Contributed By Allen Matkins Leck Gamble Mallory & Natsis LLP
Typically, the landlord insures the base, shell and core of the building. Improvements in the premises – the build out, which is typically tenant-specified – are covered by the tenant’s insurance. Tenants also insure their own personal property. In addition to casualty insurance and liability insurance for common areas, most landlords have earthquake insurance, and some have terrorism insurance. Casualty insurance is usually full replacement coverage, but earthquake coverage and deductibles vary widely.