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)