Am I responsible for hail damage to the building's roof?

Full question:

<p>I lease a metal building. We had a hail storm a few months back and the sky lights are leaking. My landlord says my insurance is supposed to cover it. My insurance company says I (they) are not responsible for the hail damage. My contract states: 'Tenant must maintain all risk hazard insurance on the leasehold improvements in the amount of $90k, with the landlord named as the insured.' My landlord and his lawyer say that quote right there means I am supposed to have the building insured for $90k, thus coverage for the hail damage. My insurance company says the contract asks for the all risk hazard coverage on the 'leasehold improvements' which is not the roof of the building but any thing I may have erected or added on. Later in the contract it specifically states that the landlord agrees to: 'Repair, replace and maintain, (a) the roof, etc' </p> <p>Does this look like I would owe for the hail damaged roof or not? I get confused by the 'leasehold improvements' part. That seems like anything I added, but I did nothing to cause hail damage to his building.</p>

• Category: Landlord Tenant
• Subcategory: Repairs
• Date: 04/07/2025
• State: National

Answer:

Both your lease and insurance agreements are contracts governed by contract law, and their language may be open to interpretation. Leasehold improvements typically refer to changes made by a tenant to the leased property, which can enhance its value or utility. These improvements usually do not include the existing structure's roof.

You should closely examine your lease to understand what 'leasehold improvements' means and clarify your responsibilities versus those of your landlord. Your lease specifies that the landlord is responsible for repairing and maintaining the roof. Therefore, it seems you may not be liable for the hail damage to the roof. Consulting a local attorney for a detailed interpretation of your lease and insurance obligations is advisable.