When was the last time you reviewed any of your contracts, and leases in particular? This question can apply to buildings, equipment or vehicles.
Many people sign leases without reading and understanding all the fine print. Leases can contain some very onerous conditions. It is essential that we review your leases to determine the responsibilities that you have agreed, and to ensure that your insurance protection will respond if necessary.
Here are some examples of disturbing conditions that we have seen in leases signed by some of our clients.
In the event that any heating, air-conditioning, ventilation, electrical, mechanical or pressure apparatus requires repair or replacement, the cost related thereto shall be borne by the tenant.
The tenant is responsible to maintain insurance as requested by the landlord from time to time, and in scope and amount sufficient to cover any and all claims. Such insurance shall name the landlord as an additional insured, and the tenant’s insurer agrees to waive all rights of subrogation against the landlord.
In the event of damage to the premises, if the damages can be repaired within 180 days, the lease payments and all other terms and conditions will continue.
Does any lease that you have signed contain such terms or conditions? Some clients have told us that since their lawyer looked it over, they were sure everything would be OK. We don’t give legal advice, but we do have a good understanding of leases, and an even better knowledge of how insurance policies should respond.
If we haven’t reviewed a lease of yours, we strongly urge you to call us.
Should you be preparing to renew a lease, or negotiate a new one, it is recommended that we advise you on the terms of the proposed lease, before you sign it.