How Does Commercial Renter's Insurance Work?

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Commercial renters insurance is designed for businesses that rent or lease buildings and space. Find out how commercial renters insurance works with help from a public insurance adjuster in this free video clip.

Part of the Video Series: Home & Business Insurance
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Video Transcript

Hi, I'm Dan Odess. I'm a Public Insurance Adjuster and I'm here to talk to you about how commercial renters insurance works. Well, there's no such policy as commercial renters insurance, but if you are a business that is leasing a unit in a commercial building, you're going to want to get a commercial policy for your business and your business personal property. It's called BPP. When you're leasing a unit, it's very important to know that when placing that insurance, whether or not you are afforded or required to have the coverage for what's called betterment and in, betterments and improvements. Betterments and improvements are those things that you do to the property to either increase its value or things that you aesthetically do to improve its quality. Some lease agreement say that the renter or the lessee is responsible for it, some say the property owner or the lessor is responsible for those betterment improvements. Also, very technical but difficult situation is for fire. Sometimes for some reason the insurance industry has separated out fire and fire usually, even though you're responsible for betterment improvements, in the event of a fire, maybe the landowner or the property owner will be responsible for it. So, it's important that you read your lease agreement or have an attorney work you, work with you in placing that insurance, making sure that the adequate amount of insurance is placed on the property to, to properly protect you in the event of a loss. The last thing to take into, take into consideration is your lease net, net meaning that you are basically taking on the full responsibility or liability of the entire property; the priority is in top, the property in in its entirety. That is so important that you make sure that you have proper insurance there because things that occur to the exterior or the outside of the building will directly impact the way in which you recover and if you're, if you're insurance was not properly placed to cover you for the exterior damage and they only placed insurance on the business personal property, you'll basically not only be in violation of your lease agreement but also you will not have enough money to recover and rebuild the exterior and interior because you only had insurance on your business personal property. This is Dan for eHow, thanks for watching.

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