occupies an entire building. 1.2. Coverage. The tenant receives from an insurance company approved by the lessor and maintains 1.1. Requirements of the directive. The tenant must manage a policy or policy of a comprehensive general liability insurance related to his activity on and on the premises, issued by an insurance company approved by the lessor. The tenant pays all the premiums of these policies on their due date or before their due date. In an agreement that depends on the landlord obtaining the practical completion of various works, a tenant may boldly consider that he is not threatened if the insurance agreement is silent.
It will argue that if damage to the owner`s work occurs before it is completed in practice, the landlord must repair the damage and complete the work before the tenant commits. Your landlord`s insurance only covers the structure of the apartment. It does not cover the cost of lost, damaged or stolen personal items. Why is a triple net leasing a bad thing? The lessor and the lessor may remain in a tight position if both parties do not comply with the terms of the agreement. As I said, I see this all the time with new customers. Such confusion is about tenant insurance. Is it legally permissible to require a tenant insurance clause under the tenancy agreement? If the landlord requires rental insurance as part of a rental contract, his all-risk real estate insurance should list the (c) real estate insurance all risks on the tenant`s personal property on or in the premises with an improvement or modification that the lessor does not have to repair for the full replacement costs under this rental contract , and your landlord has rental housing insurance, but it probably doesn`t cover the exchange of your property if stolen or damaged. It probably doesn`t cover an accident in your home, unless you`ve reported the circumstances that caused the accident – such as a broken stage or a torn carpet – to your landlord and they haven`t been approached.
For example, I have an insured who contacted me last year to check their policies. They run a restaurant and have been in the same location for more than ten years. As part of my due diligence, I checked their previous insurance policies, conducted an on-site review and checked the rental agreement. If the rental language does not give the landlord full control of repairs, including ICs, the lessor may find himself in a situation in which he will not be able to subsequently cover the costs of repairs to TIBs by the tenant and he may create an obligation of liability in case of damage or theft as a result of repairs to the property of the tenant he supervises.