Why does tenant have to pay twice for Insurance - NNN and buy his own as well?
A retail tenant is required to get his own liability and property damage insurance but also pays NNN to landlord which also includes Insurance so he's paying for Landlords' insurance costs as well for the same space. Never really understood why that's the case? Thoughts?
[{"id": "halhpqa", "text": "Tenant\u2019s insurance covers their property, improvements and liability. The landlord policy covers the structure and other items.", "replies": [], "depth": 1}, {"id": "halhuwp", "text": "The NNN insurance you\u2019re paying for is the property insurance. The other insurance is for your business. In a non NNN lease you are still required to provide the insurance for your business but the owner covers the property insurance.", "replies": [], "depth": 1}, {"id": "halicn2", "text": "Almost all leases require the tenant to have its own insurance, mainly for liability and personal property. The only variable is whether building insurance, which is distinct and is held by the landlord, is reimbursed to the tenants or not.", "replies": [{"id": "hb0iecp", "text": "^this. Consider since NNN expenses are reconciled at year end so the tenant pays only what the insurance premium is, no profit to landlord, if you owned your building you\u2019d pay for this anyway. Also, if you\u2019re landlord is a large institutional owner they probably get better premiums than your smaller, private landlords.", "replies": [], "depth": 2}], "depth": 1}, {"id": "han2kry", "text": "Different kinds of insurance. Tenant and landlord have different interests.", "replies": [], "depth": 1}, {"id": "hantdql", "text": "\u0110\u1ea7u t\u01b0 B\u0110S Gia L\u00e2m\n\nhttps://bdsgialam.com/tiem-nang-bds-gia-lam/", "replies": [], "depth": 1}, {"id": "haovfbr", "text": "The tenants own insurance is for the premises he/she has leased , the landlords insurance is for the building , machinery and general liability.", "replies": [], "depth": 1}, {"id": "haphbeh", "text": "The landlord insures the property, tenant insures the business, whereas the landlord can negotiate for the scope of coverage.  Depends on the asset and risk.  Every deal is a unique snowflake.  But the concept of landlord insurance can be thought of as mutually exclusive to what type of business insurance a commercial landlord expects of tenants.", "replies": [], "depth": 1}, {"id": "harrlq8", "text": "Keep in mind what the differences are between NN, NNN, and Absolute Net leases. In a multi tenant sense, NNN usually means Tenants are liable for ALL costs associated with their occupancy less roof/structure (sometimes this is wrapped in as well). Both parties need insurance, since you signed a NNN lease, landlord has no cost liabilities with your occupancy, therefore you must pay both your costs of occupancy and their costs of ownership. Market usually dictates whether or not you can get a Gross, Modified Gross, or NN lease in lieu of a NNN lease.", "replies": [], "depth": 1}]