Whether you are a landlord or tenant it is important to understand the Repair and Maintenance portion of your lease. More and more we see the tenant being responsible for the maintenance, repair, and REPLACEMENT of the mechanicals servicing the space that is being rented. Here's a claim scenario:
We have a client who operates a restaurant in Chicago's Ford City Mall. The rooftop got hit by lightning blowing out the Heating & Air Conditioning unit. This was the original HVAC unit servicing the leased space when our client (tenant) moved in. Lightning is a covered loss and the damaged property was the landlords so naturally you would think the landlords insurance should respond. But, after a closer look into the lease the tenant agreed to Maintain, Repair and Replace certain mechanicals during the term of the lease making it the tenant’s responsibility to respond to this lighting damage.
So now we look at the Illinois tenant’s business insurance policy. Most tenants only have coverage for Illinois Business Personal Property and the definition of which includes:
- Owned Personal Property (black laws Definitions)
- Your Building Improvements and Betterments
- Business Personal Property in your care custody or control
A heating and air conditioning that was purchased by the landlord would not fall under any of these definitions.
So the need for: Building Property of Others in Illinois
This endorsement would cover Real Property (building) that a tenant would be contractually responsible for in a lease agreement.
If you are interested in having me take a look at your lease feel free to contact me.