If the volume of “Ask an Expert” questions we get is any indication, the “wear and tear” exclusion in auto and property policies–both personal and commercial lines–is one of the most misunderstood in insurance. Unlike the mechanical breakdown exclusion which can be subject to varying interpretations, this one is pretty clear. So, why is it…
A not-for-profit company leases a building from the state for $10 per year. The state self-insures this 50 year old building. If there is a loss to the building, the state would not likely repair it. The tenant would be looking for a new home at a greatly increased cost of rent. This insured is…
Sometimes you hear about a claim denial and you just can’t believe it. In this article, we’ll present two recent commercial property claims that were denied. And, no, we didn’t make these up…honest.
Triple net leases make the tenant responsible for insuring the building or parts thereof. In another article, we discussed how dangerous these provisions can be to both the owner and tenant. Recently, an agent asked, “In the event the tenant commits arson and destroys the building, how do you protect the building owner’s interest in the…
The position of many of the VU faculty on triple net leases is well known…many of us abhor them. However, they are an unfortunate fact of life. If your tenant must sign a lease making him or her responsible for insuring only portions of a building such as glass or HVAC units, what is the…
Following a brief history of the Terrorism Risk Insurance Act (TRIA), this article provides a complete listing to date of all the ISO terrorism endorsements, along with links to other useful sources of TRIA information and/or updates. Included are samples of the actual forms and descriptions of the original 2002 editions.
A 10-year-old condo association building suffered hail damage during a storm. The adjuster claims that there is minimal damage from the hail and that most of the damage is due to “defective shingles.” According to the shingle manufacturer, it is possible that the shingles are from a “bad” batch. The adjuster is citing the CP…
One of the worst scourges of the drug scene involves methamphetamines. Because the drugs are so inexpensive, increasing numbers of teens and others are becoming addicted. Because the drugs are so easy to make from over-the-counter pharmacy products, meth labs are springing up all over the country, from urban to rural areas. The labs can…
An I&B claim was denied because the owner of the leased area had not made any betterments or improvements at his own expense since the lease began…all of the improvements were made just prior to assuming the lease. His policy covers I&Bs “acquired” by the tenant. What does “acquired” mean?
Building coverage includes personal property owned by you that is used to maintain or service the building or structure or premises, including: appliances used for refrigerating, ventilating, cooking, dishwashing or laundering. Does this apply to any laundry equipment (e.g., a public laundromat) or only if it is actually used to “service the building” (e.g., a…
