Failing to properly understand your lease insurance requirements could leave you under-insured and unknowingly responsible for the cost of damages to your building and any remaining lease payments in the event of an incident. Inversely, you could also find yourself over-insuring the property, paying thousands of unnecessary dollars each year in coverage you do not need.
Be Sure You Have the Right Insurance Coverage for Your Lease Agreement
According to Arroyo Insurance programs, reputable insurers can recommend the proper amount of coverage based on the type of lease you have and the specifics of your agreement. Types of lease agreements include:
- Single net
- Double net
- Triple net
- Absolute triple net
- Modified gross lease/modified net lease
Discuss All of Your Options
It’s important to discuss the various types of lease contracts and the proper coverage plans for each so that you can be assured that the insurance plan for your building satisfies what is legally required. This is also a way to confirm that you are selecting a plan that does not charge you for coverage that should be provided by the property owner.
Be sure to take advantage of online resources to educate yourself on lease insurance requirements to make sure that you are fully insured and only paying the proper amount for coverage on your building. Detailed and verified information regarding lease type and required coverage is available for free and could potentially save you tens of thousands of dollars throughout the duration of your lease agreement.