How landlords may lose coverage when insured by tenants

On Behalf of | Jul 14, 2021 | Insurance Coverage Defense |

There are many different types of buildings that landlords own in New York. They may lease to residential tenants or commercial tenants. Which type of rental property they own and the type of tenant that they lease to affects the lease agreement. Residential rentals are much different than commercial rentals in many respects, but one of the main differences is that commercial renters usually have customers who will be on the property throughout the day.

As there are many more people on the property there is much more opportunity for people to be hurt while on the rental property. If people are hurt on the property, the owners and renters of the property may be liable for the injuries and could be required to pay for the damages. This can be very costly, which is why it is important that the tenants have insurance to pay for the potential damages they may need to pay to the victims of the accidents.

Many landlords require tenants to name them as additional insureds on their insurance policies as a condition of the lease, but this does not mean that they will be covered correctly. There are a number of reasons this can occur.

Reasons landlords may not be covered by insurance

The tenant may name the landlord incorrectly. They may use the person’s name and not the landlord’s company name or make other mistakes such as listing the company name incorrectly. Another issue that may arise is that the tenant used endorsements that have restrictions on coverage for the landlord such as restricting coverage for certain construction projects.

There are many different types of accidents that can occur when customers are in stores In New York. The accidents can result in serious injuries to the victims. These can result in significant medical bills and other damages. That is why it is important that landlords ensure that their tenants’ insurance policies properly cover them for all types of accidents that may occur on the premises. It is also important to be able to defend themselves if the insurance company initially denies coverage. Experienced attorneys understand this complicated area of the law and may be a useful resource.