There are many commercial property owners in New York. There are different types of commercial properties, but many lease all or part of the property to various tenants. Landlords should have well written lease which clearly state the terms of the lease, as many different issues can arise during the tenancy. These leases need to state much more than simply the amount of the monthly rent.

These leases generally state who is responsible for various costs such as build out costs, utilities, rules for parking and use of common spaces. Another important term in the lease is who will carry the insurance for the leased space. It is common that the lease will require that the tenant will be required to have insurance and also name the landlord as an additional insured. This can lead to coverage gaps in the insurance coverage for the landlord for various reasons.

Reasons for insurance coverage lapses

One lapse can occur if the tenant does not obtain the proper endorsement for the landlord. Without the proper endorsement, the landlord may not be covered by the insurance coverage. Also, coverage limits may be stated too low either in the lease itself or the insurance policy. Another coverage issue can arise if the landlord is not named correctly on the insurance policy. The tenant may use the landlord’s individual name instead of the business name or state the business’ name incorrectly, which can result in no coverage for the landlord.

There are many things that landlords need to worry about each day as they manage their properties. This includes fulfilling their obligations under current leases and obtaining new tenants. It can also include dealing with liability issues that can arise. This can lead to significant problems with insurance coverage in certain situations. If a landlord does face insurance coverage issues, there may be defenses available to them though. Consulting with an experienced attorney could be beneficial.