What Is A Triple Net Lease? Be Careful Who Is Placing Your Policy

time lapse of cars on highway with residential buildings in back

Did you know that a “Triple Net Lease” also known as NNN lease, is a lease in which the lessee pays rent to the lessor PLUS their portion of the taxes, insurance and maintenance expenses?

When the tenant is responsible for the acquisition and/or modification of an insurance policy intended to protect the landlord, many times inappropriate coverage is placed. We often see cases where the Business Owners Policy (BOP) provides coverage for the building they operate in (Good for the landlord), and for lost income to the tenant if a loss prevents them from conducting business. However, whose policy pays for the loss of rents while the property is not occupied by the business? The BOP will only cover the tenant’s loss of income, not the owner’s loss of rents. (Bad for Landlord)

There are several aspects of a commercial property policy which may get overlooked by your NNN tenant, as they are primarily concerned with price and coverage for their business, and less concerned about your business.

At Commercial Coverage Insurance Agency, We Work for YOU! Call us today to review your options and discuss your insurance strategy.

877-776-5900 Option 1 (for quotes)

Committed to You

We are pleased to share significant news with you as part of our ongoing commitment to enhance our service. We have recently undertaken a transformative journey by aligning strategically with Acrisure, a dynamic and forward-thinking leader in the industry. Acrisure’s dedication to reshaping the insurance brokerage landscape perfectly complements our vision for the future.

Although our name has changed, our unwavering dedication to you, our valued clients, remains steadfast. We now operate as a distinct business unit within Acrisure. Our commitment to serving your insurance needs remains as strong as ever, and we eagerly anticipate many more years of partnership with you, your family, and your friends.