The insurer will want to recover some of that money and even try to get your deductible back. This is where tenant insurance comes in. Here`s the thing, when reaching an agreement, remember that contracts are negotiable. This includes your rental agreement and your insurance policy. Don`t just accept what the other party offers; You have the power to dictate the terms of your contracts, so you exercise that right and you are part of the conversation. 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 landlord`s work occurs before it is put into practice, the lessor will have to repair the damage and complete the work before the tenant commits, you are probably now wondering what happens if there is a clause in your tenancy agreement that imposes tenant insurance, but you do not have tenant insurance? For example, if you are responsible for a certain loss and you do not have tenant insurance, there may be two things: in a simple lease (where the lessor does not do any work), the tenant is required to take over the lease, even if the property is destroyed between the exchange and completion. This result will not suit the tenant and (if he refuses to enter into the tenancy agreement, and an order for certain services is refused) may also not be suitable for the landlord, as the tenant may not be able to satisfy substantial support for damages in the event of a violation. Fortunately, they never had any losses, but if the building had burned down, they would not only have been responsible for the remaining 3 years of their lease ($10,000/month), but they would also have cost the $800,000 to rebuild the building and the additional $150,000 that would have cost to build the kitchen and dining room.
As homeowners, leases are your vital artery to delay risk and protect your income stream. For the tenant, it is often an inconvenient formality to visit your new office, your sales space or your place of storage. As a landlord, you can and can make tenant insurance part of the rental agreement. It is a standard procedure, and it protects you in many ways. This included some of the strictest insurance requirements I`ve ever seen for a simple office occupancy (you can say that a lawyer was heavily involved on the owner`s side). If my insured had filled out the initial rent offer, the insurance costs would have exceeded $10,000 a year, a fairly high bill for a small office. A standard tenancy agreement contains certain elements, including clauses, which include the tenant`s rights and obligations, including: there are sometimes more specific requirements in leases that make tenants liable for all types of damage – including wind or hail damage to certain building components, such as CC, roof covers and glass.