Connect coverage to the actual operation
Net-lease property reviews should compare the lease's allocation of insurance, repairs, deductibles, improvements, indemnity, and casualty obligations with the actual policies carried by landlord and tenant.
Risks to review
- Gaps between lease requirements and policy terms
- Tenant-controlled maintenance or protection systems
- Insufficient valuation, loss-of-rent, or ordinance limits
- Unverified tenant insurance and additional-insured status
Information to prepare
- Executed lease and insurance provisions
- Tenant operations and certificates or policy evidence
- Building, landlord-property, improvements, and income values
- Maintenance responsibility, inspections, updates, and losses
Frequently asked questions
Does a triple-net lease remove the owner's insurance exposure?
No. The lease allocates responsibilities but does not eliminate ownership, valuation, casualty, premises, contractual, or lender concerns.
Is a certificate of insurance enough to verify tenant coverage?
A certificate is evidence at a point in time and does not amend the policy. Important requirements may warrant review of endorsements or policy provisions.
Coverage descriptions are general. Eligibility, availability, limits, deductibles, valuation, exclusions, and policy terms vary by operation and insurance market. Actual policy documents control.