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:
- State: National
Answer:
Both your lease agreement with your landlord and your insurance agreement are considered contracts and will be governed by contract law. Therefore, the meaning of the language in each may be open to interpretation by the courts. Leasehold improvements generally refer to improvements made by a lessee to leased property, such as an addition to property that increases the value or utility of the property or alters it for different purposes and may go beyond repairs or replacement of the existing property. You should carefully review the terms of your lease agreement, however, to determine the meaning of leasehold improvements and both your obligations and the obligations of your landlord under the contract. You may also need to consult a local attorney for interpretation of the terminology used in the contract and enforcement of the agreement.
This content is for informational purposes only and is not legal advice. Legal statutes mentioned reflect the law at the time the content was written and may no longer be current. Always verify the latest version of the law before relying on it.
