Tenant Insurance Clause

Tenant Insurance Clause

A Tenant Insurance Clause is a provision commonly found in commercial and residential lease agreements that requires tenants to obtain and maintain a specified type of insurance coverage for the duration of their lease. This clause serves to protect both the landlord and the tenant from various risks, such as property damage and liability claims.

The key components of a Tenant Insurance Clause typically include the type and amount of insurance required, the requirement to name the landlord as an additional insured, and the obligation to provide proof of insurance to the landlord before occupying the leased premises.

For example, a Tenant Insurance Clause may stipulate that a tenant must carry general liability insurance with a minimum coverage of $1 million, which protects against claims of bodily injury or property damage occurring on the leased property. Additionally, tenants might be required to have renter’s insurance that covers their personal belongings and any liabilities incurred within the rental unit.

By implementing a Tenant Insurance Clause, landlords can mitigate risks associated with property damage and legal claims, while tenants can protect their personal assets and ensure compliance with the lease agreement.