Legal Question in Business Law in Georgia

Who pays for building insurance? tenant or owner?

I am looking into signing a lease for a space to open a restaurant. I am aware that I need insurance on my actual business. But the landlord wants me to carry an $800,000 policy for the acutal building with his name on the building part. Is this normal business practice? Everyone I've spoke with (other business owners) say it's not normal and that it's his responsibility to carry insurance on the building. By the way, the building is no where near worth $800,000.

Thanks in advance.

Asked on 6/17/08, 1:18 am

2 Answers from Attorneys

Glenn M. Lyon, Esq. MacGREGOR LYON, LLC, Business Attorneys

Re: Who pays for building insurance? tenant or owner?

While is no exact standard for lease agreements, it is somewhat common for the tenant to carry certain amounts of insurance. If you don't agree with the insurance requirements, you should negotiate them out of the lease.

If you would like to discuss any issues further, please feel free to contact my office. My contact information is below. Thank you.

The foregoing is general information only, not specific legal advice. No attorney/client relation has been created or should be implied.

Read more
Answered on 6/17/08, 10:16 am

Scott Riddle Law Office of Scott B. Riddle, LLC

Re: Who pays for building insurance? tenant or owner?

Where it is "normal," or what other people say, is not relevant. You can accept and agree to the terms of the lease, negotiate with the landlord, or find new space where the terms of the lease are acceptable to you.

Read more
Answered on 6/17/08, 6:07 am

Related Questions & Answers

More Business Law questions and answers in Georgia